Benefits Are Integral in Recruitment
Attracting, hiring, and retaining high quality candidates in Thailand requires more than a competitive salary and company reputation. A sizeable salary may catch a candidate’s attention. Also, a company’s reputation and work environment will also play a part in appealing to a potential hire, whether it is a multinational corporation or a small start-up. What will often set an employer apart from the rest are the employee benefits they offer. In Thailand, this can be added financial assistance, but it can also be programmes and perks that promote teambuilding and work-life balance.
RLC Recruitment is expert in advising companies on compensation packages to draw and maintain the best candidates. Here we offer an overview of what candidates in Thailand may expect from their employers.
Why are benefits important?
At the recruiting state, generous benefits and perks are the icing on the cake for highly qualified candidates who may be fielding multiple offers. There may be occasions when a benefits package counterbalances a lower salary. A thoughtful set of benefits could communicate a company’s interest and investment in an employee’s wellbeing, from health and family life to career growth and skills development, better than an interview or a competitive salary.
This may be key as, even during uncertain economic times, companies are expecting to increase salaries. Projections for 2021 by Willis Towers Watson indicate around 87% of companies in Asia Pacific plan on increases of around 5.3%. Companies looking at new or replacement hires need to keep competitive.
So it is important to keep in mind that candidates may add the value of benefits and allowances to the base salary in order to compare offers from different employers. Often the perceived costs that they add are lower than the actual cost to the company. This means that companies that offer ample benefits have a competitive edge without increasing payrolls directly.
Once hired, these benefits will help retain employees and encourage them to perform at their most optimal levels as they look forward to increases in their allowances. With perks that are work-related, companies can foster a sense of camaraderie and engagement, cultivating a culture that retains employees.
What are some examples of benefits?
Please note that the benefits discussed here are generally offered in Thailand from executive level to skill technician. The difference would be in the value or extent of benefits depending on position at company.
Under Thai law, there are a number of benefits that employers are required to offer their employees. These include 30 days of medical leave, generous by most international standards, as well as annual leave of six working days after one year of employment. Other leaves include maternity leave (paternity leave is not mandated) as well as leave for employees entering monkhood, which is a tradition among Buddhists. There are also social security benefits that include medical care, workman’s compensation, and death benefits.
To ensure compliance with benefits mandated by law, you should consult an employment expert for the most recent updates.
Expected additional benefits
In addition to the obligatory benefits employers must offer, most companies will sweeten their employment packages with special allowances and other extras. These could be expanded medical and dental coverage, especially that which includes family members. For employees that must travel for their work, or even to assist staff with their commutes, some offer gas or transportation allowances, as well as meal per diems. In this connected world we live in, employers may also offer reimbursement for mobile phone plans.
Finally, there are the bonuses. In Thailand, most employees will expect some form of year-end bonus, if not fixed, then variable or merit based. Most employers understand the importance of bonuses, as revealed by a recent Mercer survey where, even with the financial impacts of the COVID pandemic, only 5% of respondents did not provide bonuses for 2020.
Other fringe benefits
Beyond the typical benefits outlined above, many employers offer creative perks and incentives to foster good will as well as develop their teams’ skills and performance.
Furthermore, in a recent salary review, RLC identified that while fixed and performance bonuses are the most common benefits offered by employers to attract talent, many companies have become much more innovative when it comes to unique benefits that set them ahead of other employers.
These could include:
Training and seminars. This could be inhouse events with refreshments meals, or they could take place offsite, for an added bonus of company-sponsored travel.
Free snacks or lunches. Pizza Fridays or afternoon fruit plates are a small gesture that can go a long way.
Flexible work hours or work from home arrangements. Many in the workforce now are appreciating the option to set their own hours and locations, and many employers benefit from better performance.
Discounts on products. This could include products manufactured by company or allowing employees access to company discounts for such purchases as computers or branded products.
Distribution or allowance for rice and household products. This is a step beyond discounts but may be beneficial in the long run.
Tickets for movies or sporting events. This could be a splurge by the company or sharing in access that may be reserved for higher level executives.
Company-sponsored trips. Instead of only traveling for training or seminars, companies could offer incentive trips for high performers or even plan outings for entire staff or by departments as their budgets allow.
Company sporting activities. Companies could sponsor charitable fun runs or form teams for friendly matches between departments or with other companies in sports like football or volleyball.
Gen X to millennials: Factors that influence preferences
This discussion is by no means exhaustive. There are many combinations and permutations of benefits that can be crafted to attract and retain talent. Essential in this determination is understanding employee needs. Age, education, marital status, personal situations are just a few factors to consider. Furthermore, Gen X, Gen Y, millennials, baby boomers – the generation employees are from may influence their priorities as well. You need to be aware and understand what they expect so that you can customise the most appealing benefit package.
RLC Recruitment Understands Benefits
RLC has vast experience advising companies in Thailand on recruitment, including on how to tailor compensation and benefits to attract talent and develop employees. We understand how well-conceived packages can draw the best talent and inspire engagement for talent optimisation. If you would like to discuss your recruitment and compensation strategies with one of our experts, please contact RLC today.