Going global: 5 benefit plan considerations
Published April 23, 2013 3:01 PM
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Updated April 23, 2013 3:24 PM
1 Min Read
1. Make sure you have a strategy.
Prior to expansion, plan your strategy. What will your compensation and benefits mix be? Do you want to meet the market or do you plan on using benefits as a differentiator? Ensure you have a clearly articulated vision and benefits philosophy. There are several countries where, once a benefit is put in, it cannot be taken away but instead becomes an acquired right.
2. Learn the basics.
A simple Web search can provide some basic information about the health care and retirement systems of the country into which youre expanding. Network with colleagues who might know about the country and dont forget about resources such as LinkedIn groups or Quora, where you can pose a question and have others outside your network share information.
3. Check with your local broker or consultant.
Many U.S.-based brokers or consultants either have connections to global broker associations or provide global consulting services themselves. By leveraging your existing relationships, you may be able to work with a partner that already understands your company culture and existing benefits philosophy.
4. Who's handling payroll?
Often, when a company first expands into a new country, it hires a third-party vendor to handle payroll. These third-party vendors will often be able to either guide you to select and set up benefit plans or will be able to connect you with a local broker who can help you understand the local market. There are often additional charges for these services, so make sure to get full disclosure on pricing.
5. International brokers may be the right choice.
There are several major consulting firms that offer international capabilities. They can help you with services ranging from understanding and setting up local benefit plans and options to building a consistent global benefits strategy.
