Medical insurance tops SME employee benefits: Prudential

Whilst pay was cited as the top factor to remain in their job, the survey also noted the importance of non-financial benefits for SME workers.

Remuneration emerged as the main factor for employees in small and medium-sized enterprises (SMEs) to keep their posts, according to a recent survey by Prudential General Insurance Hong Kong Limited.

The poll said that 90% of employees surveyed cited salary as the main reason for them to stay in their jobs in 2023. Still, Prudential said the majority of respondents noted the importance of non-financial factors in their decision to remain. These include job stability (85%), bonding with colleagues/supervisors (81%), and employee benefits (80%).

Prudential also reported that employees surveyed want an average of 5.6% salary increase in 2024. Once they consider their employers’ financial situation and other macroeconomic factors, the average decreases to 3.8%, similar to the 3.6% expected by employees in large enterprises.

However, 42% of the respondents said they are not expecting any raise this year. This is more than the 25% of employees in big corporations, the survey said.

ALSO READ: 4 in 10 employees willing to trade pay raises for flexibility: survey

When asked about job opportunities, Prudential said 35% of SME employees said they are open to such, up from 26% in 2022. But more employees said they still prefer to remain with their current employer at 55%.

Some 62% of respondents indicated slightly higher satisfaction levels with their current employer compared to those in large corporations at 58%. They cited good connection with colleagues, harmonious relationships with superiors, plus equitable compensation, as the key reasons for their contentment, the survey said.

Choosing to work with an SME was also high at 59%, increasing from 41% in 2022. The employees said harmonious relationships with colleagues and a “human touch” in the company culture (54%), less competition among colleagues (46%), and greater freedom in their work (45%) are the perks of working in smaller firms.

In terms of employee benefits, 49% said they are satisfied with what their employer is providing, down from 62% in 2022. Among the protection plans provided by employers, medical insurance coverage (71%) is the most favoured, followed by critical illness insurance coverage (54%) and accident insurance coverage (51%).

Only 59% of the SME employees surveyed said their company provides medical benefits, well below the 80% in large enterprises. Moreover, only 16% of respondents said they can purchase additional voluntary medical coverage at a discounted price, a significant drop from 42% in 2022.