Did you know that a few months back, a study by consumer affairs revealed that 42% of employees leave their current company seeking better benefits? Global employee benefits have evolved significantly during the last decade and are considered a key factor in global employee retention rates.
There is a lot happening in the global hiring markets for the past couple of months – all credit to great resignation, quiet quitting, quiet hiring, mass layoffs, and the impending threat of recession. Along with these shuffles and movements, employees are still looking, comparing, and contemplating newer jobs for better benefits employers could offer.
Global employee benefits, as we know, are non-wage compensation a company provides its employee for the talent and expertise they put forward. It does not necessarily include the employee but also extends to the family, as in the case of popular health insurance plans.
International employee benefits are an excellent catch for retaining and onboarding the best employees. Every company tries to present exciting global employee benefits to its workforce, ranging from a simple food coupon to paid vacations and unlimited time off.
Top global employee benefits trends
With life and technology undergoing rapid changes, the needs and expectations of employees change. International employee benefits, too, need to evolve with the changing needs of the workforce. Let us see the top trends in practice:
Healthcare costs worldwide are on the rise. As per the Global Medical Trends survey 2023, medical costs increased by 6.9% in 2022 and are expected to rise by 10.2% by 2023. Similar trends are also seen in other countries, pointing to an increased burden on commonly employed people.
Though several factors prompted the medical expenses, the Covid 19 pandemic contributed the most. It exposed the weaknesses in the healthcare system, understaffing, and resource shortage, all of which increased the demand for services and the cost.
The rising cost of healthcare creates constant stress for people, and this is an excellent choice to offer as a global employee benefit for your employees. It can give them a sense of security and support for their family.
The pandemic has triggered anxiety disorders for many, which brought the already existing concern of mental wellness into the limelight. People began to understand how important it is to have peace of mind, started talking about it, and sought help.
About 84% of psychologists say the demand for mental health has increased since the pandemic. As a part of global employee benefits, companies can offer telehealth facilities as a part of employee assistance programs, helping employees with work-related issues or personal ones that may cause adverse effects on their mental and emotional wellness.
Many international employees’ benefits these days include the mental wellness option, which will be great for dealing with depression, anxiety attacks, substance abuse, family issues, workplace stress, and other traumatic experiences.
Leaves and Paid time off
Do you know many companies follow unlimited leave policies these days? And paid vacation? Well, yes.
With a greater focus on work-life balance, top talent prefers to spend less time working with greater productivity and utilize the rest of the time to be spent with family and friends, doing things they love.
Global talent trends 2022 reveals that 63% of employees consider work-life balance a top priority when choosing a new job compared to salary and culture. Above 50% of employees who participated in the study wish to stay longer in the company that offers them vacation leaves.
Flexibility is an essential factor inspiring the workforce to remain focused on the work, reciprocating mutual understanding and commitment towards the organization. Encouraging employees to use the paid time off is considered an act of kind-heartedness from the employer’s side and is highly appreciated by the employees.
How do global employee benefits differ around the world?
Global employee benefits vary from country to country depending on the labor laws prevailing in the region. Also, there are guaranteed benefits that are mandatory and fringe or supplementary benefits, which can be either provided or not, depending on the employer.
Let’s take a quick look at a few countries and their benefits.
The country provides employees annual vacation, sick, paternity, and maternity leave. All employees who worked for at least one month are entitled to 13th-month pay and are paid before Christmas.
Other mandatory employee benefits in the Philippines include:
- Social Security
- Housing benefits
- Provident fund
United States of America:
The U.S. does not mandatorily offer any annual or maternity leave, but it is at the discretion of the states and employers. Though the U.S. does not have legal status for 13th-month pay, providing employees with Christmas and New Year bonuses is customary. The top employee benefits in practice include:
- Unemployment Insurance
- Federal Insurance
- Health Insurance
- Family and medical leave
- State disability insurance programs (California, Hawaii, New Jersey, New York, Puerto Rico, and Rhode Island)
The country is often ranked as one of the top happiest nations in the world. They mandatorily follow annual leaves (25 days), sick leaves (30 days), and 18 weeks of maternity leave. Denmark does not favor overtime work and hence, has no rules deciding the pay. The top benefits available to the workforce include:
- Paternity leave
- Holiday pay
- Holiday Supplement
- Pension scheme
The country-continent considers annual leave, sick leave, and maternity leave compulsory. The employee benefits in the country include:
- Maternity leave
- Paternity leave
- Stock options (Common for listed companies)
The European country has mandatory annual, sick, and maternity leave. The nation also follows 13th and 14th-month pay, which are mandatorily mentioned in the employment contract. The other benefits include:
- Social Security
- Sick and Disability Leave
- Healthcare Insurances
- Pension Benefits
The rainbow nation has made it mandatory for employees to have annual, sick, and maternity leaves. The common benefits South Africa follows for its employees include:
- Statutory Leaves
- Unemployment Funds
- Healthcare Insurance
- Retirement Plans and Pension
- Skills development benefits
- Occupational Accidents and Diseases benefits
Do you wish to know the global employee benefits available to any specific nation? View it here.
Develop strategies for your global employee benefits
Every organization needs a strategy to come up with benefits to offer to global employees. The talent you employ needs to understand the perks and benefits they get in collaboration with your company. For that, as an employer, you have to understand what pain points the employee has and in what cost-effective way you can meet those needs.
Steps to develop global employee benefits strategy
Step 1: Understand compliance
Get to know the mandatory and supplementary benefits available in the country you wish to hire from.
Step 2: Identify challenges
Find out the issues the employees face. The benefits you provide must be the answer to employees’ pain points.
Step 3: Prioritize the solutions
Develop cost-effective ways to solve the identified pain points.
Step 4: Monitor competitors
Keep an eye on the competitors’ packages and stay updated with the changing mandatory benefits of countries.
Step 5: Popularize benefits
Market the benefits so that employees would dream of working for you.
Partner with Multiplier for the best global employee benefits
Identifying the most suitable global employee benefits and developing strategies accordingly need expert hands, and who better to do it than the best EOR provider? The process of developing the global benefits strategy demands time and thorough effort, which is why Multiplier comes to your rescue.
As a SaaS-based industry expert, Multiplier can help you develop customized employee benefits programs. It helps you to focus on the business rather than operational nuances consuming your valuable time.
Do you wish to provide attractive global employee benefits to your workforce anywhere in the world? Retain the top talents anywhere around the globe with the best employee benefits. Book your demo Now.