In today's job market, you as a job seekers care about more than just high salaries. You value more benefits. These include generous leave, health coverage, and flexible conditions. Moreover, opportunities for professional development and training are also highly sought after. Providing a competitive package with attractive perks and benefits can help you work in your best form. Here's what this article will cover:
Employee benefits are any form of pay that companies provide to employees through programmes, policies, or services. These are in addition to their base salaries and wages. For example, an employee benefits package may include health and life insurance, annual leave and retirement benefits. Some employee benefits are mandatory according to the Employment Act of 1955.
Other voluntary benefits vary depending on the company. Employers often give additional incentives to attract and keep you. Some popular benefits include gym memberships, mobile allowances, or free snacks at work.
When you are offered non-mandatory perks and benefits, it is a way to show that the company values and appreciates employees. This can help staff feel more fulfilled. The Society of Human Resource Management found that 92% of employees say their benefits are important to their overall job satisfaction.
When an employer demonstrates to employees that they care about employee's personal needs, it can boost staff morale. This can lead to a more positive workplace environment and increase company loyalty. Satisfied employees are also more eager to do their best at work.
The 2022 Randstad Employer Brand Research Survey in Singapore found that 70% of the respondents ranked "good pay and benefits" as the top draw for employees. Highly skilled individuals often have many job offers. They're likely to choose the company with the best benefits and perks.
When evaluating your benefits package, think about whether it provides you with enough rest and promotes a healthy work-life balance. Ensuring you are healthy and happy is crucial for your effectiveness and productivity. When you maintain good physical and mental health, you're less likely to need sick leave, which not only benefits you personally but also contributes to a more efficient and consistent workplace.
The employee benefits package reflects the company's values and beliefs. It shows that your employer truly cares about your overall well-being and life outside of work. For example, you might have access to family leave to care for your young children or ageing parents. This creates a culture of caring and support within the organization.
Employee benefits also enhance the company's public image, making it more attractive to clients and customers. Clients are more likely to work with a company that values its employees, feeling more confident that the company is committed to their projects and business relationships. Similarly, customers who share the same core values as the company may be more inclined to purchase goods and services from it.
The types of employee benefits available are constantly evolving to meet your needs. Here's a list of benefits you might want to look for in your employee benefits package:
Having a comprehensive health and life insurance package shows that your employer cares about you and your family. Here are descriptions of the different types of insurance benefits you might find:
To be productive, you first need to be healthy. Medical insurance means you don't have to worry about doctor visits and hospitalization costs. It can cover major surgeries, such as brain tumor removal or open-heart surgery, and help offset the costs of chronic or terminal illnesses like kidney failure or cancer. Knowing that your medical expenses will be covered if you face any health issues can provide peace of mind.
Dental insurance covers regular dental checkups and procedures like root canals, extractions, or crowns. It is usually separate from health insurance and ensures your dental health is taken care of.
Optical or vision insurance covers the costs of routine eye exams and new glasses or contact lenses. This insurance supports you in caring for your eyes and maintaining good vision.
In Singapore, the Central Provident Fund (CPF) offers a comprehensive social insurance scheme that covers work-related injuries, disabilities, and death. Through the Dependants’ Protection Scheme and the Disability Income Scheme, CPF provides subsidized medical treatment, rehabilitation services, and financial support. If you suffer from a work-related accident or disease that affects your ability to work, you are eligible for this insurance. Employers may also provide additional disability insurance, ensuring that your beneficiary receives a lump-sum payment in case of permanent disability.
The CPF in Singapore provides financial security to employees in the event of death, including support for dependents through the Dependants' Protection Scheme (DPS). Additionally, employers can offer private life insurance as a voluntary benefit. This extra protection shows your employer’s commitment to your well-being and ensures that your family is financially taken care of should an unfortunate event occur.
In Singapore, retirement plans and pension schemes are primarily managed through the Central Provident Fund (CPF), a comprehensive social security savings plan to which both employees and employers contribute. Here’s an overview of the key components:
It's mandatory to offer annual leave and sick leave, but your company can provide additional types of leave beyond these statutory requirements. Here are the details of different types of paid leave you might benefit from:
Under Singapore's Employment Act, you are entitled to annual leave once you have completed three months of service with your employer. The entitlement increases with your length of service:
Your employer can offer more days of annual leave than the statutory requirement as an added benefit. It is also common for employers to allow you to carry forward a certain amount of unused leave to the following year. Another option you might have is the encashment of unused annual leave, calculated based on your ordinary pay rate. While carrying forward leave and leave encashment are not mandated by law, they are popular incentives that employers can offer to enhance your employment package.
In Singapore, you are entitled to paid sick leave as stipulated by the Employment Act, with eligibility starting after three months of service. Here are the specifics:
To use your sick leave, you must be diagnosed and provided with a medical certificate by a doctor registered with the Singapore Medical Council. For hospitalisation cases, the certificate can also be issued by a government or company-appointed doctor.
If you have not completed six months of service, your sick leave is pro-rated:
During your sick leave, you must be paid your usual salary, provided the sick leave is certified by a qualified doctor and within the entitlement limits. Additionally, some employers may offer more generous sick leave benefits than the minimum required by law, enhancing your welfare and job satisfaction.
For maternity leave, if you are an eligible mother—legally married to the child's father and have worked for your employer for at least three continuous months prior to the birth—you are entitled to 16 weeks of leave. This benefit applies to both your first and second child, with the first eight weeks being employer-paid and the remaining eight weeks funded by the government. From your third child onwards, if your children are Singapore citizens, the government funds all 16 weeks of leave.
For paternity leave, as an eligible father, you are entitled to two weeks of government-paid leave. You must also have been employed for at least three months before the child’s birth and be legally married to the mother. This leave can be taken anytime within the first 12 months of your child's life. Additionally, you have the option to share up to four weeks of the mother’s maternity leave, known as shared parental leave, which requires mutual agreement between both parents. These policies aim to encourage shared parenting responsibilities and support the well-being of your family in Singapore.
You can receive compassionate leave when one of your close family members passes away. This allows you to take paid time off to organize or attend the funeral and grieve your loss. Although it's not mandatory by law for employers to provide compassionate leave, many companies grant two to five days. Providing compassionate leave shows your employer's concern for your well-being and sympathy towards you during a difficult time.
Marriage leave is not a statutory requirement, but your employer can grant it to you to celebrate your wedding day and go on your honeymoon. The typical length of leave is one to three days, giving you time to enjoy this special occasion.
Working remotely, either partially or entirely, has become more common in recent years. Employers can offer flexible work arrangements, such as telecommuting or part-time work, to help you balance your work and personal responsibilities. For example, if you have young children or elderly parents, you may prefer to work from home.
Your company can help you pursue further education by subsidizing tuition fees or offering student loan repayment programs if you want to get a specialized certification, post-graduate diploma, or degree. Employers can also give you one or two years of unpaid leave to become a full-time student. This can help you learn new skills and advance in your career. Employers can also provide training to ensure your skills are up to date, inviting coaches and industry professionals to conduct seminars and workshops. Knowing the company's commitment to investing in you can encourage you to continue working there.
Your employer may offer subsidies for infant care or childcare. They may also provide on-site daycare so you can travel to and from work with your children and see them during lunchtime. This can help you cope with your family obligations and provide peace of mind while you work.
Follow these strategies to create a meaningful and impactful employee benefits package:
Your benefits should be customized to meet your specific needs. Employers can do this by first understanding the demographics of their employees, including ages, family structures, lifestyles, and goals.
For example, if you have many colleagues with young children, your employer might create policies and programs that support parenthood. This could include setting up a childcare facility at the workplace or offering more days of childcare leave. By assessing and addressing your unique needs, your employer can ensure the benefits package is relevant and valuable to you.
It's essential for your employer to stay up to date with all the mandatory employee benefits to ensure compliance. For example, the number of days of paid maternity leave increased from 60 days to 98 days at the start of 2023. Employers should conduct market research to understand the average industry offerings and popular plans. This can help your company understand market needs and stay competitive in its benefits offerings.
Your employer should think about how much the company can afford to spend on benefits programs. If offering a plan for the first time, they should get quotes from potential suppliers to create an estimate. If there is an existing plan, they already have some data to set a budget. As the cost of some benefits may increase, it's important to prepare projections. Additionally, factoring in new hires for the year and the costs of their benefits is crucial. Working with a benefits specialist can guide the company through this process.
Employee benefits and company culture typically go hand in hand. Offering meaningful employee benefits enhances company culture, and the company culture should influence the types of benefits offered. For example, if the company values community engagement, it could give paid time off for volunteering. If the company believes in rewarding hard work, it could give a travel or shopping voucher to the best-performing employee of the month.
Policies are useless if you don't know about them. Your employer can increase awareness of benefits by mentioning them in company newsletters, emails, and Q&A sessions. When onboarding new hires, providing an attractive and informative sheet summarizing the company's benefits is helpful. Regularly communicating these extras can help you access and utilize them.
Your wants and needs may change as you go through different stages of life. Younger employees may be keen on free snacks and travel discounts, while older employees starting families may prioritize policies that let them spend more time at home, such as telecommuting options. Employers should use surveys or focus groups to understand employees' opinions about the company's benefits. Gathering suggestions from you and your colleagues will help enhance the benefits packages to better meet your needs.
Providing employee benefits is crucial for demonstrating appreciation and value to you and your team. These benefits are key in attracting and retaining top talent, positively impacting the company, and enhancing its public image. To keep you satisfied and loyal, your employer should regularly update policies and perks based on the latest industry trends and employee feedback. Staying proactive in enhancing benefits demonstrates the company's commitment to your well-being and satisfaction.
Here are answers to frequently asked questions about this topic: