Many companies apply identical benefits for international and UK employees, risking inadequate support for the former.
- 57% of firms extend UK-standard health and wellbeing plans to employees abroad, ignoring specific local needs.
- Legal and financial repercussions loom if companies fail to adapt benefits to differing international regulations.
- Expert advice is essential for employers to comply with local legislation and offer appropriate support.
- Evidence shows 41% of companies are customizing benefits for global employees, promoting better-fit support.
Many businesses face challenges when extending identical health and wellbeing benefits to employees abroad as they do in the UK. According to research from Towergate Health & Protection, 57% of companies do not differentiate between the support offered in the UK and that provided overseas, potentially leading to inadequate support for international workers.
The assumption that identical benefits ensure fairness is misplaced. Sarah Dennis, head of international at Towergate Health & Protection, notes, “While on the surface, it may seem ‘fair’ to offer everyone the same health and wellbeing support, this is rarely the case.” Offering universal benefits can inadvertently neglect the specific needs of employees, which vary significantly across different countries.
Employers must navigate varied international regulations regarding health and wellbeing support. Each country has its own legislative requirements, and what suffices in the UK might not meet standards in another country. Without local compliance, companies could face significant legal challenges, including the potential revocation of work visas when certain health benefits are not met.
The financial implications of misaligned benefits can be substantial. In countries like Germany, employees are taxed differently, and excess compensation in benefits can lead to unnecessary taxation. Companies need to provide benefits that align with both local requirements and their expatriate employees’ needs to avoid these financial pitfalls.
Despite these challenges, 41% of enterprises with overseas staff are beginning to tailor their benefits packages depending on the country in which their employees operate. However, employers must continue to ensure that these tailored benefits genuinely cater to the requirements of a diverse workforce. Proper benchmarking, both by region and industry, can enhance competitiveness and support talent acquisition.
The need for tailoring benefits is underscored by the necessity to use local expertise to align company policies with in-country requirements. Sarah Dennis emphasizes, “Health and wellbeing support should not be just blanket cover for all employees abroad. It should be carefully tailored to meet employees’ needs based on the countries in which they are working.”
Employers must ensure health and wellbeing benefits are carefully tailored to meet the diverse needs of international employees.
