What is the future of employee benefits?

To attract and retain the best employees, a strong benefits package is crucial.

But to build such a package, you need to understand what exactly these employees want — especially if you’re hiring across different countries, with different expectations.

In this guide, we’ll look at some of the key trends shaping how companies offer benefits. We’ll also provide some guidance on how your business can leverage these trends, and position yourself to attract and retain the best people — wherever they’re based.

Remote’s guide to managing global benefits spotlights one key mechanism critical to both attracting and retaining elite talent – developing a competitive benefits program. International workers expect benefits that are relevant to their respective regions. 

What are global benefits?

We know that a benefits plan allows a company to pay its employees outside their salaries, with features such as health insurance, mental health support, and a 401(k). A global benefits plan, however, empowers multinational companies to deliver all of these same tools to employees around the world.

Different countries have various requirements and regulations regarding employee benefits. In the UK, for example, healthcare is free and provided by the government, and in South Korea, the healthcare system covers up to 60% of medical expenses.

But healthcare isn’t the only factor that can vary by country. For example, some countries implement federal regulations around maternity leave — like Greece, which offers 43 weeks, during which employees receive 63% of their salary.

If you employ people internationally, you need to offer a comprehensive global benefits package that accommodates their respective locations. Remote can simplify this process for you. Not only can we help you figure out the requirements for each country, but as the top-ranked global HR platform for small businesses, we can make sure you offer the best-in-class global benefits.

Remote’s Global Benefits research

Remote’s Global Benefits research shares a wide-ranging look at employee benefits in the future of work. We surveyed 2,500+ employees and leaders in five markets covering a range of geographies and labor markets: Brazil, Eastern Europe (including Czechia, Poland, Romania, and Slovakia), India, the United Kingdom, and the United States.

We placed quotas on company size, gender, and work setup for on-site, hybrid, and fully remote companies and employees. Our market selection includes a diverse cross-section of global hiring and working environments. Each market represents a unique archetype in the global and remote work landscapes.

Benefits can be the difference-maker

Historically, benefit offerings have been dictated by legal requirements. Companies have simply offered what they are legally required to, and placed most of their focus on salary.

However, benefits are now becoming just as important, as both a retention tool and a differentiator for potential hires. 78% of company decision-makers have told us that they see greater retention when adding or improving their benefits, and this is especially true in cases where budgets are constrained.

Benefits are not just extras — and they shouldn’t be seen as such. They are key differentiators that show potential and existing employees that your company is invested in their long-term wellbeing and growth.

By aligning your benefits with the values and needs of your target talent, you not only attract high-caliber candidates, but also create a loyal workforce committed to your company’s success.Remote’s Global Benefits Report research found that 60% of employees say they have chosen one job over another because it offered better benefits.

“By providing employees with benefits that give them the security and confidence they need to thrive, employers set the foundation for better companies and teams.”

Marcelo Lebre, COO and co-founder of Remote

Flexible work has become the most important benefit

Flexible work arrangements have become the cornerstone of an attractive benefits package — and they are here to stay.

This flexibility can take many forms, such as remote working options, flexible hours, or even compressed workweeks, giving people genuine freedom to manage their life-work balance effectively.

This emphasis on flexibility is particularly important when recruiting younger talent demographics. Gen Z jobseekers have very different expectations of their employers than previous generations, strongly preferring flexibility and placing a higher value on life-work balance.

This is also true of working parents, who can adjust their work hours around their children’s school schedules, extracurricular activities, and other family commitments.

Luckily, flexible working is a positive for your business too. Many business leaders have told us that offering flexible work boosts employee satisfaction and engagement, resulting in increased retention and a wider potential talent pool. It also enables your team to work more harmoniously and efficiently, particularly if you have people working in different locations and timezones. In fact, 57% of employees rank flexibility as more important than compensation (40%) as found in Remote’s Global Benefits Report research.

DEI is a critical component of attractive benefits programs

To fully understand the future of employee benefits, it’s important to know how diversity, equity, and inclusion (DEI) is shaping benefits policies.

For instance, our research shows that benefits and perks are more important to female employees than male, particularly in regard to having:

• Sick leave (81%)

• Paid holidays (79%)

• Parental leave (53%)

In addition, while most people value flexible working as a benefit, women do so more than men. Flexible work allows employees to have more control over their schedules and, since mothers are the primary caretakers of children in most families, this can help solve one cause of gender imbalance in the workplace.

“Flexibility is highly desired by many candidates today. It’s one of the most powerful ways to make your company attractive to today’s top talent, and to make it an attractive place for them to stay long-term.”

Barbara Matthews, Chief People Officer at Remote

Benefits are an underestimated superpower for employers

In this report, Remote looks at benefits as an underestimated superpower for employers and an area where many may not realize they are lagging behind. While almost all (90%) of company higher-ups believe that their employees are satisfied with their benefits, only 72% of employees indicate they are actually satisfied.

Additionally, 77% of employees state that they have experienced challenges with the benefits and perks offered by their companies.

What can offering global benefits do for your business?

Offering benefits is a great way to keep your employees happy and healthy, no matter where in the world they live. But what, specifically, can a global benefits strategy do for your business? Let’s take a look.

Retain top talent

The more you can retain top talent, the less your company has to worry about hiring and onboarding new employees. Instead, it can focus on growing and generating revenue. Plus, you can save on recruiting and training costs in the process.

Retaining employees can also result in higher engagement since teams can learn to work better together over time. Long-term workers also tend to have a robust knowledge of your company and your business’s industry.

As Remote’s Global Benefits research shows, the impact of not offering the right benefits can be debilitating for companies looking to scale. A massive 60% of employees say they have chosen one job over another because it offered a better benefits package. However, 78% of company leaders have seen improved retention after adding a benefits program or enhancing their current one.

Reduce turnover

Turnover can interfere with the strategy and direction of multinational organizations. Instead of growing the business, attention turns to hiring and replacing employees who quit or were fired or laid off. An uptick in turnover can also worsen employee morale as your team continuously see their friends and colleagues leaving.

Offering a competitive global benefits plan can help here. Per the Global Benefits Report, 44% of company decision-makers say they’ve lost international employees or had international candidates turn down offers because the benefits package offered wasn’t up to par in their country.

Additionally, over one-third (35%) of global employees state that they have turned down or left a job due to issues or concerns with the benefits offered, indicating that company leaders need to take a closer look at their benefits offerings and reevaluate the needs of their workforce to attract and retain the best talent.

Appeal to women candidates

There are plenty of good reasons to attract women candidates for your organization. For one, teams with equal numbers of men and women secure higher sales and profits than male-dominated teams.

Studies also show that women bring different skill sets than men to the table. For example, women executives are more open to fostering change while simultaneously reducing risk for a business.

To appeal to women candidates, offer a robust benefits plan. According to the Global Benefits Report, 43% of women consider benefits and perks one of their most important job considerations. Plus, women are slightly more likely than men to consider all forms of leave as non-negotiables.

Appeal to candidates of all ages

Employees in different age groups bring different attributes to the table. So, to avoid missing out, appeal to candidates of all ages.

In general, young workers demonstrate more enthusiasm and coachability, as well as a better understanding of how to sell and market to the younger generation. They’re also often less expensive hires.

Older employees, on the other hand, tend to be more skilled and experienced, with a comprehensive knowledge of the industry. They can also help train the younger individuals on skills they may be lacking at first, like face-to-face communication.

Remote’s Global Benefits research found that most generations value benefits. Over two-thirds of Gen Z, Millennials, Gen X, and Baby Boomers seek a job that’s at least partially remote, for instance. Employees aged 40+, in particular, prioritize benefits and perks over growth potential and flexibility. And about two-thirds of Gen Z and Millennials have chosen one job over another because the former came with a better benefits package.

It can be tricky to appeal to (and retain) different types of employees. But with Remote, you can easily hire top talent across the world by spotlighting your roles and attracting diverse, qualified candidates.

Flexibility is key

But what do employees want out of their benefits plans? For remote and hybrid workers in particular, flexibility is the key. Here’s how that breaks down for different hiring markets:

• 57% of employees rank flexibility as even more important than compensation.

• 51% of employees in India say they’ve considered switching jobs for the flexibility to relocate abroad.

• Contractors rank flexibility as their #1 overall consideration when deciding where to work.

• Gen Zers rank flexibility as their #3 overall consideration.

• Women rank flexibility as their #4 overall consideration.

While employees should never have to sacrifice fair compensation for flexibility, these findings drive home just how important the benefit of flexibility is for workers who could do their jobs from anywhere. Leaders at many companies are responding to this global desire for flexible work by using it to improve retention, to gain access to new markets, and to respond to their employees’ requests and needs.

Essential benefits may vary by region

Other essential benefits vary by market. Sick leave, paid holidays, and health insurance are among the core essential benefits around the world. When looking at secondary essential benefits:

• 56% and 65% of Eastern European and Indian workers, respectively, look for awards and incentives.

• 72% of employees in Brazil consider parental leave the most important secondary essential benefit.

These nuances cannot be ignored, particularly with a majority of employees (67%) stating they expect their benefits to be comparable to those of other professionals in their country or city.

Benefits are more important when economic challenges arise

Remote’s benefits research also demonstrates that when economic challenges arise, a company’s benefits strategy becomes more important than ever. An overwhelming 88% of employees say having good benefits that cover their fundamental needs becomes even more important when money is tight.

Additionally, 79% agree that if a company needs to freeze salaries due to a difficult economic climate, offering a good benefits package can still set it apart as an appealing place to work. This shows that benefits can help maintain positive relationships between team members and their employers and allow businesses to continue to scale even in the face of financial uncertainty.

Remote’s Global Benefits guide provides a blueprint for building your benefits program

Download Remote’s Global Benefits guide to understand how to offer benefits that are both locally relevant and globally competitive. You’ll learn how to ensure compliance when expanding globally, and how to create equality and build trust across a multinational team.

What you’ll learn from Remote’s Global Benefits Guide

• Learn how to develop an equitable global benefits program

• Practices to ensure compliance with local labor laws

• How to attract and retain top talent with excellent benefits for global workers

• When and how to offer benefits to contractors

Offer best-in-class global benefits with Remote

The evidence is clear: employees are leaning more and more toward remote work and flexible jobs. As an employer, building a locally and globally competitive and compliant benefits program can become a sustained differentiator. This mechanism is a sustainable and cost-effective way to lure elite talent to your business and increase staff retention rates over the long term.

Remote acts as the perfect partner to manage and pay your global team at scale.

With Remote’s purpose-built global HR platform, you receive in-built compliant benefits plans everywhere you choose to hire. Our employment experts are on the ground on every continent, building culturally aware employment packages that help you build trust with, and retain your global team.

Best of all, there are no hidden fees — Remote’s low, flat rate helps you control your budget so that you can focus on growing your business. To learn more about Remote’s global benefits offerings, speak to one of our experts today.

* — We surveyed a total of 2,569 employees (including full-time employees and contractors) and decision makers (HR and business leaders with decision making authority over employee benefits). We fielded the survey in 5 markets covering a range of geography and labor market environments: Brazil, eastern Europe (Poland, Romania, Slovakia, and Czechia), India, the UK, and the USA. The survey was fielded online from June 28th to August 2nd, 2022. Survey participants were sourced primarily through a third-party panel provider (accounting for roughly 97% of the total survey sample) and supplemented by outreach from Remote (accounting for roughly 3% of the total survey sample).