By Ashutosh Agarwal, Manager, Global Benefits, GoGlobal.
Are you looking to attract and retain global talent? If so, you’re not alone. A staggering 85 million jobs may remain unfilled by 2030 due to global workforce shortages, according to Korn Ferry.
To stand out, companies must offer not only competitive salaries but also compelling benefits packages. Expanding your search for talent globally is a critical step but this requires a nuanced, diversified approach to employee benefits. Offering tailored and equitable benefits carefully designed for a cross-border workforce is your golden ticket.
In this blog post, we offer an in-depth exploration of global employee benefits.
Why global benefits?
According to MetLife’s 2024 Employee Benefit Trends Study (EBTS), 73% of employees are more likely to stay with their employer if they have access to a broader range of benefits.
Global employee benefits are non-wage incentives designed to meet the diverse needs of an international workforce. These include paid time off, private health insurance, occupational pensions and remote work stipends.
Here’s why offering global employee benefits is essential:
- Attracting Skilled Global Talent: A standout benefits package can give you a hiring edge. It helps you attract high-caliber talent and establish your company as an employer of choice.
- Enhancing Employee Satisfaction: Superior benefits contribute to happier teams, translating to increased productivity, higher engagement and improved retention.
- Managing Compliance and Risk: With a global workforce, complying with local labor laws is crucial to avoid legal issues. For example, in the United Kingdom, employers must provide a workplace pension scheme.
- Cultivating an Inclusive Company Culture: Offering unique perks that respect diverse traditions and lifestyles fosters an inclusive workplace where everyone feels supported and connected.
Challenges in managing global employee benefits
Managing global benefits presents some challenges that HR teams must reconcile:
- Navigating Regulatory Complexities: Every country has its own labor and employment laws. Ensuring compliance requires being up to speed with statutory changes and establishing partnerships with HR and employment experts.
- Catering to Diverse Cultural Needs: Employee expectations for benefits vary significantly across cultures. A successful global benefits program must be flexible and adaptable, but also prudent and equitable.
- Cost Management and Competitiveness: Balancing the cost of competitive benefits across multiple countries is complex. Companies must attract top talent while maintaining financial sustainability.
- Data Privacy Compliance: Data privacy laws vary by country. Multinational employers must adhere to these regulations, necessitating additional security measures and protocols.
These challenges may seem daunting, but they can be overcome with the right global benefits management solution.
Key considerations for a global benefits strategy
Here are the top considerations for building an effective global employee benefits strategy:
- Understand Employee Needs: Conduct surveys or focus groups to gauge the needs and priorities of your global workforce. Identify which benefits are most valued.
- Balance Cost and Value: While offering competitive benefits is crucial, maintaining financial responsibility is also important. Analyze the cost-effectiveness of various offerings.
- Comply with Local Laws: Thoroughly research local benefits requirements to ensure compliance and avoid potentially costly legal issues.
- Cultural Considerations: Customize your benefits plan to align with local cultural norms. For instance, paid time off for family events may hold greater importance in certain countries.
Elements of the employee experience
We created the following infographic to display the key elements of the employee experience:
Tracking future trends in global benefits
The global employee benefits landscape is evolving to meet the needs of a dynamic workforce. Here are three key trends to watch:
- Automation and Technology: Companies are increasingly relying on advanced software solutions for faster and more accurate administration of benefits.
- Flexible Working Options: Flexibility in work arrangements remains a priority, with various remote working benefits being offered to attract and retain talent.
- Customization and Personalization of Benefits: Flexible benefits plans are becoming the norm, allowing employees to choose options that best suit their lifestyles.
Optimizing global employee benefits with the right EOR partner
While almost any business can enjoy the advantages of hiring overseas, not all have the means to develop compliant, attractive and cost-effective benefits packages.
Choosing the right Employer of Record (EOR) partner is a vital resource for managing global benefits. An effective EOR partner will not only handle the administrative and legal aspects of employment but also leverage advanced technology to enhance efficiency and communication.
By partnering with an EOR that uses a proprietary HR platform, you can maximize your global benefits. For example, GoGlobal uses BlueOcean to help clients onboard and manage HR processes. This ensures compliance with local regulations, supports effective communication and provides a seamless, secure experience for your international workforce.
By optimizing your global benefits packages with an EOR partner, you can attract and retain top talent while maintaining compliance. This strategic approach not only enhances employee satisfaction but also positions your company as a leader in the global job market.
Contact us today to discover how the GoGlobal Global Benefits Team can help you design an employee experience that fuels business expansion and hiring.