When the CEO of a leading F&B group told me, “Tony, we don’t just need someone who can do the job we need someone who gets our culture,” it was after a year-long, frustrating search for their Marketing Director. That conversation changed everything. It crystallized a truth I’ve seen confirmed in my 7+ years of executive recruitment: executives no longer move for salary alone.
The decision often comes down to the full compensation package, where employee benefits signal whether a company truly invests in its people. Many employers treat benefits as a compliance checkbox, completely missing their strategic power to attract and retain the leaders who will drive their business forward.
At Luminare Consulting, we’ve seen firsthand how a thoughtful balance of mandatory and voluntary benefits can be the deciding factor in a competitive hiring market. This is about understanding the baseline, then building a strategic advantage on top of it.
Other benefits beyond salary and basic compliance, such as personalized wellness programs and flexible work options, often make the difference in winning top executive talent.
Key Takeaways:
From my experience closing complex searches, the conversation about the benefits package is where you truly see a company's philosophy on its people. It's a topic that goes far beyond payroll. We need to distinguish between what you have to offer and what you choose to offer, because in that choice lies your competitive edge.
Developing tailored employee benefits plans is essential to effectively attract and retain top executive talent. Among these, common employee benefits such as health insurance, retirement plans, and paid time off serve as the foundation, but it is the thoughtfully selected voluntary perks that truly differentiate an employer in the competitive market.
Mandatory employee benefits are the non-negotiable, government-mandated protections that every employer in Indonesia must provide for their employees. Think of these as the foundation of your social contract governing employment.
This primarily includes contributions to social security programs BPJS Ketenagakerjaan (covering work accidents, old age, and death benefits) and BPJS Kesehatan (providing essential health insurance). These are the absolute baseline. For any senior executive, local or expatriate, their existence is assumed.
Failing to provide them properly isn't just a red flag; it's a non-starter that speaks volumes about the company's stability and integrity. They ensure compliance with employee rights, but they do not, on their own, attract a high-caliber leader.
This is where the real strategy comes into play. Voluntary benefits, often called fringe benefits, are the perks and programs a company chooses to offer beyond its legal obligations. This is how organizations demonstrate their culture and commitment to employee well-being.
The spectrum is broad, ranging from flexible working hours and additional life insurance to executive wellness programs, profit-sharing schemes, and generous paid leave policies including vacation days. What I've learned from working with Indonesian market leaders is that these additional benefits are the elements that create a compelling narrative.
They answer the unspoken questions a candidate has: Does this company care about my health? My family? My work-life balance? This is the toolkit you use to build a truly attractive benefits package that stands out.
The distinction between mandatory and voluntary employee benefits is fundamentally about mindset. Mandatory benefits are about risk mitigation avoiding legal penalties and reputational damage. Voluntary benefits are about investment investing in the people who will drive your company's growth.
A recent study confirms that factors like a positive work environment and job satisfaction are critical drivers for employee retention. When CEOs and HR leaders see voluntary benefits not as a cost but as a strategic tool, they shift from a defensive, compliance-based posture to an offensive, talent-attraction strategy.
This is the difference between filling a seat and securing a long-term strategic partner for your leadership team. Importantly, voluntary benefits often enhance an employee's gross income in a non-cash form, providing added value beyond base wages.
In the Indonesian market, relationships and a sense of belonging matter immensely. A high salary might get a candidate’s attention, but it's the thoughtful, well-structured employee benefits package that often secures their commitment. It’s the clearest signal that an employer understands the holistic needs of its leaders beyond the 9-to-5 job.
What I always tell clients is that the executive market operates on a different set of expectations. While a standard insurance plan is good, top-tier leaders tend to value plans that also cover dependents and offer generous outpatient or maternity benefits.
While a standard insurance plan is good, a top-tier leader is looking for comprehensive international coverage for themselves and their family. The health benefits employers offer are a major differentiator. (will be deleted)
Beyond that, we see a few key benefits becoming powerful attractors. Stock options (ESOPs) and other retirement plans are increasingly common, giving leaders a tangible stake in the company’s future. Education allowances and even scholarship programs are also critical, showing a commitment to their continued growth.
And increasingly, sophisticated wellness programs that include mental health support and executive coaching are what separate forward-thinking employers from the rest. Additionally, in today’s market, flexibility such as hybrid working arrangements where employees can work from home several days a week is highly valued by executives. These aren’t just additional perks; they are central to an executive’s decision-making process.
What works in Singapore doesn't always translate to Jakarta. Multinational companies often enter the Indonesian market with a standardized global benefits plan, which can be a strong starting point. However, the most successful employers adapt these plans with local nuances.
For example, providing a company car and driver is one of the most valued employee perks for an executive in Indonesia due to traffic and infrastructure challenges. In contrast, small businesses might not have the budget for that but can compete by offering greater flexibility, remote work options, or more aggressive equity packages.
Understanding these local market dynamics means we have to tailor the benefits strategy to be both competitive and culturally relevant.
The breakthrough came when we realized the real challenge wasn't just the skills gap it was the value proposition gap. A salary increase is a transaction; a thoughtful employee benefits package is a relationship-builder.
When assisting a recent Finance Controller search in Surabaya, our candidate was weighing two offers one from our manufacturing client and another from an external company offering a higher fixed salary.
He ultimately chose our client’s offer because it provided flexible working arrangements, comprehensive family medical coverage, and family-inclusive company gatherings.
These benefits demonstrated the employer’s genuine commitment to both the employee and their family a factor that outweighed salary alone.
When we tackled the OTA design leadership search, our client was competing fiercely for a small pool of niche talent.
Instead of just bumping the regular salary, we helped them frame a package that included flexible work policies and a substantial budget for international design conferences. This approach changed everything for our client. (will be deleted)
According to a study in the Asia Pacific Journal of Human Resources (2023), access to work-family policies like flexible hours has a powerful indirect impact on job performance because it significantly boosts employee well-being.
This shows that certain benefits create loyalty and employee satisfaction in a way that an extra 10% on the gross income rarely can, leading to better employee retention.
After placing hundreds of candidates, I've learned that a one-size-fits-all benefits plan is a recipe for mediocrity. To truly engage and retain executive-level employees, the approach must be strategic, personalized, and reflective of the company's deepest values.
It's about designing a system that makes your most critical people feel seen, valued, and supported.
The question I ask every hiring manager is: "What does this specific role need to feel secure and motivated?" The answer is different for a CFO than for a Head of Product. For a C-suite executive, retirement benefits should align with long-term wealth creation; think sophisticated equity plans and financial planning services.
For senior managers, the focus might be more on career growth and work-life integration premium health insurance for the family, including comprehensive dental coverage and other group insurance, significant training budgets, and flexible work schedules.
By tailoring the employee benefits package, you're not just offering perks; you're creating a customized career path that makes it much harder for a competitor to turn their head.
In the Indonesian market, relationships matter more than almost anything, and benefits that support an executive's family are deeply resonant. Comprehensive health insurance that covers dependents and offers smooth reimbursement processes is a major factor, ensuring access to quality medical treatment without hassle.
International health insurance that covers dependents without hassle is a major factor, ensuring access to quality medical treatment and reimbursement for medical expenses. (will be deleted)
Health insurance benefits like these are often the cornerstone of a competitive employee benefits package, providing peace of mind and security. Another is housing or a housing allowance, especially for expatriate talent or those relocating to Jakarta.
From a market intelligence perspective, one of the highest-impact benefits we’re seeing is flexible working arrangements. Instead of enforcing rigid office attendance, offering hybrid work options can be a powerful negotiation tool. It demonstrates trust and a results-oriented mindset from day one, setting the stage for a long and productive relationship.
From a market intelligence perspective, one of the highest-impact benefits we're seeing is flexible equity.
Instead of a rigid vesting schedule, offering a structure that allows for some customization can be a powerful negotiation tool. It demonstrates trust and a partnership mindset from day one, setting the stage for a long and productive relationship. (will be deleted)
When supporting a manufacturing client in hiring a Finance Controller in Surabaya, we encountered a case that highlights how family-oriented benefits can influence executive decision-making.
Our shortlisted candidate received two offers one from our client and another from an external company offering a higher fixed salary.
However, he ultimately chose our client’s offer because of its flexible working arrangement (hybrid) and comprehensive family benefits, including life insurance, medical coverage for spouse and children, and company gatherings where families are welcome.
These benefits signaled that the company prioritizes not only the employee’s professional growth but also their family’s well-being a key cultural value in Indonesia. Research in the International Journal of Environmental Research and Public Health (2022) supports this, showing that family-supportive work environments enhance employee retention and satisfaction.
When we closed the F&B Marketing Director role after it had been vacant for over a year, the key was cultural alignment. The CEO wanted a leader who understood their "family-first" ethos. This was reflected in their voluntary benefits, which included extended paternity leave and education allowances for children.
These family-focused perks were more than just line items; they were proof of the company’s culture. Research in the International Journal of Environmental Research and Public Health (2022) consistently shows a positive relationship between a supportive work environment and employee retention, which is why these cultural nuances are so critical.
Additionally, offering comprehensive health plans tailored to executives and their families further underscores the company’s commitment to employee well-being and security. (will be deleted)
While it varies, a comprehensive, international medical insurance plan for the executive and their entire family is consistently the most critical non-negotiable.
It addresses a fundamental need for security and removes a major source of potential stress, signaling that the company genuinely cares for their employee well-being and that of their loved ones.
Smaller companies can compete effectively by focusing on flexibility and equity. While you may not be able to offer the same extensive insurance plans, providing benefits like fully flexible work hours, remote work options, or a more significant share of stock options can be highly attractive.
These employee perks often appeal to an executive's desire for autonomy and a direct stake in the company's success.
The first step is to listen. Conduct confidential surveys or one-on-one conversations with your current leadership team to understand what they truly value and where the current employee benefits package falls short.
From my experience closing complex searches, company leaders are often surprised by what they hear. This internal feedback is far more valuable than simply copying what competitors offer and allows you to invest in employee benefits that will have the greatest impact on retention.
