A BIG chunk of perks provided by companies in the Asia-Pacific region are wasted, because almost half of their employees don't see much value in them, says a survey by consulting firm Watson Wyatt.

And the waste is all the more glaring as the cost of perks continues to post double-digit jumps with no signs of easing.

Over 40 per cent of the 278 employers polled in 12 Asia-Pacific countries, including Singapore, think their staff don't appreciate the value of the benefits they offer.

There is a huge gap between what the perks actually cost to bosses, and the value employees see in these benefits, according to Watson Wyatt.

Closing this gap poses a key challenge for employers in designing, implementing and communicating their benefit programmes.

'Given the gap in the value of benefits provided and the perceived value by employees, there is a substantial wastage in the benefits component of the total compensation budget,' says Andrew Heard, Asia-Pacific benefits practice director at Watson Wyatt.

It suggests that companies managing costs only by containing pay hikes here could be missing the mark completely, he adds.

Many employers are not doing much about the problem, though.

According to the survey, over a third of the companies in the Asia-Pacific region have not reviewed their benefits strategy in the past 12 months.

In China and Thailand, the number is close to half. But in Hong Kong, only a quarter of the employers polled were neglectful in reviewing their benefits strategy.

'These findings have grave implications for companies on several levels - cost, employee engagement and attraction and retention of talent,' Watson Wyatt says.

The cost issue is compounded by the financial crisis.

'Cost-cutting measures are already underway in many businesses, regardless of size,' Watson Wyatt says.

'Those that are managing well are the ones that are exercising prudence in all areas of their operations.'

Employee perks have always been an important part of the employment deal - and they make up 20-40 per cent of the total rewards package.

So during 'dynamic' economic times, it is crucial that employers review their benefits and ensure every benefits dollar contributes effectively to the employee value proposition, according to Watson Wyatt's Mr Heard.

'This is to ensure appropriate return on investment for the organisation,' he says.

The survey shows a rising interest in employee-choice perks.

Some 6 per cent of the employers polled were putting a flexible benefit plan in place, while another 15 per cent were considering to adopt one.

Watson Wyatt says that such benefits plans, which empower employees to choose the perks they want, are less wasteful.

'It provides better control over costs, improves employee perception of benefits and thus contributes toward furthering employees' total reward satisfaction and engagement.'