Are your employee benefits effective? 6 signs to look out for that show they are making a positive impact.

Employee benefits are a telltale sign of how much an organisation values the hard work and wellbeing of talent. In Singapore, 32% of employees said that higher compensation and better benefits are the top changes they want to see in 2025.¹ 

But what exactly does “better” really look like? How do HR managers know for sure that their employee benefits are working?

With a diverse workforce, it can be tricky to create a benefits portfolio that meets different employee needs. For HR teams juggling multiple roles, it helps to know which outcomes matter most. Here are the top six signs that your benefits are making a positive impact:

1. Recruitment of quality talent

In Singapore, where about 31% of employees planned to switch jobs in the first half of 2025, candidates are looking beyond salary.² They assess the full package, from healthcare to workplace flexibility and wellbeing support. That’s why the ability to recruit top talent is a strong sign your benefits programme is working. When new hires ask about benefits and accept your offer partly because of them, that’s proof your programme resonates.

A benefits programme that hits the mark tips the recruitment scales in your favour. The most effective programmes meet diverse needs rather than rely on a single approach. Our FlexEasy solution, for example, offers employee options such as preventive care, gym memberships, optical services, and non-insured medical expenses. Customisation signals to candidates that you invest in their wellbeing choices.

2. Reduced absenteeism 

Absenteeism is a hidden cost that drains productivity. In Singapore, burnout is relatively high, making employees prone to frequent absence. About 62% of employees felt burnt out in 2022, with a minimal improvement of 61% in 2024.³ Absenteeism may be a sign that benefits aren’t addressing employee needs.

On the other hand, low absence indicates that employees are happy and healthy enough to go to work. It shows how well your benefits may help alleviate sickness, stress, burnout and other causes for absenteeism,⁴ allowing people to be productive at their jobs.

Preventive care and wellbeing initiatives play a role in promoting healthier lifestyles among employees. When coupled with group insurance that covers medical needs, critical illness, personal accident, and work injury compensation, these initiatives can contribute to reduced short-term sick days and long-term health claims.

3. Retention of high performers 

Can your employee benefits make the top performers stay? These employees drive growth and innovation, but they are also quick to move on if their needs go unmet. When high performers choose to stay, it’s a clear sign that they feel valued in your organisation and find no compelling reason to leave.

High-vitality employees – or those who enjoy financial, physical, social, mental, and environmental well-being – are especially loyal. About 89% of high-vitality employees feel enthusiastic about their roles and 82% are satisfied with their work. They are far less likely to seek new jobs.⁵

A benefits package that fosters a culture of care and ensures long-term stability helps create this vitality, making it easier to retain talent and sustain organisational performance.

4. Improved benefits utilisation

How interested are your employees in using specific benefits? Benefits only deliver value if people use them. Utilisation of benefits is a gauge to determine which offerings resonate with employees and which ones need replacing. Low engagement could mean the benefits don’t match your people’s needs and expectations.

HR teams need to have a bird’s-eye view of how benefits are used. Platforms like MediHub offer data about healthcare benefits utilisation even for hundreds of employees under a group insurance plan. By reviewing this data, you can gain insights into how to reduce admin work, improve claims tracking, and refine your offerings.

For employees, MediHub simplifies access through a single app for claims, cashless clinic visits, telemedicine, and coverage details. This convenience encourages employees to take full advantage of their benefits.

5. Fewer disputes or delays in claims processing 

Nothing undermines trust in a benefits plan faster than long delays or claims disputes. Smooth, efficient claims processing is a sign that your benefit administration is effective, and employees can get support when they need it most. Fewer disputes and delays mean your benefits are easily claimable.

Using technology to process claims inquiries can take a huge weight off the shoulders for HR teams. For example, MediHub helps ensure employees can file claims without needing HR at every step and receive payments without unnecessary delay. A 24/7 medical concierge can handle enquiries, arrange referrals, and provide real-time assistance. Employees can manage claims, access panel clinics, and consult GPs virtually through the app. 

When employees know their claims will be processed quickly and fairly, they gain confidence in the benefits you offer. And when you spend less time troubleshooting, you have more time to focus on strategic HR priorities.

6. Increased employee engagement and satisfaction

Do your offerings keep employees motivated about their jobs? Engaged, satisfied employees are the clearest sign of a successful benefits strategy. When organisations address personal concerns such as healthcare costs or financial protection, people can focus their energy on doing their best work.

Effective employee benefits programmes go beyond covering medical bills. They support physical, mental, and financial wellbeing while motivating employees through collaboration, career growth, and flexibility.⁶

Howden’s approach integrates wellbeing solutions such as health screenings, wellbeing talks, and flexible benefits options, all designed to reduce stress and boost morale. When employees feel supported, they’re more engaged, motivated, and loyal, helping to build a positive workplace culture.

Enhance your employee benefits programme

Effective benefits management considers employee wellbeing, productivity, and satisfaction. A strong employee benefits strategy delivers visible results: healthier employees, lower absenteeism, stronger retention, and higher engagement.

Achieving the six outcomes listed above is the litmus test for a job well done among HR managers. These outcomes spell success for a company’s employee benefits portfolio. By tracking them, you can better understand how modifications to the selection of benefits affect employee health and performance.

Do you want to identify the specific benefits of making a positive impact on your employees as well as your business? Contact us to learn how these outcomes are attributable to your existing employee benefits. Learn how to identify and track your desired outcomes easily.

¹HRD, Over half of Singapore workers considering second job to boost earnings: survey
²Randstad, Future of work 2025: building a resilient workforce through employer branding and employee experience.
³HR Asia, Majority of Singaporean employees are still burnt out lacking mental health support
⁴Edstellar, Understanding Workplace Absenteeism: Causes, Impact & Prevention
⁵HRM Asia, Employee vitality key to talent retention amidst Singapore’s skills shortage
⁶The Access Group, Employee Engagement: A Guide to Enhancing Employee Participation in Singapore