A strategic compensation and benefits approach is a top concern for many organisations – both globally and in Southeast Asia specifically. A significant number of organisations in the region – approximately 15% across Indonesia, Malaysia, Thailand and Vietnam, and as high as 19.6% in Singapore – are under pressure to implement, develop, or innovate a compensation strategy as a result of rising attrition rates since 2022. Other global developments, such as inflation and a possible imminent recession, cause concern for many companies that may be affected by salary fluctuations.
A report by management consulting firm Aon’s Asia Newsroom found that salaries in Southeast Asia are likely to increase in 2023, indicating that pay effectiveness is a concern over the long term. Businesses must consider implementing strong compensation and benefit programmes that can remain adaptable in the face of change. This can be done more effectively with the help of technology.
The right HR technology applications benefit Southeast Asian companies looking to attract top talent, reduce employee turnover, and increase organisational performance. Strategic compensation planning is becoming increasingly more important for companies that seek to establish themselves as top performers in their industry. It requires more than basic salary and market data. Factors such as incentive plans, candidate offers, rewards and salary reviews complicate a strategy that needs to be handled with finesse.
Compensation management software, such as Singapore-based Compport, can simplify the process, allowing companies to assess their budgets with agility and transparency. By streamlining their decision-making process, companies can improve efficiency. With a constant stream of HR analytics and data uploaded to the company’s cloud, a software-as-a-service (SaaS) platform such as Compport provides a clear view of employee turnover trends. When it is integrated with other HR technology, such as a human resource information system (which can centralise employee data and generate comprehensive reports), it can help HR professionals to form detailed insights to offer both candidates and employees a balanced salary.
Salary raises are not the only option to attract and retain talent. More companies are finding that diverse and flexible non-monetary benefits packages affect candidates when they choose their place of employment. Other benefits and perks offered to employees can include wellness programmes, work-from-home stipends, health insurance, and the promise of career advancement opportunities. These perks are what many skilled workers seek out, a trend reflected in the 41% of employees who left their company due to lack of career development (according to the McKinsey 2022 Great Attrition, Great Attraction 2.0 global study). Providing employees a choice of the benefits they accept is crucial to their wellbeing – both physical and mental.
Benefits administration software that comes in the form of applications, such as Thanks, or integrative platforms such as Vision Direct Club, also gives HR professionals tools to introduce, verify and manage a range of employee benefits. Since benefits can encompass a multitude of perks, this software gives HR teams the advantage of curating packages that suit an individual’s needs. As the market evolves in Southeast Asia, a comprehensive compensation and benefits approach is a concrete way for companies to stay ahead of competition and build a strong relationship with their workforce. As rising talent’s demands in terms of incentives change, HR can use software to their advantage – backing your compensation strategy with data and keeping it up-to-date.
