New research indicates potential issues for companies offering identical benefits to overseas employees as those in the UK.
- A significant 57% of businesses risk not providing adequate support by standardising benefits regardless of location.
- Differences in health and wellbeing requirements between countries necessitate tailored employee support.
- Failing to adapt support to local needs can lead to legal and financial repercussions for companies.
- Employers are encouraged to benchmark and customise benefits to remain competitive in global talent acquisition.
New findings reveal that 57% of companies are potentially jeopardising employee support by extending identical health and wellbeing benefits to staff abroad as provided in the UK. This approach, while seemingly equitable, often falls short of addressing the varied needs of international employees. As Sarah Dennis, head of international at Towergate Health & Protection, states, ‘While on the surface it may seem ‘fair’ to offer everyone the same health and wellbeing support, this is rarely the case.’
Employers must be informed of and comply with local legislation concerning employee support in foreign countries. Requirements differ significantly, with local governing bodies mandating specific health and wellbeing provisions that might not align with UK standards. Consequently, seeking expert advice is crucial to ensure compliance and adequacy of support.
Differing needs arise not only due to legislative discrepancies but also because expatriates may require additional benefits unavailable to them naturally. For instance, local nationals might receive benefits by default, but UK workers overseas may lack access unless facilitated by employers.
Moreover, a failure to provide adequate health cover can have legal consequences, such as the revocation of work visas when specific requirements are unmet. This legal aspect underscores the importance of employers’ precise understanding of their obligations.
Financially, incorrect benefit allocation can also lead to taxation challenges. In countries like Germany, where employees contribute towards their medical care, appropriate ‘top-up’ benefits should be provided to avoid unwarranted tax burdens on employees.
Encouragingly, 41% of companies adapt their benefits according to the specific countries where their employees reside. However, the onus remains on ensuring these benefits are fit for purpose and actually meet the needs of all employees, including those mobile globally and those who are in-country nationals.
Benchmarking is essential, enabling companies with overseas employees to tailor their offer not only by geography but also by industry sector. This practice enhances competitiveness in drawing and retaining the right talent internationally.
Dennis further emphasises, ‘Health and wellbeing support should not be just blanket cover for all employees abroad. It should be carefully tailored to meet employees’ needs based on the countries in which they are working.’
Employers must align their health and wellbeing strategies with local requirements to effectively support their global workforce.
