Beyond the Paycheck: The Changing Nature of Compensation and Benefits Schemes

人才争夺战 工资和经济预测来年预测一个更严格的劳工市场，寻求吸引和留住最优秀的头脑和最熟练的将下来不仅以货币计算。

The battle for talent wages on and with economic forecasts for the coming year predicting an even tighter labour market, the quest to attract and retain the best minds and most skilled will come down not only to monetary terms, but the extras too. Compensation and benefits schemes are increasingly seen as a way to make the difference in developing that all-important holistic package. Take it from the experts. More of them are not only seeing a shift in expectations, but also the importance in studying them so as to better understand, meet and manage the changes. Mark Hall, Vice President, Country General Manager at Kelly Services, noted that compensation and benefits expectations have evolved in the past couple of years to go beyond just a focus on pay. A factor that has influenced this trend is the emphasis people place on non-financial rewards. According to the 2012 Kelly Global Workforce Index, 71 percent of Singaporeans across all generations placed personal growth and fulfilment as more important than compensation and benefits when choosing jobs. He added, While remuneration remains a key consideration, a recent shift has seen more people place a higher importance on non-financial rewards such as work flexibility, career development programmes and clear career paths. This was borne out by the fi ndings of their latest Kelly Services Singapore Employment Outlook and Salary Guide 2012/13. Referring to it, Hall said, Although demand for talent across the Professional and Technical segments remains high, employers do not seem to be increasing salaries to attract and retain key hires in the continuing war for talent This is a reflection of the changing structure of employment packages influenced by employee attitudes towards compensation and benefi ts. Gwen Lim, Manager, HR Specialist Recruitment Team at Robert Walters Singapore, has also noted this significant shift. Compensation and benefits expectations have increased, despite the market being less robust. This is especially so with Singapore being the regional hub for multinational corporations, where retention of key talents is a challenge and increasingly a focus amongst HR practitioners. The talent crunch in Asia, coupled with the demand for talent in Singapore, is a key factor in driving innovative and flexible compensation and benefi ts strategies to retain talent, she added. HR practitioners also have had to think outside the box about how to develop these extras in a way that fit the diverse profile of employees, she said, Companies are often seeking creative ways to link compensation and benefits to variable incentive plans or intangible benefits such as work-life balance to cater to different individuals. A QUESTION OF CHANGING EXPECTATIONS Much of this shift stems from changing expectations. The ways in which people view work today have evolved to be more than a means to an end. For one, Lim said, younger professionals tend to link compensation to work satisfaction. Career progression, training, and the brand name of the company are important to them. More experienced professionals with

12 years experience and above tend to value the size and/or scope of the role and company more than their compensation. Although expectations vary, these professionals tend to consider other factors, such as work life balance and childcare benefi ts, at this stage of their career. These different expectations across the various demographics are in fact captured by generational preferences of how people expect to be rewarded for good performance at work. Hall observed that the priorities and perspectives of different generations are a strong force in shaping what these groups expect from employers. For the first time the workforce is made up of four generations, each with its own distinct values, beliefs, and attitudes, he said. A White Paper published by Kelly Services in September 2012 studied some of the key differences and expectations of the younger generation a segment called Generation Y which forms the newest and growing segment of the workforce. Generation Y (1981-2000) shows growing preference for a promotion, and a declining interest in a financial reward compared to the Baby Boomers (1946-1960), said Hall, While

10 percent less of Generation Y prefer a fi nancial reward and

14 per cent more prefer a promotion for good performance compared to the Baby Boomers. This segment also shows a strong preference for doing meaningful work, using technology to support a fl exible work schedule, and achieving a work-life balance, Hall went on to observe, They respond well to initiatives such as having a mentor within the company, being recognised frequently for their achievements and having a clear career path set out. Such endeavours, which are straightforward to implement and unlikely to dramatically alter the dynamic of the workplace, are a good way for HR to address the diversity, aligning individual goals with organisational goals and using it to gain a competitive advantage. EVOLVING THE WAY WE WORK AND REWARD To stay on top of this trend and keep ahead of the curve on the talent war, companies must ensure their HR policies do in fact offer suffi cient and relevant compensation and benefi ts schemes. Lim observed, As salary benchmarks grow increasingly transparent, it is vital for companies to manage the expectations of employees according to the specifi c industry or market their business operates in. Child education support, training opportunities, car loans, gym memberships and so on are sometimes considered part of employees remuneration expectations. Hall echoed these sentiments, By recognising the generational priorities and perspectives, HR will also be able to advise managers how best to engage with and motivate employees with a view to increasing performance and reducing turnover By understanding this trend, HR will better placed to strategically retain and attract talent. The key in achieving a meaningful compensation and benefi ts scheme is to ensure non-monetary rewards are relevant the different profi les of workers. One approach that has been welcomed in Singapore is to option to work from home. Singapore in fact has one of the highest percentages of employees working from home, according to the survey fi ndings ofrecruitment fi rm, Robert Half. Stella Tang, Director, Robert Half Singapore said offering fl exible work arrangements to existing and prospective employees was a direct response by employers to secure an edge in the battle to retain talent. She said, Offering the opportunity to work from home is an attractive way to attract and retain talent. For professionals with family commitments who cannot commit to working in an offi ce fulltime, the option to work from home allows them to contribute their skills and continue with their career. In its survey of 1,777 HR Directors across

13 countries (including 100 respondents from Singapore), the study found that 87 per cent of Singapore employers allow their staff to work from home, compared to the global average of 79 per cent. The move to embrace work-life harmony was seen as a way to improve productivity and employee retention. Comparing the public and private sectors, the survey found that the private sector was closing the gap. 91 per cent of public sector can have the option to work from home versus 88 per cent of empl