SG firms cite benefit costs, talent war, and experience as top concerns

Mental health support emerged as a leading priority, with 52% of employers planning to enhance their mental health benefits.

Rising employee benefit costs, fierce competition for talent, and pressure to enhance the employee experience were seen as the top three concerns for companies in Singapore, according to a survey.

According to WTW, companies are under increasing strain to strike a balance between cost control and talent retention, especially in markets like Singapore where demand for skilled workers remains high.

The survey, conducted between March and April 2025, gathered insights from nearly 2,000 employers across 20 Asia Pacific markets, including Singapore.

Mental health support emerged as a leading priority, with 52% of employers planning to enhance their mental health benefits over the next three years. Other focus areas include health benefits (50%) and financial wellbeing programmes (28%).

Employers are also expanding support for diverse health needs. A growing number are planning to introduce comprehensive caregiver leave (33%, up from 17%), women’s health-related medical benefits (33%, up from 20%), and menopause-specific policies (25%, up from 4%).

Managing healthcare costs remains a top challenge, especially with medical inflation in Asia Pacific projected to hit 12.3% in 2025.

To address this, 51% of employers are looking to improve value from healthcare vendors, while 38% plan to implement targeted programmes for high-cost health conditions. Over 80% of those employers expect to scale up such initiatives in the next three years.

Overall, 61% of companies in the region, including Singapore, intend to rebalance their benefits spending—cutting or adjusting underused offerings and investing more in areas that matter most to employees.