Your employees are your most valuable asset. When you invest in their financial well-being by offering flexible retirement plans, they'll invest in you by remaining loyal, exceeding productivity goals, and beyond.
And when you're ready to grow your team across the globe, international pensions attract top talent too. Partnering with an employer of record (EOR) lets you hire confidently, whether it's one person or one thousand
Keep reading for seven reasons to offer international pension plans in your global compensation package.
1. Talent Attraction and Retention
Retirement plans are increasingly valuable in attracting top talent. It's no surprise talent wants financial support for a comfortable retirement, and offering a flexible pension plan can be a valuable tool in attracting the top talent a business needs to thrive. Almost half (47%) of global workers believe a retirement plan is an important reason to join a company, up from just 23% in 2010.
Don’t forget about your current employees—keeping your talent happy and motivated to remain loyal is just as important as growing your headcount. According to the WTW 2022 Global Benefits Attitudes Study, 60% of employees say retirement benefits and healthcare are important reasons for staying with their current employer. Additionally, employees who are satisfied with their benefits packages are 70% more likely to remain loyal to their current employer.
2. Decreased Recruitment Costs and Time
Did you know the average employer in the United States spends approximately $4,683 on recruiting an employee? Add in the several days and weeks it takes to fill a position, and the sum is significant money and time. Leveraging flexible pension plans as a retention tool helps to save time and reduce recruitment costs by minimizing employee turnover.
3. Increased Productivity
Offering flexible retirement benefits like international pension plans is a win-win for everyone. These benefits contribute to employee satisfaction and help retain high-performing individuals, who can be up to 400% more productive than average employees. By providing retirement benefits, organizations demonstrate their commitment to employees' long-term satisfaction, fostering a sense of security and engagement.
4. Improved Customer Satisfaction
Prioritizing employee happiness through competitive benefits creates a motivated workforce that goes above and beyond to satisfy customers and contribute to sustained success. According to the Harvard Business Review, one of the keys to customer satisfaction is employee happiness.
Offering comprehensive benefits like retirement and savings plans improves employee morale, directly impacting customer satisfaction. Satisfied employees provide exceptional customer service, building stronger relationships and loyalty. Recognizing talent as the most significant resource and investing in employee well-being encourages a culture of mutual investment.
5. Equity and Inclusion
Competitive global benefits like pensions play a crucial role in promoting equity and inclusion within the workforce, an important organizational framework that creates an environment where diversity thrives, ideas flourish, and individuals reach their full potential.
When companies provide flexible retirement benefits to all employees regardless of background, age, or nationality, they demonstrate a commitment to fair treatment and non-discrimination. This inclusive approach to benefits compensation fosters a positive work culture, boosting employee morale and productivity. It also expands the talent pool by attracting candidates seeking an organization that values equity and inclusion.
Offering pensions to all employees ensures long-term financial security and sends a powerful message that every individual is respected and their contributions are recognized.
6. Legal Compliance
Taking care of your people by offering international pension plans isn't a simple task when dealing with compliance—and failing to meet compliance regulations in some countries can result in legal consequences and damage your company's reputation. While retirement regulations are complex and differ from country to country, partnering with an EOR is a smart way to offer your talent compliant, cost-transparent, and tax-efficient plans that are well-recognized in their country or territory.
7. Social Responsibility
For many generations, retirement readiness feels further away. By 2050, the world's population of people 65 and older will have doubled from 10% to 20%. This shift—plus the increase in life expectancy—is drastically reshaping how today's workers approach retirement, as many face the reality of not having enough savings to retire comfortably. To show commitment to employees' financial health and long-term security, companies can offer competitive benefits that address evolving employee needs.
Offering competitive, flexible retirement plans has become a game-changer in attracting top talent, with almost half of global workers considering it a significant factor in choosing a company. Equally important is keeping current employees content.
These benefits not only reduce recruitment costs and save time but also boost productivity and customer satisfaction. Plus, offering inclusive retirement plans demonstrates a commitment to diversity and equity, fostering a positive work culture and embracing social responsibility.
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Download our guide to learn more about how to offer comprehensive benefits packages that help you attract and retain top talent all over the globe.
