05 May 2019: With reference to my previous article on "Dissecting Compensation & Benefits: Compensation" (dated 2 May 2019), now let us dissect Benefits. Do bear in mind that this article is written from a Singapore benefits context (especially the example given by me, the author).
Definition:
Benefits can be divided into 3 areas: -
Mandatory Benefits
As a Benefits Specialist, the person need to have a good understanding of what are the mandatory benefits which are compulsory for an employer to provide for their employee. A good source for Singapore employment mandatory benefits can be found at the following government agency website https://www.mom.gov.sg/
Another great source of information is to purchase Mercer WBEG (Worldwide Benefits & Employment Guideline) Report. You can either buy it based on the region e.g., Asia Pacific or by individual country e.g., Singapore, Malaysia, etc. Just a disclaimer, I am not being paid by Mercer for this article. Click the hyperlink to visit mercer website Mercer WBEG
Voluntary Benefits
When it comes to voluntary benefits, most organization will focus on 4 main areas which are: -
To support this task, a typical organization based in Singapore may purchase "country benefits report" from Mercer, Hays Companies, Aon, or SNEF (Singapore National Employers Federation) to benchmark their benefits practice.
Benefits Administration
When it comes to benefits administration, the focus will be on the following:
Definition:
- Benefits are perks offered to employees in addition to salary. Some of the common benefits are medical, disability, and life insurance; retirement benefits; paid leave; flexible work arrangement; and fringe benefits.
- Employee Benefits are programs an employer uses to supplement the cash compensation an employee received.
- Mandatory Benefits
- Voluntary Benefits
- Benefits Administration
As a Benefits Specialist, the person need to have a good understanding of what are the mandatory benefits which are compulsory for an employer to provide for their employee. A good source for Singapore employment mandatory benefits can be found at the following government agency website https://www.mom.gov.sg/
Another great source of information is to purchase Mercer WBEG (Worldwide Benefits & Employment Guideline) Report. You can either buy it based on the region e.g., Asia Pacific or by individual country e.g., Singapore, Malaysia, etc. Just a disclaimer, I am not being paid by Mercer for this article. Click the hyperlink to visit mercer website Mercer WBEG
Voluntary Benefits
When it comes to voluntary benefits, most organization will focus on 4 main areas which are: -
- Healthcare
- Wellness
- Retirement
- Life Management (aka Group Insurance policies, which may include Group Term Life, Group Personal Accident, Group Hospitalization & Surgical, etc.)
To support this task, a typical organization based in Singapore may purchase "country benefits report" from Mercer, Hays Companies, Aon, or SNEF (Singapore National Employers Federation) to benchmark their benefits practice.
Benefits Administration
When it comes to benefits administration, the focus will be on the following:
- Managing Cost: some of the approach that help organization in managing the cost can include employees' contribution (co-payment), waiting period (in Singapore, an employee is eligible to benefits after 3 months of continuous employment with an organization), high deductible plans and wellness focus.
- Flexible Benefits: Giving employees the ownership and choice in benefits, some or all of which may be tax-advantages (do bear in mind that in Singapore, only related medical reimbursement has tax-advantages e.g., dental, immediate family medical cost, traditional Chinese medication (TCM), health screening, etc.). Flexi-benefits involving holiday tour and some insurance reimbursement are taxable.
Source:
- Gregg Learning, 2019
- https://www.mbaskool.com/business-concepts/human-resources-hr-terms
- https://www.onetonline.org
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