Global Employee Benefits: PTO Benchmarking: Which Country Is Most Generous?

Global Employee Benefits: PTO Benchmarking: Which Country Is Most Generous?According to Asinta Partners’ Global PTO Benchmarking Survey, Spain is the most generous with PTO offering workers 44 days of paid leave. Germany is second with 41 days and Brazil third, with 30 mandatory paid holidays and eight public holidays. The UK has 33 days, on a par with the UAE. These numbers include mandatory paid holidays, public holidays and supplemental holidays that are typically provided.

For a full copy of the survey please contact: marketing@pshp.co.uk

Global Benefits Trend: Employers Moving Away from ExPat Hires and Toward Locally Appropriate Approach for Global Benefits

Global Benefits Trend: Employers Moving Away from ExPat Hires and Toward Locally Appropriate Approach for Global BenefitsAsinta Partners are more and more finding their multinational clients changing who they hire for management roles in offices outside their native country. The trend is to now hire locally for these roles, rather than opt for an ExPat solution.

In turn our Partners have also seen global clients applying a locally appropriate approach to benefit strategy more than ever before. However, this approach creates unique benefit challenges for global benefits managers.

Challenges with the Locally Appropriate Approach

This approach means that a country specific benefit package is designed locally to match local legal requirements and employee expectations. It is typically the most cost effective options, but it can bring challenges including:

  • Finding a local advisor you can trust – A trusted advisor will ensure you get the appropriate benchmark data, keep you up to speed on legislative changes, expertly guide you through local benefits, and will communicate all this information in a way that is contextually relevant to you.
  • Sourcing quality benchmarking data – Make sure you know the benefit norms in the countries where you have employees and also remember to ask open ended questions about the data you receive.
  • Buying benefits for small groups can be difficult – If you have less than 50 employees in a local office you can have trouble purchasing certain benefits in certain countries. If this is the case you can consider pooling or perhaps buying a global policy.
  • Benefits can grow in scope or ‘creep’ – Local offices may extend benefits and pay about the norm and closer to head office benefits.
  • Increased administrative complexity with privacy regulations (GDPR for example) – Consider how you manage your data centrally and the role a coordinating adviser could play for you.

Asinta Partners specialize in solving all these challenges, and if you have questions about your global employee benefits program our Partners can help. Send your global benefits questions to us and we’ll put you in touch with the appropriate Asinta Partner.

Global Benefits: Strategy: Asinta’s Strategic Approach Three: Locally appropriate with minimum benefits

Global Benefits: Strategy: Astina’s Strategic Approach Three: Locally appropriate with minimum benefitsThere are three strategic approaches most employers consider after they’ve investigated the eight elements of a successful global benefits program. They are a global benefits approach, a locally appropriate approach, or a locally appropriate approach that meets minimum standards. In this post we’ll review the aspects of the locally appropriate method. Note that it is vital that senior management agrees with the chosen approach up front before any work begins.

The Locally Appropriate with Minimum Benefits Approach

When you take this path it means a country specific benefit package is designed locally to match local legal requirements and employee expectations. However, a minimum standard is applied.

The Up Side

  • The benefits match local market needs.
  • Minimum benefits provide a global approach to your company’s benefits strategy.

The Down Side

  • This approach is administratively complex.
  • Globally, staff will be treated differently.
  • It’s more expensive than ‘local only’ approach.

If you have questions about your global employee benefits program Asinta can help. Send your global benefits questions to us and we’ll put you in touch with the appropriate Asinta Partner.

Global Benefits: Strategy: Astina’s Strategic Approach Two: Locally appropriate

Global Benefits: Strategy: Astina’s Strategic Approach Two: Locally appropriate There are three strategic approaches most employers consider after they’ve investigated the eight elements of a successful global benefits program. They are: a global benefits approach, a locally appropriate approach, or a locally appropriate approach that meets minimum standards. In this post we’ll review the aspects of the locally appropriate method. Note that it is vital that senior management agrees with the chosen approach up front before any work begins.

The Locally Appropriate Approach

When you take this route it means that a country specific benefit package is designed locally to match legal requirements and employee expectations.

The Up Side

  • The benefits match local market needs.
  • It is the most cost effective approach.

The Down Side

  • This path is administratively complex.
  • Globally, staff will be treated differently.
  • Buying for small groups for some benefits in some territories can be challenging.
  • Global culture programs could be undermined due to lack of consistency.

If you have questions about your global employee benefits program Asinta can help. Send your global benefits questions to us and we’ll put you in touch with the appropriate Asinta Partner.

Asinta’s Strategic Approach One: Global Benefit Design

Asinta’s Strategic Approach One: Global Benefit DesignThere are three strategic approaches most employers consider after they’ve investigated the eight elements of a successful global benefits program. It is also vital that senior executives agree with the approach up front.

The three approaches are: a global benefits approach, a locally appropriate approach, or a locally appropriate approach that meets minimum standards. In this post we’ll review the aspects of global benefit design.

The Global Benefit Design Approach

Global benefit design means the employer choses to offer a range of benefits that are provided globally, but local mandatory and expected benefits are added to the package.

The Up Side

  • Employees across the globe are treated similarly
  • The global brand, and staff moving across territories, are supported
  • Global benefit purchasing power is possible

The Down Side

  • It is expensive
  • Some benefits may be inappropriate or not needed in some countries
  • It may be difficult to purchase some benefits in some countries

If you have questions about your global employee benefits program Asinta can help. Send your global benefits questions to us and we’ll put you in touch with the appropriate Asinta Partner.

Asinta’s Strategic Approach One: Global Benefit Design

Asinta’s Strategic Approach One: Global Benefit DesignThere are three strategic approaches most employers consider after they’ve investigated the eight elements of a successful global benefits program. It is also vital that senior executives agree with the approach up front.

The three approaches are: a global benefits approach, a locally appropriate approach, or a locally appropriate approach that meets minimum standards. In this post we’ll review the aspects of global benefit design.

The Global Benefit Design Approach

Global benefit design means the employer choses to offer a range of benefits that are provided globally, but local mandatory and expected benefits are added to the package.

The Up Side

  • Employees across the globe are treated similarly
  • The global brand, and staff moving across territories, are supported
  • Global benefit purchasing power is possible

The Down Side

  • It is expensive
  • Some benefits may be inappropriate or not needed in some countries
  • It may be difficult to purchase some benefits in some countries

If you have questions about your global employee benefits program Asinta can help. Send your global benefits questions to us and we’ll put you in touch with the appropriate Asinta Partner.

Global Employee Benefits Strategy: Eight Essential Factors for Success

Global Employee Benefits Strategy: Eight Essential Factors for SuccessAsinta Partners recommend considering eight factors when developing a global employee benefits strategy. Theses elements impact costs, employee satisfaction, as well as tax ramifications for the company and employees. And remember, these questions remain the same no matter the country. The answers, however, will always be different.

Asinta’s Global Benefits Strategy Essentials

1.   Minimums – Which benefits and benefit levels are legally required or mandatory?

2.     Most Common – What benefits are commonly offered?

3.     Benchmarking – What are the industry benchmarks?

4.    Inherited – Would inherited benefits be appreciated or not?

5.    Harmony – How can I create a global benefit standard?

6.    Culture – Which benefits do the local culture expect and appreciate?

7.    Local or Expat – Am I employing local employees, third country nationals, or both?

8.    Taxes – What tax implication does each benefit have?

Want more assistance with your global employee benefits strategy? Asinta can help. Send your global benefits questions to us and we’ll put you in touch with the right Asinta Partner.

Germany: Paid Time Off (PTO): Benchmarks for German Maternity and Parental Leave Benefits

Germany: Paid Time Off (PTO): Benchmarks for German Maternity and Parental Leave Benefits Many thanks to our German Partner Profion for providing this article.

One of the oldest countries in the world, and struggling to motivate young people to have children, Germany offers quite generous benefits for parents, ranging from cash to extended leave and job protection. Since maternity and paternity leave does not exist in the traditional sense, these benefits are generally available to both mothers and fathers. That said, women do enjoy special protection, which is also intended to protect the unborn child.

  • All German nationals and foreigners (including dependents) living in Germany are required to have health insurance through which they receive health benefits. This includes pediatric and OB/GYN medical care at no additional cost.
  • Pregnant women in an employment relationship enjoy enhanced protection at work and employers must carry out and document an assessment to ensure that the mother and the unborn child are not exposed to any danger or risks. If necessary, changes must be made to eliminate such danger or risks.
  • As soon as an employee informs the employer of the pregnancy, they employee enjoys protection against dismissal and the employment relationship cannot be terminated until 4 months after birth of the child.
  • If a woman is unable to work due to complications with her pregnancy, she is entitled to her full salary for as long as necessary. This may mean throughout the pregnancy. This applies for job protection as well.
  • Women (biological mothers) enjoy maternity protection periods, 6 weeks before and 8 weeks after birth and, in the case of premature or multiple births, 12 weeks after birth are generally not permitted to work.
  • During these protection periods, women in employment who are publicly insured, either by law, or because they have chosen to remain with a state health insurer, are eligible for maternity benefits and may not suffer a reduction or loss of earnings.
  • During these protection periods, the employee does not receive their salary from the employer only, but an allowance from both the insurer and the employer. This allowance is based on the employee’s average net earnings of the 3 months prior to the protection period, and is broken down into a fixed rate per day. The health insurance fund only pays a maximum of €13 per calendar day such that if the employee’s calculated average earnings per day exceed the amount of €13, the employer is obliged to pay the difference.
  • Privately insured women, or those co-insured with a family member, receive a one time payment of €210 from the Federal Social Insurance Office. and whatever amount they negotiated with their private insurance provider.
  • The employee is required to apply for the allowance from their health insurance provider, which in turn requires a statement of earnings from the employer.

Parental Leave

  • Fathers do not enjoy any protection periods, however they commonly receive 1-2 days paid time off on the birth of a child. Nevertheless, both parents have the right to take parental leave up to the child’s completion of age 3. Fathers who want to spend more time with their newborn must apply for parental leave. Similarly, mothers who want to stay home after the protection periods go on ‘parental leave’, not ‘maternity leave.’
  • It is not mandatory for employees to take parental leave. Both parents may take this leave simultaneously or in turns. Each parent is entitled to 3 years.
  • Parental leave must be applied for 7 weeks in advance and may be split into 3 blocks periods.
  • The employer’s consent is only required for the first part and for any changes to already agreed upon dates.
  • The last part of parental leave (up to 2 years) may be postponed and taken between the child’s 3rd and 8th birthdays. Although employees are required to give notice, the employer’s consent is not required.
  • Employees on parental leave enjoy job protection and may not be dismissed. Their positions must be maintained and they have the right to return to the same, or if this is no longer practical, to a similar position thereafter.
  • Although employees enjoy job protection while on parental leave, the employment contract is nevertheless suspended during this time, meaning that the employer does not have to pay the employee. Consequently, the employee receives, on application, an allowance for up to 14 months from the government. The rest of the leave is unpaid.
  • The amount of the allowance depends on the employee’s salary in the 12 months before the birth of the child. In the case of adoption, the salary at the time at which the child starts living with the parents is decisive.
  • The allowance is, in simplest terms, between 60-67% of the average earnings of the last 12 months before birth. However, it is capped at €1.800 per month (minimum €300) and is tax and social security contribution free.
  • Any income earned while receiving a parental allowance from the state must be reported and will reduce the allowance accordingly.
  • Parents with an annual income exceeding €500,000 (€250,000 if single parent) in the year prior to a child’s birth do not qualify for parental allowance.
  • Parents who are privately insured are required to continue paying health insurance contributions in full, including the employer portion, while on parental leave.
  • Employees may also elect to work part time during parental leave. They have the right to work part time up to a maximum of 30 hours per week with their employer. After parental leave, the regular contractual rights and obligations apply again.
  • Employees also have the right to receive half the parental allowance for two parents as long as both parents work part time for at least 4 months while on parental leave. Each will be entitled to receive the allowance for a further 4 months.
  • During parental leave, employees continue to accrue vacation however, this may be reduced by 1/12th for every full calendar month the employee is on parental leave
  • Any leave the employee could not take prior to going on parental leave does not forfeit and may be taken upon their return

Australia: 2018 Employee Benefit Benchmarks: Competitive benefit norms for mid-market employers in Australia

Australia: 2018 Employee Benefit Benchmarks: Competitive benefit norms for mid-market employers in AustraliaFor over 35 years CA Financial Services has been assisting employers with the construction and management of their employee benefits in Australia. They understand the importance of helping employees feel connected to their organization and the investments made for their future.

CA Financial Services is regularly asked by multinational employers to benchmark Australian employee benefits, and created this benchmarking report to provide such guidance. The report covers:

  • The Australian Benefits Landscape — Benefits Menu, Mandatory Requirements and Employment Law

  • Typical Benefit Design and Cost

  • Adviser Remuneration

If you have questions about employee benefits in Australia, please contact us and we will put you in touch with CA Financial Services.