Dive Brief:
- Managing global employer-sponsored benefits is getting even tougher for multinational employers thanks to rising costs and risks, according to a new co-report from Aon Hewitt and the American Benefits Institute
- For example, the study reports that 70% of the 200 multinational employers surveyed have a version of corporate guidelines and controls in place, yet struggle to effectively, and centrally, manage their global benefits programs.
- The study identified only 20% of employers as “best practice” organizations, based on several criteria, including HR and finance that have central access to data and market information on their global benefits programs, and "well-defined" risk management policies in place.
Dive Insight:
Other survey results focusing on best practices include:
- 93% of best practice employers deploy global centers of expertise (COE) to manage benefit programs, while just 51% of other organizations use a global COE model.
- 87% of best practice employers conduct formal audits (ensuring local benefits are aligned with global policies) compared to just 25% of other employers.
- 56% of leading employers say their benefit programs are in line with their workforce strategy; by comparison just 6% of other employers are confident that their benefits are in line with their workforce strategy.
James Klein, president of the American Benefits Institute, notes that the costs of plan sponsorship are high in the first place, but managing programs across multiple continents represents an even more daunting challenge.
The study also shows how the world’s ‘best practice’ plan sponsors thrive in a competitive global business environment. Without the data to make good decisions, employers will continue to struggle to mitigate the risks posed by their benefit programs.