The provision of employee benefits is growing rapidly in Asia, according to experts.

Demographic trends such as urbanization, a growing middle class and rapidly aging populations are fueling the growth in the employee benefits market, said Richard Roper, Hong Kong-based managing director of JLT Benefits Solutions Asia, a unit of Jardine Lloyd Thompson Group P.L.C.

Attracting and retaining talent is a key driver for employers in the Asia-Pacific region, according to Andrew Heard, managing director of benefits for Asia Pacific, and Chris Mayes, director of benefits optimization for Asia Pacific, with Towers Watson & Co. in Bangkok.

Two-thirds of respondents to a Towers Watson survey on employee benefits in the Asia-Pacific region published in April said attracting and retaining talent was a key objective of their employee benefits strategy, they noted.

“It is fair to say that employers in the region are ensuring their benefits are being used as part of their overall talent strategy — to attract, retain and engage employees,” they said.

In addition, employers across the region are faced with a rapidly aging population and a much wider diversity of generations within the workforce.

According to the Towers Watson Asia Pacific Benefits Trends Survey, which received responses from 1,145 employers across the region, employers are looking to flexible benefits to address this.

Almost one-third — 32% — of employers surveyed said they wanted to increase flexibility within the coming year, while 25% said they were intending to introduce flexible benefits this year.

Another 12% of respondents said they provide flexible benefits to staff, while 9% said they offer some employee choice.

Rising employment costs, notably in the area of health care, is becoming a concern for many employers in the region, sources said.

The Towers Watson study showed that more than three-quarters of employers — 76% of respondents — saw rising employment costs as their biggest challenge.

Clients increasingly are examining health management programs as a way to curb rising medical costs, Mr. Roper said.

There also is a growing focus on well-being plans in the region to help stem the rising costs of medical benefits, said Carl Redondo, a global benefits consulting leader at Aon Hewitt in London.

Companies increasingly are looking more strategically at their medical benefits in particular, said Messrs. Heard and Mayes from Towers Watson.

More companies also are exploring wellness benefits such as biometric screening, gym memberships, stress management and nutrition coaches to improve staff health, they said.