Article
9 min read
How to Simplify Employee Benefits Tracking Across Multiple Countries
PEO
Global payroll
Author
Shannon Ongaro
Published
October 15, 2024
Last Update
October 15, 2024
Table of Contents
Understanding global employee benefits
Challenges in employee benefits tracking for global teams
Key steps to manage employee benefits tracking globally
Streamline employee benefits management with Deel
Key takeaways
- Using a centralized platform to manage benefits across multiple countries helps streamline operations, ensuring compliance and reducing administrative overhead.
- Regularly monitoring and adjusting benefits packages to meet country-specific legal requirements is crucial for avoiding compliance issues.
- Tailoring communication to different employee groups ensures they understand their benefits and can fully utilize them, improving satisfaction and engagement.
Tracking global employee benefits can be a major challenge for international HR teams. For example, in the US, PTO is not required by law, whereas in countries like Germany, employees are entitled to at least 20 paid vacation days.
Keeping track of these differences—along with health benefits, retirement contributions, and other perks—can easily lead to compliance issues if not handled properly.
A well-structured tracking system can help you improve compliance, manage expenses, and keep your workforce happy, no matter where they’re based. Here’s how to manage global benefits tracking with precision and efficiency.
Understanding global employee benefits
Employee benefits are perks, goods, or services provided to employees on top of their regular wages or salary. These benefits packages are usually a mix of:
Statutory benefits
Statutory benefits are benefits employers are legally required to provide to their employees. These are funded by employees, employers, and sometimes government contributions. These benefits differ across countries but usually cover health, retirement, and paid time off (PTO). Statutory benefits typically include:
Health insurance: In the US, the Affordable Care Act mandates that businesses with 50 or more employees must offer affordable medical coverage. In contrast, countries like the UK have government-sponsored healthcare, meaning employers may only need to provide supplemental or private options.
PTO: This allows employees to take a designated number of days off while still receiving pay. PTO generally includes vacation days, sick leave, and personal leave to ensure employees maintain a healthy work-life balance.
In the US, most employers offer paid time off, but it’s not required by law. But, in many European countries, employees are entitled to a specific number of paid vacation days per year, sometimes depending on their tenure.
Retirement contributions: Many countries require contributions to retirement or pension plans. In the US, employers typically offer employees 401(k) plans to build their retirement savings. In Australia, employers are legally obligated to contribute to superannuation accounts. Similarly, in the UK, employers must offer a workplace pension scheme they must fund.
Parental leave: This benefit offers paid time off to parents around the birth or adoption of their child, including maternity and paternity leave periods.
Unemployment insurance: A temporary financial support system for workers who have lost their jobs.
Social security and state pensions: These government-administered programs provide financial assistance in the form of retirement income, medical benefits, or disability payments to eligible individuals.
Read the mandatory employee benefits for US employees here: Guide to a Competitive Global Employee Benefits Plan
Supplementary benefits
These benefits are not legally required, but employers offer them to attract and retain talent. Some common supplementary benefits include:
Vision and dental insurance: These plans cover regular check-ups, cleanings, and discounts on glasses. Depending on the coverage, the cost can range from $10 to a few hundred dollars per employee each month.
Mental health support: Provides access to therapy, counseling, or wellness programs.
Childcare Support: Helps employees manage their family responsibilities, whether through stipends, onsite daycare, or flexible work schedules.
Remote work stipends: Offers reimbursements for home office equipment, internet, and utilities to support productive work-from-home environments.
Professional development perks: Offers tuition reimbursement or pay for job-related training courses to promote continuous learning and career advancement.
Fringe benefits
Unlike supplementary benefits, which enhance core benefits like health or retirement plans, fringe benefits offer non-essential benefits to improve employee experience and workplace satisfaction. Some common fringe benefits include:
- Company cars
- Meal vouchers
- Gym memberships
- Mobile phone plans
Tracking these benefits is vital for global teams due to regional differences in legal requirements and cultural expectations. Mismanagement can lead to dissatisfaction, legal issues, and increased costs.
Read more about fringe and non-cost employee benefits: Calculating Employee Benefits: Step-by-Step Guide
Global Hiring Toolkit
Challenges in employee benefits tracking for global teams
Every country has its own unique benefits administration requirements—the more locations you operate in, the more complicated it is to track employee benefits. Here are some common challenges global companies face in tracking benefits:
Regional compliance and regulations
Each country has labor laws and benefit requirements that often make compliance overwhelming for global companies.
For example, in the US, employers must make sure their employees have access to health insurance, Social Security, Medicare, Unemployment insurance or FUTA, workers’ compensation, and family and medical leave.
In many European countries, employees are entitled to mandatory benefits, including health insurance, retirement contributions, long-term disability coverage, paid maternity leave (up to 12 months), and spouse’s pensions.
In Asia, most employees have access to essential benefits like pension, maternity, unemployment, medical, and work-related injury insurance across nearly all countries.
In certain Latin American countries, such as Brazil, dental care is mandatory. Other typical statutory benefits in this region include retirement plans, paid time off, medical care, and sometimes a 13th-month pay.
Currency and exchange rate fluctuations
Paying a distributed workforce means paying employees in different currencies, which can lead to additional fees and costs. Each country also has its own tax and benefit regulations, adding another complexity to employee benefits management.
Exchange rates can also change quickly, affecting the cost of employee benefits and salaries. With Deel, you can fund payrolls in your preferred currency to execute payments accurately and on time.
Varied employee expectations
Cultural differences and local living costs significantly shape employees' expectations for benefits. For instance, in the US, employees often prioritize health insurance and retirement plans. In contrast, those in the Asia-Pacific region typically expect 13th and 14th-month salaries. These varying priorities make it challenging to create a standardized benefits package that meets the needs of all employees.
Data privacy and security
Human resource teams handle a significant amount of sensitive personal information, making data protection a priority for any organization. However, when a team works in many different places, data has to move between various systems and locations, which can increase the risk of breaches.
This is why different countries have strict data protection regulations, such as the GDPR in Europe and HIPAA in the US. Deel’s global solution adheres to compliance standards, employing advanced security measures and processes to protect your sensitive information effectively.
Deel PEO
Key steps to manage employee benefits tracking globally
Now that you know the challenges, it’s time to focus on a clear action plan that ensures accuracy, compliance, and employee satisfaction. Here are some steps to help you effectively track employee benefits across multiple regions.
Implement a centralized benefits management system
Many companies are turning to global payroll and benefits software that can ensure benefit programs are properly administered and employees can easily access their benefits information. Here are some important features to consider when selecting a platform:
Global compliance
When managing benefits across multiple countries, your benefits administration platform should handle various legal requirements and automatically update when legislation changes.
For example, Deel offers a Continuous Compliance Hub that monitors international regulations and alerts you to potential risks. This feature helps protect your business from legal issues and ensures your benefits are managed to the highest standards.
Integration capabilities
As a global company, you likely use different software solutions for various operations. Choose a platform that easily integrates with your payroll, HR information systems (HRIS), and other tools to streamline processes.
Data security
With data breaches becoming more common, your software should have strong security measures, such as encryption and regular security audits, to safeguard data during storage and transmission across borders. Deel uses encryption and multi-factor authentication to ensure effective management of employee information.
Flexibility and scalability
As your company grows, your benefits administration system should be able to scale with you. Look for a platform that can easily accommodate new employees and locations without requiring a complete overhaul. It should also be adaptable to different employee groups and offer customization options to meet diverse needs.
User experience
Choose a platform that makes it simple for employees to navigate their benefit plans. An intuitive design allows users to quickly find the information they need, whether they’re checking coverage details or enrolling in new benefit programs.
Comprehensive support
Select a provider that offers extensive support services, including training for your HR team, technical assistance, and customer service. This support should be available in all regions where your company operates, allowing you to resolve any issues quickly without disrupting your global operations.
For instance, Deel provides 24/7 support and a dedicated account manager to assist your team with necessary adjustments.
Stay updated with local compliance
Staying compliant is no small feat, especially with regulations changing constantly. One way to keep your company updated with local compliance is to invest in tools to help you meet regulatory requirements.
For example, Deel’s Compliance Monitor automatically tracks and interprets regulatory changes in 150 countries, covering private insurance, leave changes, pensions, and more.
But software isn’t the only solution. If you want to stay updated with compliance regulations, you need to use every resource available, from doing research to subscribing to newsletters from local legislators, law firms, and regulatory bodies. Another critical strategy is attending compliance training, seminars, or conferences.
Managing all of this can often feel overwhelming and time-consuming. If your schedule doesn’t allow for it, consider hiring a compliance consultant. Although this option may come at a higher cost, it provides peace of mind knowing that an expert is taking care of your business compliance.
Monitor and adjust benefits costs in real-time
Employee benefits represent a significant portion of labor costs, so keeping a close eye on the expenses associated with your global benefits program is essential. Real-time monitoring helps you identify patterns, anticipate rising costs, and make data-driven decisions to optimize your benefits package.
Real-time insights allow you to adjust benefits accordingly to maintain your budget while still offering competitive packages. By continually analyzing data, you can identify spending patterns on benefits that may indicate inefficiencies or cost-saving opportunities.
Historical data can also be a powerful tool for predicting benefit trends and making informed decisions. Analyzing past benefits costs, utilization, and exchange rate trends can help you gain valuable insights into potential scenarios.
Discover how to leverage US employee benefits trends to create a competitive package here.
Use clear communication with global employees
While employees know they have access to company benefits, research shows that 50% don't fully understand their coverage, while 80% don’t even bother to open communications related to them. This challenge intensifies in a global workforce, where cultural differences and varying regulations can lead to even greater confusion. To combat this, companies should implement clear and tailored communication strategies that effectively reach all employees:
- Leverage technology: Utilize a centralized platform for employee benefits information and self-service portals. This empowers employees to manage their info, reducing administrative workloads and relieving personnel time
- Tailor communication for diverse groups: Create personalized benefit offerings and targeted messages that resonate with different employee groups
- Use multiple channels and formats: People have different preferences for receiving information—you could use email, social media, webinars, podcasts, or videos to reach your audience
- Practice transparency and honesty: Share what your benefits cover, what they don’t, and the eligibility and enrollment criteria. Additionally, disclose any associated costs, fees, or limitations
- Encourage feedback and continuous engagement: Use surveys and focus groups to gather insights on improving your benefits communication, empower employees, and tailor your approach to meet their needs
Streamline employee benefits management with Deel
Simplifying global employee benefits tracking is key to staying compliant, managing costs effectively, and keeping your employees satisfied. By using centralized systems, staying on top of local regulations, and monitoring costs in real time, HR teams can manage benefits smoothly across different countries.
A global solution like Deel can help you offer and manage international benefits by:
- Providing a centralized benefits administration system
- Staying updated on local regulations through our Continuous Compliance Hub
- Managing US payroll, benefits, and compliance with Deel PEO
Want to see it in action? Book a demo with Deel today and discover how our global payroll and PEO solutions can transform your business.
About the author
Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.