By Ashutosh Agarwal, Manager, Global Benefits, GoGlobal
As India’s economy continues to grow rapidly, attracting and retaining top talent is becoming increasingly competitive. The 2024 Mercer Global Talent Trends report highlights that enhancing the employee experience (EX) and employee value proposition (EVP) is a top priority for HR managers in India, with 56% identifying this as a key focus area. In addition, 45% of HR professionals are investing more in benefits to improve physical and mental health.
These sentiments recognize the critical role of a well-rounded benefits package in India’s dynamic job market. While statutory benefits provide a necessary foundation, they often do not cover all employee needs. To bridge these gaps and stay competitive, many employers in India are offering supplemental benefits.
In this blog post, we explore some of the most popular supplemental benefits offered by employers in India.
Providing enhanced private medical insurance helps everyone
Healthcare remains a significant concern for employees in India. Out-of-pocket health expenses account for nearly two-thirds (62.6%) of India’s total health expenditures – one of the highest in the world.
In this context, providing robust healthcare options is essential. Basic private medical insurance, while not statutory, is provided by around 99.9% of employers in India. These plans often include additional coverage for dental, vision, accident, disability, hospitalization and long-term care. They may also cover the employee’s spouse, children and parents.
Some plans also include mental health services, acknowledging the increasing concern over poor mental health among employees. According to data from Deloitte, this issue costs Indian employers approximately $14 billion annually due to absenteeism and turnover.
By covering these additional health needs, employers can significantly alleviate financial stress for employees and their families.
Offering additional insurance coverage to protect family members
Many companies in India offer private life insurance and accidental death and dismemberment (AD&D) plans as supplemental benefits. These plans are particularly valued in India, where family well-being is a significant cultural priority.
Life insurance provides financial protection to an employee’s dependents in the unfortunate event of death. AD&D plans offer coverage for serious injuries that could impact an employee’s ability to work.
By incorporating these plans into their benefits package, employers provide employees with peace of mind. At the same time, they demonstrate a strong commitment to the long-term welfare of their employees and their families.
Protecting employees when they travel abroad
With India’s position as a major player in the global business arena, many employees are required to travel frequently for work.
Travel insurance is a supplemental benefit that ensures employees are covered in accidents or health issues during business trips. This benefit is particularly valuable for companies with a global presence or those that engage in frequent cross-border transactions.
Offering travel insurance helps mitigate risks and ensure employees feel secure and supported – even when they are away from home.
Promoting wellness and work-life balance
To promote a healthier work environment and reduce stress, many companies in India are investing in wellness programs and work-life balance initiatives. These programs can include gym memberships, yoga classes, mental health support and wellness workshops.
Providing access to these resources can lead to higher employee satisfaction and productivity, as well as lower healthcare costs in the long run.
Additionally, flexible working arrangements, such as remote work options and flexible hours, are becoming increasingly popular in India. The country is outpacing its neighbors through Asia Pacific in offering access to flexible work arrangements, according to data published by ADP.
These policies allow employees to better balance their professional and personal lives, reducing burnout and increasing engagement.
Increasing financial benefits and perks
Financial security is a major concern for many employees in India. To address this, employers are increasingly offering financial benefits such as performance bonuses, stock options and equity grants. These incentives not only reward the tenure of senior employees but also align their interests with the company’s long-term success. For example, performance bonuses can foster a culture of excellence and accountability by rewarding individual or team achievements.
Employers may provide perks such as meal vouchers, transportation allowances and remote work stipends. These perks not only enhance the overall compensation package but also contribute to a more comfortable and convenient work environment.
Encouraging professional development opportunities
Investing in employees’ professional growth is another effective way to enhance the overall benefits package. Many companies in India offer training programs, workshops and courses that allow employees to develop new skills and advance in their careers.
Some employers also provide education assistance, such as tuition reimbursement for further education or certification programs. These opportunities not only improve employee satisfaction but also build a more skilled and capable workforce.
Employers who prioritize professional development demonstrate a commitment to their employees’ long-term success. This can foster loyalty and reduce turnover. After all, according to Harvard Business Review, employees are more likely to stay with a company that invests in their growth and development.
Filling gaps and building a resilient workforce in India
Navigating the landscape of employee benefits in India requires a strategic approach that goes beyond statutory compliance.
With only 68% of companies in India offering market-competitive benefits and just 43% tailoring benefits to their specific workforce, there is considerable room for improvement. Employers have a significant opportunity to differentiate themselves by creating a resonant employee benefits package that highlights their unique value proposition.
For global companies operating in India, understanding and implementing these supplemental benefits can be a game-changer. Partnering with local experts or leveraging a global HR platform can help navigate the complexities of Indian labor laws and ensure that your benefits strategy aligns with both legal requirements and employee expectations.
Investing in a well-rounded benefits program tailored to the needs of your workforce is essential for sustainable business success in India’s dynamic and fast-growing market.
Learn more about regulations and hiring in India here: Hire in India | GoGlobal
Contact us today to discover how the GoGlobal Global Benefits Team can help you design benefits that fuel business expansion and hiring in India.