Soaring healthcare costs, shifting workforce priorities and a growing need for flexibility are forcing companies in Singapore to reassess their benefits strategies.

That’s the key message from Mercer Marsh Benefits’ 2025 Health on Demand report, which underscores how businesses need to move from a “one-size-fits-all” approach to tailored packages that reflect a multigenerational, culturally diverse workforce.

The annual study, which surveyed over 18,000 employees across 17 markets, including more than 5,121 people in Asia, highlights a dramatic change in benefits expectations.

Healthcare costs, stress-related health issues and flexible working preferences are putting pressure on companies to respond in smarter, more adaptable ways.

“Basic benefits such as health insurance coverage, parental leave policies, and childcare support are considered most helpful to employees in Singapore and their families,” said Julia Radchenko, Mercer Marsh Benefits health and wellbeing leader for Singapore.

“Additionally, flexible working arrangements and career development opportunities significantly enhance their overall well-being. This creates an opportunity for employers in Singapore to foster a supportive work environment.”

Healthcare pressures undermine wellbeing

With healthcare expenses skyrocketing – the medical trend rate in Singapore jumped 13% in 2024, nearly quintuple the rate of inflation – companies are feeling the pinch. These are not just a bottomline consideration; they affect employees’ wellbeing and loyalty.

About 1 in 3 people with a household income below the median say they are not assured they can afford health care. This situation prompts many to delay treatment, putting their health at risk.

Between 2021 and 2023, 71% of employees put off care, predominantly due to time pressures or the inability to take time off. Furthermore, 74% of men were more likely to delay care than 67% of women, reflecting workplace pressures and policy gaps in addressing health needs.

With an average life expectancy in Singapore of 83 years in 2023, employees will live nearly a tenth of their lives battling ill health. Providing workplace health checks and telehealth services could be a powerful way for companies to ease this pressure and, in effect, strengthen loyalty and reduce future health-related expenses in the process.

Turning a blind eye to men’s health gaps

The data also highlights a hidden challenge: men are experiencing greater stress and health pressures but are less likely to seek help. Half of all men report higher stress than their female colleagues.

Moreover, nearly 60% of Generation Z men say their mental health is suffering, yet only 38% appreciate the value of mental health screenings.

This points to an opportunity for companies to help employees confront stress and psychological pressures more openly. Providing education, reducing stigma and making services more accessible could pay huge dividends – not just in health outcomes, but in productivity and loyalty.

Flexible benefits to match a multigenerational workforce

Today’s workforce is a rich mixture of ages, responsibilities and preferences. The Tripartite Guidelines on Flexible Work Arrangements, introduced in April 2024, reflect a policy shift towards greater flexibility, a move that nearly 47% of employees say is a top priority.

Furthermore, 43% wish for more control over their workplace, whether that means choosing where to work or when.

The data shows a link: 77% of employees say flexible arrangements improve their physical and mental health, which underscores the growing role of flexible benefits in a well-rounded benefits portfolio.

Turning tailored benefits into a powerful retention tool

Different generations have different worries – from young caregivers battling stress and trying to balance responsibilities, to Boomers concerned about retirement and health care in later years.

The “sandwich generation,” or those sandwiched between responsibilities for children and elderly relatives, suffer stress at nearly double the rate of their peers.

Meanwhile, for the two-thirds of employees in Singapore who are from overseas, accessing benefits and understanding their options can be confusing. There’s a dramatic knowledge gap: only 50% of long-term, non-citizen employees know where to find benefits information, against 73% of locals.

“Singapore’s diverse workforce, spanning generations and a significant foreign population, requires personalised benefits to address rising costs and stress,” Radchenko said.

“Flexible work and tailored benefits are critical to meet the unique needs of caregivers, men, and foreign employees in Singapore.”