How to implement a global total reward strategy
Getting a holistic overview of your workforce and implementing an effective global benefits strategy is a challenge for every HR professional.
First, there are geographical and logistical challenges, then there are the generational challenges – with each generation having their own needs and wants depending on their life stage.
Deloitte’s Global Human Capital Trends (2018) survey revealed that only 8% of organisations said that their rewards programme was “very effective” at creating a personalised, flexible solution. Additionally, only 9% of companies reported that they use data and analysis to a great or very great extent to understand employee preferences.
Benefits that reflect your brand
A company’s global total reward strategy should reflect the company’s values and reinforce the employer brand.
Although maintaining consistency with your benefits offering is important, your global total rewards strategy should also acknowledge the diversity of each country and avoid using a one-size-fits-all approach.
For example, if your company brand promotes sustainability, you could implement sustainable mobility benefits across the board and across borders with local variation. In one country, this might be a bicycle subsidy, while in another country it might be a discounted travel card. With this approach, your offering reflects the company brand on a global level but works on a local level.
Four things to consider when implementing a global benefits strategy
Here are four things to consider when implementing an effective global total rewards strategy.
1. Access to data and insights
As the saying goes, “data is everything and everything is data”. Through a global benefits administration system, HR professionals can gain valuable insights into their global workforce and benefits usage.
With quick and easy access, HR can create reports which can be shared with executives to help with the facilitation of global decisions.
Last but not least, drilling down to country-specific data can assist HR with local law compliance (see point four below).
2. Seek, and you shall find
Eliminate the guesswork around benefits satisfaction by surveying your employees. Set up benefits surveys directly in your employee benefits portal, send text messages and push notification reminders to increase participation, and find out exactly what your employees want.
Knowing what benefits your employees want is extremely useful when compiling your offering. It’s better to present employees with what they want than have unused benefits, which ultimately go to waste.
3. One platform to rule them all
For any global benefits administration system to be effective, it’s crucial HR leaders can get an overview of their entire workforce and manage them from a single source.
It’s important to have a system that enables the global control of benefits, can manage complex tax calculations on a local and global level and can provide global insights, which can then be drilled down to a local level.
4. Understand local rules and regulations
Continuing from the point above, for any global benefits solution to be useful, it’s mandatory that it not only has knowledge of the local market and access to local suppliers, but also knowledge and understanding of local tax laws and regulations.
Here, we emphasise the importance of data again; using country-specific data can assist with local law compliance and help avoid any fines or penalties around local legislative requirements and regulations.
In conclusion, an effective global benefits strategy should reflect the company brand, be manageable from a single source, provide the framework for all countries but allow for local flexibility and adaptability in accordance to local laws.
This article is provided by Benify.
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