According to new research, only 35% of companies with employees working abroad to ensure that they respect the legislation, according to new research of Towergate employee Benefits.
The legislation concerning the advantages must be provided differs in almost all countries of the world. Since the legislation of each country can also change regularly, it can be extremely difficult, although almost impossible, that employers are sure that they comply. For example, some working visas are only granted if the right health care coverage is in place, it is essential that employers count to ensure that the services are in accordance with the legislation.
Sarah Dennis, head of international in the benefits of Towergate employees, said: “In the context of the guarantee of benefits, the comparative analysis guarantees that the advantages of a company for employees working abroad align with relevant legal and regulatory requirements in each country.
“Comparative analysis can help identify gaps between current practices and industry standards or regulatory requirements, by country. By identifying and filling all gap, employers can mitigate the risks associated with non-compliance. ”
Benchmark to avoid too much and underestimate
The good news is that 79% of employers with foreign employees write to ensure that the advantages they offer are competitive. However, employers should be careful to ensure that this is robust. Comparative analysis of advantages in different countries must examine the advantages that should be offered to make the company competitive, but must also consider the compulsory advantages. And clearly, they must also be included in the package.
Similarly, certain advantages should not be included – because an increasing number of employers now employ local nationals, as opposed to recruitment abroad, many of them will be entitled to support by the State, so these must not be included in a set of benefits. Understanding the details of this can mean significant savings for many.
Emerging trends
Comparative analysis can help employers identify best practices and emerging trends to integrate into their own program. It will allow the company to stay up to date with the evolution of regulations.
“For example,” said Sarah Dennis, “In Italy, many benefits were traditionally covered by the public system, but with more companies that move employees, local businesses should now implement benefits to correspond to the offers of multinational employers.
Growing needs
Many companies will develop in new countries with a very small number of employees, or even one person. However, carrying out comparative analyzes is always vital, because support for a single person must be in conformity, and the employer will have the duty of diligence to ensure that this is the case. It is also common that assignments abroad develop rapidly in terms of number of employees, employers should therefore seek to put the foundations as soon as possible.
Employers are encouraged to compare the region, the country, the sector and the size. They must also remain adaptable in their criteria. The United States, for example, are vast, and therefore the comparative analysis must take place by examining the industrial sector by state, and not only by country. Employers cannot be experts in each scenario, therefore working with trusted advisers with specialized local knowledge is the key.
Sarah Dennis concludes: “The international benefits of benefits are increasingly complex, which reflects changing recruitment trends, such as the use of local nationals. Comparative analysis should be a continuous process and will then allow continuous improvement and uninterrupted compliance. Comparative analysis can be an incredibly useful exercise, but it must incorporate the right components to be real. ”
