WHILE it may seem commonplace these days for companies to provide their staff with some form of medical benefits, about 1 in 8 in Singapore say they are offered none at all. 

According to a survey of 1,029 people commissioned by life insurance company Prudential, 13 per cent of employees at small and medium-sized enterprises (SME) said their companies do not offer coverage for both inpatient and outpatient medical expenses.

This figure is higher for SMEs with 10 or fewer employees on the payroll, with 27 per cent saying they are not entitled to any medical benefits. 

The majority of respondents cited the small size of their company and the high cost of group insurance as reasons why their employers do not provide medical support.

Regarding budgets set aside for medical benefits, almost 2 in 5 SME owners and human resource professionals said no more than S$10,000 is allocated for healthcare coverage for employees per year. 

The online poll, which was conducted this month and the findings released on Monday (Apr 25) surveyed 1,029 Singaporean employees and business owners who work in SMEs with between 1 and 200 employees. 

With awareness of health and protection raised since the pandemic, it is understandable for employees to value medical benefits and appreciate investments in their well-being and future, said Dennis Tan, chief executive officer of Prudential Singapore.

“An ageing workforce coupled with rising healthcare costs are also driving employees to want support in the area of medical protection so that they can focus on their work with greater peace of mind,” said Tan.

Overall, 9 in 10 respondents said they want their employers to provide healthcare coverage. Sixty per cent of employees are more willing to join an SME that does so, and 40 per cent indicated they are more likely to stay in a company that gives them medical benefits.

Apart from medical benefits, SME employees value other benefits as well. Some 85 per cent of respondents said employers should consider it a priority to provide employee benefits and 3 in 5 respondents said they are more likely to join a company if such benefits are offered.

However, about a third (34 per cent) of respondents noted that they are not provided with any employee benefits. This number rose to 45 per cent for SMEs with 10 or fewer employees. 

Similar to the reasons provided for the lack of healthcare coverage, small company size and high costs were stated as reasons why companies do not offer such benefits.

The survey also asked SME employees about their thoughts on digitalisation and found that 4 in 5 respondents are of the opinion that digital transformation is an important factor for business survival. 

However, only about 1 in 5 respondents (21 per cent) said their company is already digital, and they face challenges such as a lack of talent with digital skills, high costs and a lack of training opportunities to do it effectively.

To work around this, steps are being taken to enhance the digital skills of employees. Among respondents, 64 per cent said their company plans to undergo or is on the road to digital transformation.