Supporting NGOs with Valuation Expertise
Valtech is proud to announce our recent appointment by one of the largest NGOs in Hong Kong to perform Long Service Payment (LSP) valuation, marking a significant milestone in our continued commitment to excellence in employee benefits analysis. This engagement highlights Valtech’s expertise to delivering reliable, compliant, and strategic valuations tailored to the unique needs of NGOs and corporate entities alike.
Detailed Analysis by Workforce Categories
Valtech’s approach begins with a granular analysis of the NGO’s workforce, segmented by critical categories such as age groups, years of service, employment type (i.e. permanent and contract), and voluntary contribution schemes. This segmentation ensures accurate modeling of liabilities, particularly for long-serving employees who exhibit higher loyalty and lower turnover rates—a factor often overlooked in simplistic models. By incorporating loyalty-adjusted turnover rates, Valtech mitigates the risk of underestimating LSP obligations, a common pitfall in generic calculations.
Comprehensive HR Data Review
A critical component of our process is the comprehensive review of HR data. We work closely with our client to scrutinize workforce records, ensuring that all relevant details. With access to detailed employee records, we analyze various factors such as age, seniority, and employee loyalty that affect LSP obligations. The unique characteristics of an NGO, including varied employment contracts and contribution schemes, require a tailored approach. By leveraging the data-driven approach and statistical models, we ensure that our projections are robust and reflective of real-world trends.
Practical Experience of Different Scenarios
Valtech’s engagement with the NGO revealed several unique challenges that demanded tailored actuarial solutions. Below are the key scenarios we addressed:
- Contract Staff Dynamics: While permanent staff often dominate LSP discussions, the NGO’s sizable contract workforce required special attention. Valtech conducted a historical analysis and applied adjusted turnover rates to reflect a more realistic pattern.
- Voluntary Contribution Schemes: Handling contributions from MPF and ORSO schemes involves navigating complex terms and conditions. Valtech’s model meticulously tracked these offsets while ensuring compliance with HKAS 19.
- Loyalty Factor: We have observed that many companies often overlook employees’ length of service or loyalty when making estimates. Typically, estimates rely on overall turnover rates or age-based assumptions. Valtech’s loyalty factor integration prevented underestimation risks inherent in age-only models.
HKAS 19 Compliance
Finally, it is our commitment to ensure that all valuation processes are performed in accordance with HKAS 19 Employee Benefits. This adherence to a globally recognized accounting standard provides both transparency and assurance to our clients and stakeholders, ensuring that each valuation is defensible, compliant, and directly aligned with best practices in the industry.
Trusted Partner in LSP Valuation
Valtech’s appointment by this leading NGO reaffirms our position as Hong Kong’s trusted partner for LSP valuation. By combining technical rigor with deep industry insights, Valtech empowers organizations to navigate legislative changes, optimize financial planning, and uphold compliance.
About Valtech Valuation
Valtech Valuation is a professional valuation firm accredited with ISO-9001 in valuation advisory services. The firm is renowned for its expertise in advanced valuation techniques, customized valuation models, data-driven insights, and adherence to compliance and reporting standards. The firm has a solid track record in valuation advisory for listed companies, private equity, fund managers, and financial institutions. Valtech’s qualified team comprises members with PhDs, CPA (HKICPA), CFA, Chartered Valuation Surveyors of the Royal Institution of Chartered Surveyors, and valuers accredited with Business Valuation (ABV) by AICPA and CVA qualifications in Singapore. Valtech continues to expand into more markets by leveraging its valuation platform and recruiting local experts.
