The need to retain and attract topnotch talent has made Philippine companies more open to offering new or expanded forms of compensation and benefits, from increased salaries to rental reimbursements, flexible working hours and even free snacks.
This was among the main findings of a survey of 680 personnel recruitment officers representing local companies of varying sizes and industries conducted by JobStreet by SEEK.
鈥淓mployee satisfaction is also being won by companies through offering accommodation rental reimbursements, flexible working hour, and free snacks. These go hand-in-hand with the trend of companies working on prioritizing employee mental health with a number of them eyeing to offer wellness counseling/talks, employee assistance programs, and mental health day off or medical leave and mental health app subscriptions,鈥� said JobStreet by SEEK in a statement on Friday.Recovery period
The poll conducted in September 2023 also showed that the 89 percent of the companies raised employee salaries in 2023 compared to 78 percent in 2022.In its 鈥�2024 Hiring, Compensation and Benefits Report,鈥� JobStreet also noted that the average salary hike rose to 10.24 percent in 2023 from 7.3 percent the previous year.
鈥淭he year 2023 became a great recovery period for companies. This can be seen in the report鈥檚 data on salary increments offered by hirers,鈥� said JobStreet by SEEK, the leading employment platform in Southeast Asia.
More importantly, it noted, the average salary increase last year surpassed the inflation rate of 6 percent, translating to an actual wage growth or more money in employees鈥� pockets.
鈥淭his means that employees not only regained lost ground but also saw real wage growth, reflecting an improved economic climate and brighter prospects for the workforce,鈥� the report said.
Another trend highlighted in the report is the rise in staff promotions. Companies saying they promoted employees in 2023 rose to 70 percent, from 60 percent in 2022.
Better packages
鈥淭his reflects companies鈥� commitment to both rewarding their employees and providing avenues for career growth, contributing to a more positive and progressive work environment,鈥� it added.
Data from the report also showed that around 12 percent of the surveyed Philippine companies intend to expand the lineup of employee benefits in the next 12 months.
When asked for examples they can consider for expansion, 12 percent of them cited medical insurance; health checkups, 8 percent; dental coverage, 10 percent; personal loans, 7 percent; contribution to social benefits, 9 percent; life insurance, 15 percent; and optical service coverage, 15 percent.
Tax subsidies were picked by 12 percent, pension fund and retirement, 20 percent; mental health treatment, 20 percent; flexible benefits, 14 percent; discounted stock purchase, 7 percent; and stock options, 9 percent.
JobStreet by SEEK said 2024 may be a year when hirers 鈥渨ill need to recalibrate their compensation offerings to be able to attract the best talents available鈥攁n opportunity for employers to expand the benefits and consider other essential factors that candidates are starting to look for.鈥�
Some 14 percent and 13 percent of companies surveyed, for example, are looking to offer menstrual leave and family care leave, respectively, a sign of workplaces becoming more mindful of diversity. Some companies are also looking to offer additional paternity and maternity leaves, graduation leave and community service leave.
Back to office or hybrid?
Other companies surveyed are working to make their employees鈥� mental health a priority and extend medical insurance to their family members. Transportation allowances are also considered to be part of the enhanced benefits.
As for work arrangements, the report revealed that 57 percent of companies surveyed have fully gone back to the office, while 21 percent are adopting a hybrid model with some remote work depending on the job function.
鈥淔or 2024, most companies are expected to adopt a very similar model and are seen to be more than likely here to stay,鈥� it added.
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JobStreet by SEEK noted that 2024 was off to a 鈥減ositive鈥� start in 2024, with 61 percent of hirers surveyed expressing confidence that the job market will continue to be active in the first half of the year, with companies looking forward to hiring new talents and candidates actively seeking jobs.
However, the second half is expected to be more challenging, which hirers attributed to uncertainties around the economic conditions and global events later in the year.
鈥淗irers are therefore expected to get creative in terms of developing a strategic recruitment approach to attract and retain more talents,鈥� it said. 鈥擜lden Monzon