Ryan FowlerSeventy percent of employers with staff based outside of the UK do not know how much they are spending on employee benefits, according to new research from Towergate Employee Benefits.
The findings highlight the challenge many businesses face when managing global benefits programmes, particularly in high-growth regions such as South America, Africa and Southeast Asia, where labour costs may be low but compliance requirements are complex.
Sarah Dennis, head of international at Towergate Employee Benefits, said: “Whilst it can be difficult to keep up to date with benefits spend when it is on a global basis, 70% represents a huge number of employers who do not have a full handle on their benefits spend, and an awful lot more employees who may be missing out, or even being over-compensated.”
Dennis added that rapidly expanding companies in sectors such as IT, manufacturing, financial services and pharmaceuticals may find themselves managing overseas benefits for far more employees than initially planned. “It can be difficult to keep track of employee benefits spend when a company has employees in different countries around the world,” she said. “There will be the different locations to factor, and different arrangements in each of these varying countries. Companies may use local benefits providers in some locations and global benefits providers in others. If a company has expanded quickly, it can prove hard to keep on top of things, but it’s vital that they do.”
The research also notes that employers must consider location-specific needs such as emergency treatment, repatriation or evacuation, and ensure these are properly budgeted. With rising costs globally, failing to monitor and manage spend can lead to inflated expenses and poor value.
Dennis concluded: “It is clear that employers need help in taking control of their benefits’ spend on overseas employees. Expert guidance will help them to ensure they have the right support in place for employees and that they are getting good value for money.”
