Top tips for managing PMI across a multinational workforce
New research from the Association of British Insurers (ABI) found that more than half (57%) of people viewed health insurance as an important factor when choosing a new employment role. They also highlighted that seven out of 10 (69%) said they would consider taking out a health insurance policy if it was offered by their employer.
But offering PMI across different countries can be challenging for employers, and it’s not always possible – or even appropriate – to simply offer a one-stop solution for all.
Considerations such as how good the local health system is, as well as the size of the expat workforce versus local employees, come into play.
Employers also need to understand local rules and regulations, and the attitudes and expectations of workers in different countries. Whether employers are reviewing their existing international PMI coverage or looking to extend it for the first time across borders, here are five key tips for getting this right:
1. Take a holistic view
When considering PMI for a multinational workforce it can be tempting to look at each location separately, but it’s best to start as a whole and pull in all the data from across the business about each region. This should include the size of the workforce and whether there are expat or local employees, the benefits currently offered and what the state health provision is. Having this data will enable employers to see where the potential gaps are and tailor PMI support accordingly.
2. One-stop shop not always best
It may be easier from an administration perspective to offer one PMI solution globally, however it is not always appropriate. Different countries will have varying healthcare standards, costs and regulations. It may not be necessary to prop up benefits with PMI if access to health care is particularly good, especially if the workforce is made up of local employees.
Employers need to balance administrative ease and budget with appropriate coverage to meet the needs of their employees in different regions. Spending money where it’s not needed is a waste and could be better targeted at a different benefit that has more value.
3. Consistency and clarity are key
Communicate clearly and consistently about what is and isn’t provided in any PMI policy. Benefits evolve over time and a company may start with five employees going to work overseas, so an expat PMI policy may be the best option. However, as the company grows and takes on a larger proportion of local staff, a different policy may be more cost effective.
Keeping staff in the loop is important as removing or changing benefits could result in unhappy employees. Regularly reviewing and updating employees will help them make informed decisions about their healthcare and understand what is and isn’t going to be covered in the future and, importantly, how they can access the benefit when they need it.
4. Consider value added services
Employers also need to review the additional value added services increasingly offered by PMI providers, such as access to international virtual GPs, employee assistance programmes, as well as wellbeing support and discounts. These add-on services tend to evolve and can provide more comprehensive support for employees as well as improve the overall employee experience. These should be factored in when choosing or switching provider.
5. Work with a global consultant with access to local markets
A common theme for companies operating internationally since the pandemic is global benefits becoming more centralised, but also including local elements. The challenge for multinationals, especially those operating in several countries, is gaining an understanding of the local market and the different health needs of their employees.
Working with a consultant that has a global presence and local expertise can help them navigate the complexities of different healthcare systems, understand local regulations and provide guidance on the best PMI cover for multiple countries. This includes helping to gather workforce data and negotiating with providers to ensure employers get the most cost-effective PMI solution for their requirements.
To conclude
Widening access to benefits such as PMI across multinational workforces is becoming more commonplace as companies look to attract and retain the best people, whilst ensuring their workforce is looked after against a backdrop of struggling healthcare systems globally.
A consultant can often negotiate the most cost-effective and appropriate policies as well as give advice on local regulations, taxes and culture to ensure employers maximise their budget. They can also help conduct a review of existing provision and make recommendations to ensure policies are still fit for purpose.
In partnership with Howden Employee Benefits
Howden provides insurance broking, risk management and claims consulting services, globally. We work with clients of all sizes to provide dedicated employee benefits & wellbeing consultancy.
