It is no secret that every company wants to attract (and keep) the best possible employees. One of the biggest things people look for when applying for a position is the benefits – what will a company provide in addition to compensation? By putting the proper benefits administration in place, companies can get the attention of the top candidates.
What is a Benefits Administration?
A benefits administration is the process of putting in place benefits for employees of an organization. Employee benefits typically refer to medical insurance, pension plans, retirement, and time off. Time off can include paid or unpaid time off. Most noteworthy references to time off typically include vacation time, sick leave, maternity leave and paternity leave. Understanding what benefits to include and focus on is the first step towards putting the right benefits administration in place.
Why is a Benefits Administration Important?
Employees today expect more than just a salary from their employer. Providing the right benefits enables employees to feel more motivated at work and makes them feel more valued by a company. Although benefits themselves have no direct effect on employee performance, it has been proven that inadequate benefits lead to low employee satisfaction.
How can a Benefits Administration Set you Apart in Global markets?
Each country has different social systems that employees must participate in, as well as different expectations for employment benefits. Mandatory requirements for compensation and benefits vary from country to country, and different cultures lead to different expectations. Therefore, for a company to stand out in a global market, it is important to first and foremost do research. Determine what is the standard in a country, and what other companies do to set themselves apart. Let that be a guide when establishing benefits for foreign employees.
Putting a Benefits Administration in Action
There are many ways to put a benefits administration in place. When creating one for a company, there are certain factors to keep in mind:
- Health insurance – Learn the healthcare climate in a country. Does the country provide healthcare? Build your health insurance offerings around what employees of that nation expect.
- Time off – Does a country require a certain amount of time for paid vacation? What about maternity/paternity leave? Unlike the United Sates, paid time off is not seen as a luxury in most other countries.
- Retirement planning – Is it standard to offer pension plans and 401K? Younger employees are showing increased interest in retirement plans when choosing a position. Therefore, retirement benefits can be the key to retaining top talent.
Providing the right benefits to employees can be a challenging task for any HR department, let alone those trying to manage employees in multiple countries. The best way to go about dealing with benefits administration as you enter new markets is to do your homework and speak with experts who do this day in and day out across the globe.
Reach out to Velocity Global today to see how our international expertise can help you determine the right benefits administration to motivate your overseas employees in any of the over 185 countries we serve.