THINK 2024 Insights: Navigate the Global Benefits Landscape | Cowan

At THINK 2024, hosted by Cowan Benefits Ltd., industry leaders came together to tackle one of the most complex challenges facing multinational organizations today: global benefits management. With an increasingly interconnected workforce, designing and delivering competitive, locally relevant, and compliant employee benefits has never been more vital—or more challenging.

The panel discussion featured a stellar line-up of experts, including Jacquie Fritsch, Principal Consultant & Practice Lead of Global Benefits at Cowan, who served as both moderator and participant. Philippe de Dreuzy, Senior Vice President - Global Consulting Practice Leader at Alliant Insurance Services, and Maggie Fairbairn, Director of Global Benefits at Instacart, joined her. Together, they explored the intricacies of global benefits, shared practical strategies, and provided insights into emerging trends.

The Complexities of Global Benefits Management

The panellists painted a vivid picture of global benefits as a field that is both exciting and immensely challenging. As organizations expand across borders, they face a series of hurdles that require careful navigation: ensuring compliance with diverse local laws, managing costs, addressing cultural differences, and effectively communicating benefit options to employees.

Philippe de Dreuzy crystallized the challenge with the six "C’s" of global benefits management:

• Complexity: Nearly 200 countries, each with distinct employment and benefits regulations, create a maze of requirements. For instance, compliance expectations can vary not just between nations but within regions—such as across Indian states or Canadian provinces.
• Compliance: Adapting to dynamic legal frameworks, from leave policies to tax rules, is non-negotiable. Philippe underscored the value of engaging local expertise to mitigate risks.
• Cost Control: Maintaining generous benefits while staying within budget is crucial. Employers must work closely with local brokers to ensure offerings are cost-effective yet impactful.
• Cultural Awareness: A benefit valued in one country might miss the mark—or even offend—in another. Philippe shared a humorous anecdote about learning the importance of Spain’s siesta culture, highlighting the need for cultural sensitivity.
• Communication: Employees need clear, localized information about their benefits in their native language to make full use of the programs.
• Consistency vs. Equity: Employers often face a dilemma between standardizing benefits globally and adapting to local realities. Equity—ensuring fairness while respecting differences—often takes precedence over uniformity.

To address these challenges, the panellists emphasized the importance of a strategic and localized approach. Benefits must align with local norms, expectations, and statutory requirements to be truly effective. For instance, extended parental leave, considered exceptional in the U.S., is often a baseline expectation in many European countries. Simultaneously, organizations should establish clear objectives for their benefits programs, ensuring they align with broader business strategies and financial realities. This dual focus on cultural alignment and strategic intent helps create benefits offerings that are both locally relevant and globally sustainable.

Emerging Trends Shaping Global Benefits

The panellists highlighted several innovative trends reshaping the global benefits landscape. Lifestyle Spending Accounts (LSAs) provide flexibility, allowing employees to allocate funds toward wellness, hobbies, or personal preferences, making them especially appealing to younger generations. Creative ancillary benefits include programs such as gender affirmation services, Indigenous counselling, and menopause support, and are becoming more common, signalling a focus on inclusivity and innovation. Point solution fatigue can result from managing multiple specialized vendors across regions, which can overwhelm employers. A balance between specialization and simplicity is crucial.

Achieving the ideal balance between global consistency and local flexibility is a key objective for multinational employers. By maintaining a unified benefits philosophy while tailoring offerings to align with local needs and realities, organizations can ensure their programs are fair, relevant, and meaningful to employees across diverse regions.

Communication and Administrative Cohesion

Effective communication and centralized administration are pivotal in global benefits management. Clear, localized messaging helps highlight the value of benefits to employees, address disparities in global programs, and increase engagement with underutilized offerings like Employee Assistance Programs (EAPs). Additionally, a cohesive benefits management team streamlines processes, reduces inefficiencies, and ensures consistency, minimizing the reliance on disjointed local contractors.

Final Takeaways

The session concluded with practical advice for global benefits leaders:

• Define Your Strategy: Understand the "why" behind your benefits to align them with both organizational goals and employee needs.
• Invest in Communication: Educate employees about their benefits to maximize utilization and satisfaction.
• Streamline Administration: Use integrated systems to manage global programs efficiently while allowing for local flexibility.

The insights shared at THINK 2024 underscore the importance of adopting a thoughtful and strategic approach to global benefits. By balancing cultural sensitivity, innovation, and administrative efficiency, employers can build programs that resonate with their diverse workforce and contribute to organizational success.

Video highlights from the panel discussion