Describe the challenges faced by HR practitioner who is responsible to design and administer a global employee benefits package?
Multinational companies operate in a diverse and dynamic environment in terms of geographies, operating units, customers and their employees around the world. Although companies often spend a material portion of total compensation costs to provide benefits to their employees, they struggle at the corporate level to know what benefits they offer to reflect local market practices, how much they cost and what types of risks they pose to the enterprise. They also struggle with why, to what extent, and how corporate leaders and functions should get involved in local benefits-related decisions. I find that it is very challenging to put together benefits packages for a company that is multinational because not every countries benefit structures are the same. I may be beneficial to rely on third party administrators and brokers to help with the design of the benefits packages and with calculating quarterly statistics. I always want to know if the packages I am offering are the best for the company and for the employees working in all offices across the world.
Implementing a formal governance structure designed solely to execute certain benefit policies will allow companies to allocate their resources (both internal and external) optimally and ensure specific outcomes in terms of improved alignment of benefit designs and reduced costs and risks due to benefit plans.
Sooner than later,
The Tiny Professional