Global Benefits Assessments

Tremendous Opportunity

Historically, multinationals often left most benefits decisions in the hands of local management in each country.  But now, faced with global competition for key talent, growing compliance requirements and escalating benefits costs, many multinationals now see the importance of centrally controlling, or at least actively monitoring, their worldwide benefits practices at the Home Office level.

This is easier said than done. 

The Problem

For clients who want to assert greater Home Office control over their worldwide benefits, one of the first challenges is gathering a meaningful inventory of the local employee benefits currently being provided in each country. Some companies initially try to gather this information by sending out requests or detailed questionnaires to local management in each country, but this method often fails. Local management may be too busy (or perhaps too suspicious of Home Office motives) to respond. Even if they do respond, the information is often incomplete or difficult to understand. Language and culture barriers can further complicate the process, as key details and nuances are “lost in translation”. These issues can lead to a great deal of frustration and delay in this critical first step.

Once the company has gathered a full inventory of its local benefits, it faces a new challenge: interpreting and evaluating the data. It is not enough to look at the employer-sponsored benefits in a vacuum; they must be viewed in the context of local social security, statutory benefits and customary benefits practices—all of which can vary significantly from country to country. Special attention needs to be paid to any new legal and regulatory developments to ensure the plans are fully compliant.

It is only after all these previous steps are complete that a company can truly begin to evaluate the overall effectiveness and cost efficiency of the plan.  Brokers who simply start in the middle by gathering quotes are essentially missing the forest for the trees.  They may know what the local employee benefits plan costs, but they have no idea what it is really worth.

The Solution:  Benefits Assessment

Benefits Assessments are fee-based consulting projects designed to provide clients with an independent review of their local benefits exposures and plan design.  The scope and parameters of the study are designed to meet the client's specifications and can be customized to include or exclude a range of features or options as needed. The project fee can vary depending on group size, territories involved and any additional information requested by the client; and this expense is often more than made up in program/cost improvements.