Social Security • Employer’s Philosophy • International HR Strategy
Defining the benefits of your globally mobile personnel depends on statutory Social Security implications and on your company’s own employment philosophy.
Statutory social security obligations
Regarding globally mobile personnel, including field service experts, regional managers, international assignees, expatriates and your subsidiaries’ key persons, it is the country of employment which determines the employer’s Social Security and labour law obligations.
However in many parts of the world social security is lacking and public coverage is limited. Adequate protection is therefore essential for your globally mobile personnel.
Employer’s philosophy & Non-statutory employee benefits
Every company is aware that supplementary employee benefits contribute to attract, retain, reward and protect an employer’s workforce, while affecting at the same time its employer’s image.
Supplementary employee benefits are non-statutory. They are to complement fully or partly a country’s specific social security provisions and are solely defined by the employer’s own HR-philosophy.
It is important to be aware that any HR-requirement regarding Employee Benefits can be met by one of the following solutions :
While Group Insurances are always to be subscribed by the employer, their funding can either be employer-funded, employee-funded via payroll deduction or a combination of both.
Group Insurances can be subscribed for one single benefit up to all four benefits (Healthcare/Life/Disability/Pension), can be limited to specific personnel categories and can also include a number of eligibility provisions
The subscribed benefits by the employer can provide very different levels of protection, varying from basic up to generous indemnities, with a few or many contractual exclusions
International HR Strategy
For multinational companies with subsidiaries in different countries, there are no alternatives but to manage their locally employed workforce at each subsidiary level, whether for statutory or non-statutory employee benefits.
However, regarding the non-statutory employee benefits of your globally mobile personnel, a dedicated international group insurance contract subscribed at headquarter’s level offers the following advantages:
Segments a notably sound and low-risk population, resulting in lower pricing conditions
Meets your company's coverage requirements
Covers with great flexibility and minimal administration each eligible personnel member
Can be subscribed for one single benefit up to all four benefits (Healthcare/Life/Disability/Pension)
Enables the creation of an unlimited number of subgroups, whether by country, by subsidiary or cost center, by job function or employment category, each with its distinctive indemnities
Pools your globally mobile workforce, enhancing the transparency of annual claims statistics and facilitating renewal negotiations