Expanding Benefits Worldwide: Think Global, Act Local

Guest blog by JooBee Yeow, Advisor to Start Up Founders with Parallel’s Client Services Director, Caroline Masterton.

Navigating the challenges of establishing a consistent yet locally tailored benefits package is no small feat, especially for start-ups eager to grow. In this article JooBee and Caroline delve into the complexities and strategies of expanding employee benefits on a global scale.

• JooBee shares how to create an equitable and inclusive benefits strategy that addresses the unique needs of employees in different regions.
• Practical advice from Client Services Director at Parallel, Caroline Masterton
• Valuable guidance for companies looking to expand their global footprint while maintaining a supportive and competitive work environment

When JooBee is asked to join a start-up, it’s often to help them scale up their operations. If based in the UK the liklihood is they’ll already have a solid set of benefits in place, which could easily be replicated elsewhere. But, this isn’t very well-thought-out and considered – JooBee encourages you to strive for equity. And here’s why… over to you JooBee to share a recent example…

🌍 Having a global strategy
When I joined this organisation our Ideal Candidate Profile (ICP) targeted more experienced individuals and a more mature demographic. For them, security in health, family, finances and risk management were important and this formed our global strategy. When we kicked things off in the UK, we made sure to offer comprehensive coverage and the same global strategy applied to our non-UK locations.

🎯 Tailoring to local needs
As we expanded, we didn’t just slap the same health, financial and risk management benefits package everywhere. We wanted to remain competitive in terms of security in health, family, finances and risk management for our ICP, but we tailored them to address the specific needs and circumstances of employees in different locations. For example, offering enhanced healthcare in countries with limited public healthcare or enhanced parental leave in regions with less generous regulatory mandates.

🤝 Promoting inclusion
Equity ensures that all employees have access to the necessary support they need, which can vary significantly across different locations. This approach fosters a sense of fairness and inclusion within the company, as it considers the varied starting points within the country and barriers faced by employees. When we clearly understand the reasons behind our decisions, we can effectively communicate to employees why healthcare benefits may vary across different locations.

I’m sharing this not so you can just copy-paste our reasoning, but to inspire you. Think about what would work best for your company’s goals and how you can tailor your approach to benefit everyone. 🚀

So now that we have this information – over to you Caroline for your solid advice as always and summary:

1️⃣ Know the implications of cash in lieu
In start-ups, there’s a temptation to offer cash instead of benefits, especially during benefit setup or when employees are seconded abroad. However, opting for cash in lieu of benefits can create long-term complications. For instance, cash instead of insurance may leave employees underinsured, lacking essential benefits like health coverage, retirement plans, or disability benefits. Once cash in lieu is provided, it becomes challenging to retract this benefit without causing dissatisfaction or potential legal issues.

2️⃣ Don’t mirror your benefits
Additionally, mirroring benefits across different countries can pose significant issues. What is considered a competitive benefit in one country may not hold the same value in another due to varying cultural and economic factors. Providing equivalent benefits might lead to discrepancies and perceived inequalities among employees, thereby affecting morale and productivity. It’s essential to tailor benefits packages to the specific needs and expectations of the workforce in each location to maintain competitiveness and employee satisfaction.

For more information on how we can help to support you with your global benefit strategy contact malcolm.lyons@parallel-eb.co.uk // 020 8874 1230