Navigating Global Employee Benefits: Insights from the THINK 2024 Conference
The Cowan Insurance Group’s THINK 2024 conference, held on November 7, 2024, provided valuable insights for multinational employers seeking to manage their global employee benefits programs effectively. Cowan’s Principal Consultant & Practice Lead for Global Benefits, Jacquie Fritsch, moderated a standout international panel discussion with Philippe de Dreuzy, Alliant Insurance Services‘ Senior Vice President and Global Practice Leader for Employee Benefits. Both are key figures within the Asinta Partnership.
This article explores key takeaways from the conference, including the ‘6 C’s’ framework for managing global benefits de Dreuzy uses as an educational foundation for consulting with his clients.
The 6 Cs of Global Benefits Management
Challenges – Global employee benefits are full of them, but the right consultants can help you through them all.
Complexity – Managing employee benefits across two countries that speak the same language is challenging, and the complexity significantly compounds with each additional country becoming part of the mix. Every country has its own employment and benefits rules and regulations, requiring a nuanced approach and a guide with a deep understanding of local markets.
Compliance – Ensuring compliance with local laws and regulations is crucial when hiring employees in different countries. Compliance with all federal and state laws is complicated, and the legalities surrounding leaves can be particularly challenging.
Cost Control – While offering competitive benefits is essential, it can be costly. Consultants can play a vital role in helping employers navigate this landscape, ensuring that benefits are attractive and financially sustainable. It’s important to scrutinize what local brokers are providing to optimize cost-effectiveness.
Culture – What works in one country may not translate well to another, and employers must be sensitive to these differences. Understanding local cultures is key to designing and implementing effective benefits programs. Alliant’s de Dreuzy gave an example from when he was new to working in Spain during the summer. He came into the office one summer afternoon ready to work and found it empty. To his surprise, he learned that working in the afternoons in summer (even with air-conditioned offices) is not the cultural norm in that country. Cowan’s Fritsch added that some benefits related to fertility and inclusion, which are common in the US and Canada, may be considered illegal and need to be adapted or reconsidered in other parts of the world. Providing inclusive benefits that align with company culture while respecting local sensitivities is a delicate balance.
Communication – Ensuring that employees know and understand their benefits is crucial. Translating benefit information into local languages and verifying that employees utilize the benefits is also key to a successful strategy.
Employer Perspective: Instacart’s Experience
A common theme for the conference was the challenge of offering the same benefits globally that represent the company’s culture and ensuring those benefits translate appropriately in each country. Margaret Fairbairn, Director of Global Benefits for Instacart, was a panelist with Fritsch and de Dreuzy and provided an excellent example.
“Instacart commits to hard dollars for various things the company believes in, including family forming benefits. We launched these benefits in Shanghai, China, and learned that the benefit we applied wasn’t even legal in Shanghai. So, when we think about compliance and then just what the cultural norms are, those are the two that we really struggle with.”
Fairbairn stated that all aspects of the 6 C’s framework are important, and she emphasized that nailing compliance and cultural understanding provides a solid foundation for successful global benefits management.
If you are a multinational employer needing to develop a more effective global benefits strategy to support your workforce while navigating the challenges of operating in diverse international markets, please contact Asinta.