How global benefits set companies apart in the new world of work (Report)

More than half of business leaders predict increased globalization in their workforces over the next five years, according to Remote’s 2022 Global Benefits Report.

And there’s one key element of the employee experience that needs to keep up with this rate of change: employee benefits. By failing to adjust employee benefits to reflect the times, employers may miss out on top talent.

Competitive benefits are major drivers of top talent. And since remote work has become the new normal in recent years, international workers expect benefits that are relevant to their respective regions.

In a new study of more than 2,500 company decision-makers and employees, Remote discovered what these individuals need and want from their employers. We dive into those insights here.

About the Global Benefits Report

Remote’s 2022 Global Benefits Report 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.

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.

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 the Global Benefits Report 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.

The Global Benefits Report mentioned earlier 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 report also demonstrates that when economic challenges arise, benefits become 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.

What else can you gain by reading Remote’s Global Benefits Report?

• An understanding of emerging benefits trends globally.

• A view of essential benefits globally and by region.

• Insights into the benefits seen as “emerging” or “innovative” globally and regionally.

• Knowledge of what benefits to consider for progressing toward DEI goals (for women and workers across generations).

Click here to download the report now!

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, it’s a good idea to offer benefits that can appeal to people around the globe, as this will help you retain top talent and reduce turnover.

That’s where Remote comes in.

As a leading employer of record, benefits are a core part of Remote’s business. Our people 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.