The introduction of the Mandatory Provident Fund (MPF) will force many businesses to reassess employee compensation packages, according to a global human resources consultant.
Hewitt Associates general manager David Gueundjian said the MPF offered the opportunity to tailor packages to employees' needs.
Rather than offering salary increases, employers could in some cases offer better pension or other benefits instead.
Tailoring packages would enhance employees' perceived value of themselves and therefore increase their value to the company.
Mr Gueundjian said employees could choose to opt for more cash and less benefits or vice-versa, depending on circumstances, such as age or family commitments.
A uniform compensation package of salary, pension, car and medical coverage would offer more value to some employees than others.