How Hong Kong SMEs Can Use Employee Benefits to Attract & Retain Top Talent

The SME Hiring Challenge in Hong Kong

Picture this: you’ve just found the perfect candidate for your business. They’re skilled, experienced, and align perfectly with your company culture. But then—they accept an offer from a larger corporation offering better employee benefits. Sound familiar?

For SMEs in Hong Kong, attracting and retaining top talent is a growing challenge. With a competitive job market and rising expectations, salary alone is not enough. Employee benefits can be a strategic tool for SMEs to stand out without significantly increasing costs. This article explores cost-effective ways SMEs can enhance their benefits package to remain competitive.

The Growing Need for Competitive Benefits in Hong Kong

According to Aon’s 2025 Human Capital Employee Sentiment Study, more than half of workers in Hong Kong are considering switching jobs, with 17% feeling undervalued in their current roles—significantly higher than the global average of 13%. A key driver? Dissatisfaction with compensation and benefits.

• 60% of Hong Kong employees believe their compensation is unfair compared to industry standards (versus 37% globally).
• 35% of local employees feel there is inadequate investment in their skill development (versus 17% globally)
• 63% of employees plan to or are considering switching jobs within the next year. (versus 60% globally)

With competitive pay and meaningful benefits identified as the top factors influencing retention, SMEs must rethink their approach to employee rewards to stay ahead in the talent market.

Essential Employee Benefits for SMEs

1. Medical and Health Insurance

Medical benefits remain one of the most valued perks for employees in Hong Kong. Aon’s study found that medical coverage ranked as the second most valued benefit across all generations, with Gen X and Gen Z placing even higher importance on it than Millennials.

• Affordable group health plans via insurance providers or digital health platforms
• Coverage options: General practitioner visits, specialists, physiotherapy, dental
• Additional benefits: Mental health support, Traditional Chinese Medicine (TCM)

Key insight: Rising healthcare costs and an ageing workforce are driving increased demand for comprehensive medical benefits.

2. Paid Time Off and Work-Life Balance Programs

Aon’s study highlights that paid time off is the most valued employee benefit in Hong Kong, underscoring the importance of work-life balance initiatives.

• Increased annual leave options or the ability to buy additional leave days
• Flexible leave policies for personal wellness or caregiving
• Sabbaticals or extended leave options for long-term employees

Providing more flexibility in time off policies can significantly improve employee satisfaction and retention.

3. Retirement Savings and Financial Well-Being

Retirement support is another critical expectation, with 33% of employees stating that employers should help them save for long-term financial needs. Enhancing MPF contributions and offering financial planning support can make a significant impact.

• Matching contributions above the legal requirement (e.g., 7%-10%)
• Offering retirement planning workshops and voluntary savings schemes
• Providing emergency savings fund options

4. Wellness and Mental Health Support

With 28% of employees expecting employers to support their well-being, SMEs must prioritize holistic health initiatives.

• Employee Assistance Programs (EAPs) offering counseling and mental health support
• Wellness stipends covering gym memberships, yoga, or wellness apps
• In-office wellness programs, including meditation sessions and stress management workshops

One in three Hong Kong employees report experiencing workplace stress, highlighting the need for proactive well-being initiatives.

5. Support for Women’s Health and Family Care

20% of employees surveyed emphasized the importance of employer support for women’s health, including maternity, menopause, and menstruation-related benefits. Additionally, 18% expect employers to provide eldercare and family care assistance.

• Fertility and maternity support, including flexible parental leave
• Menopause-friendly workplace policies
• Subsidized eldercare or family caregiving assistance

Employers who integrate inclusive benefits tailored to different life stages will be better positioned to attract and retain diverse talent.

How to Offer Benefits Without Overspending

SMEs do not require large budgets to provide competitive perks. Cost-effective strategies include:

• Leveraging digital benefits platforms, such as MixCare Health, for affordable wellness and insurance plans
• Conducting employee surveys to determine which benefits are most valued
• Prioritizing flexibility over fixed costs, such as offering optional wellness stipends
• Partnering with third-party providers to offer discounts on fitness programs, mental health services, and learning resources

Conclusion: Enhancing Employee Benefits to Attract and Retain Talent

In today’s competitive job market, SMEs cannot afford to overlook employee benefits. From medical coverage to flexible work arrangements and wellness programs, investing in the right benefits can position an SME as a desirable employer in Hong Kong.

Organizations do not have to navigate this alone. At MixCare Health, we provide customizable employee benefits solutions and a diverse range of corporate wellness programs designed specifically for SMEs. Whether you’re looking to introduce sensory mindfulness workshops, aromatherapy DIY sessions, or interactive wellness initiatives, we help businesses foster a healthier, more engaged workforce—without adding to HR’s workload.

Book a free demo today and explore how MixCare can support your team’s well-being, improve retention, and create a thriving workplace culture.