10 Questions for Strategic Global Benefits Management

10 Questions for Strategic Global Benefits Management

Stephanie Sterling

I nternational Benefits Lead Orica

Watkins, Colorado

The opinions expressed in this presentation are those of the speaker. The International Society and International Foundation disclaim responsibility for views expressed and statements made by the program speakers.

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Objectives

To gain an understanding of:

? How to develop a philosophy and strategy for global benefits by asking the right questions

? Ways to use benefits to support your business around the world ? What's different about benefits outside of North America

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1. What does our business need globally?

? A global benefits philosophy should reflect the needs of the company as a whole

? Principles should be broad but provide guidance in future decision making

? Balance between global standardization and local customization

? Consider where this philosophy needs to be applied to existing practices

? Example:

Our global benefits strategy is to provide compliant and costeffective benefit programs measured as competitive against current market norms at the 50th percentile. Our future goal will be to harmonize existing benefit packages in each country under a "one country, one plan" concept.

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2. What is a benefit?

? The answer is more complicated outside of North America, and the answer will vary between companies and countries

? The line between compensation and benefits can be blurred

? Many cultures' norms include what we would view as non-traditional benefits

? Our standard package of M/D/V/STD/LTD/Life doesn't apply

? What we call "voluntary benefits" are uncommon

? Ask in many different ways to get the full picture

? Use market data on prevalent benefits as a starting point

? Often no supplementary benefits are prevalent ? Fully-insured benefits are much more common even for

larger groups

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3. What is currently in place?

? Evaluate compliance with statutory benefits, pension liabilities, supplementary insurance benefits, noninsurance benefits, gifts, service awards

? Note that many things we consider comp/rem may be called a benefit, e.g., 13th or 14th month payments, bonuses, housing allowances, car allowances

? Estimate costs, both external (e.g., premiums paid) and internal (e.g., time local staff spends on administration or problem solving)

? Connect with local vendors and brokers

? When was the last time the policies were marketed to other insurers?

? Why were these partners chosen/maintained?

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