Your company has a solid global strategy in place that covers the goals and requirements for new market startup, but how comfortable are you with your international benefits plan? Compensation is simply one piece to the complicated puzzle of hiring overseas. Your company needs to determine the most comprehensive international benefits package to provide to potential employees that attract not only top talent but also passes the cost-to-value assessment. Below we help your company understand how to complete your global strategy with a stellar international benefits plan.
Evaluate International Benefits Regularly
Keeping up with global compliance, changing tax requirements, and employees’ needs are some of the most challenging aspects of an international expansion. We’re willing to bet that your company performs regular evaluations surrounding your local benefits plans. You need to include your international benefits into the rotation of review once you expand overseas. In fact, the first thing we recommend doing, even before you startup in a new market, is performing a review of your plan.
Once your company creates a global strategy, work with an in-country expert to ensure you covered all the requirements for benefits, withholdings, and taxes into your plan. Global markets have laws and regulations regarding compensation and benefits that regularly change. The only way to stay on top of these new laws is to monitor your plan closely often.
Discover Your Competitors’ International Benefits Structure
During your global strategy creation, we advise taking a look at your competitors in your new market. Determine if their operations are successful, what they are doing that works, and after review, make a decision about your presence in that new market. One factor your company should also focus on is your competitors’ international benefits plans.
Research shows you an average compensation and benefits program, which is a good guideline to determine if your company is planning to offer too much or too little for its overseas employees. For example, is a similar company to yours paying expats a foreign-service premium for taking an assignment and if that company is, consider doing the same.
Determine the Best International Benefits Package
International benefits packages include government coverage, government mandated coverage and employer coverage. In many overseas markets, governments provide employees with essential health care coverage and retirement benefits, like a pension that employers and employees pay into each pay cycle.
There are supplemental options of coverage that employer, like yourself, can choose to provide such as extra health care coverage, travel health insurance, disability insurance, and bonus programs. As mentioned, it’s a good idea to not only discover what your competitors offer but also determine what your company can afford to provide. You can also distribute a survey of your market and realize expected benefits to increase your chances of attracting the best talent.
Expanding overseas does not have to be time-consuming, expensive and stressful. Velocity Global provides a suite of services that help businesses start up operations in their target country quickly and easily. Give us a call today to find out how we can take your business overseas.