It’s quite possibly never been this challenging to attract and retain talent. A survey by ManpowerGroup, as presented in the Atlas 2024 Global EOR report, found a 75% talent shortage around the world. This creates a huge strain on the workforce at a company and may lead to missed business opportunities.
In such an environment, benefits are the most effective tool, along with salary, that organizations can use to stand out from the competition. Recognizing this, companies are getting creative with their benefits portfolio. Some of these more interesting benefits include: sabbatical leave for developing new skills, a wide array of professional development or mental health funding, travel costs covered for caregivers, and pet insurance.
More than just add-ons, these benefits form a core part of an employee’s overall experience at their company. It helps them achieve work-life balance, reduce stress, and plays a key role in shaping how they view their organization. Benefits, then, are just as important for retaining talent as attracting it.
However, achieving this competitive array of benefits efficiently is no easy feat. When trying to compete on a global scale with larger corporations, developing a portfolio of equally competitive benefits can be hugely challenging.
There are a couple of reasons for this.
Nice to have vs a right to have: staying compliant with benefits
One reason is that the benefit expectations for each country are going to differ significantly. These will be differentiated by a mix of benefits that are nice-to-haves versus those required by local law, which all companies must follow in order to remain compliant.
Consider maternity leave. Across Europe, while the EU mandates 14 weeks’ minimum, different countries will have a range of varied legal and social expectations by country. These include:
Country | Minimum weeks off | Rate of pay |
|---|---|---|
Germany | 14 | 100% |
The Netherlands | 16 | 100% |
France | 18 | 100% |
Ireland | 26 weeks paid, 16 unpaid | Weekly rate of €250 |
Italy | 20 | 100% |
Spain | 16 | 100% |
Paternity leave is equally varied, with countries like Spain and Finland offering more than 15 weeks compared to the 2 week EU minimum.
Even more unique exceptions abound – from the Right to Disconnect in countries like Australia, to Funeral Grants in Sweden’s statutory social insurance scheme. Expect significant fines for non-compliance, despite that those policies may be unexpected to you from your own cultural background.
In order to remain compliant, companies also need to keep in mind which benefits will be taxable and non-taxable. Taking the UK as one example, taxable benefits will be those that are part of an employee’s income and subject to tax – and will include bonuses, housing allowances, and cars. Non-taxable benefits typically include medical insurance, pension, and free or subsidized meals.
These nuances highlight the complexity involved in developing a comprehensive benefits package for a global workforce.
Building and balancing the right portfolio of benefits
Another major challenge companies face is building a portfolio that is both cost-efficient and balances local and global needs.
Benefits quickly become very expensive, particularly to smaller organizations, who might not have enough employees in specific locations to receive discounts from providers. This lack of economy of scale is another hurdle for businesses competing to get top talent, as larger companies can negotiate better rates from insurers and other vendors, offering more attractive recruiting packages as a result.
Finding the right balance between standardizing and localizing benefits can also be difficult, as different countries will value different benefits. In the US, excellent healthcare plans are paramount, but might be less so across different European countries. In Japan, a housing allowance for employers to cover rent is very common.
Not striking the right balance with either consideration will negatively impact employee experience. Too much global standardization won’t fulfill workers’ needs in specific countries, and could send the message that global workers are less valued or, at least, not sufficiently understood. Benefits that are too localized, however, will create a fractured employee experience – a different company for each country, in addition to the mounting management complexities for employers. Both harming morale and the sense of working for a unified company.
While different countries will come with different expectations, it’s important to highlight the biggest trends with global workforces, regardless of the country. A recent KPMG survey of global employees broke these core trends down into four pillars:
Broader paid leave programs for parent and caregiver
Expanded mental health services
Support for remote work, including telehealth programs
ESG offerings, including sustainable pension and electric car subsidies
It’s an important reminder that, for all of the global variations, some benefits really are universal – or at least many employees think they should be. Organizations should keep these benefits in mind when trying to strike the correct balance in a benefits package.
Make benefits your secret hiring superpower with Atlas
Building benefits packages is much more of an art than an exact science. It requires sensitivity and insight into current trends in employment, both globally and locally, in order to develop the most competitive package possible.
Partnering with Atlas can help you create that best-in-class employee benefits package. Working in over 160 countries, Atlas provides the insight that allows you to pinpoint the best benefits to offer your teams, while also providing access to the kind of benefits that would normally only be possible at a bigger organization.
Medical, dental, optical, life and travel insurance are available to all Atlas-client employees, regardless of where they’re based. This levels the playing field, not only between your organization and larger competitors, but also amongst your global employees.
In addition to the standard expected benefits, Atlas helps you make people your superpower through Atlas Learning. With over 9000 courses available via Coursera, Atlas Learning empowers your team to upskill and reskill as they adapt to the rapidly changing expectations in the world of work.
A survey from The Conference Board found that 58% of those polled would leave their company if it did not provide access to the professional development needed for advancement. Atlas Learning, therefore, allows you to retain existing employees while it helps them become more valued and empowered workers in the process.
This comprehensive, versatile array of benefits will help you construct a portfolio that matters most to your current and future employees. It’s your secret hiring superpower that will help you remain competitive when hiring around the world.