Global benefits strategy: A Q&A with Katherine Loranger

Every year, HR teams and benefits pros have to prepare and execute a successful open enrollment. With the beginning of fall, it is time to prepare your company and make sure you have a global benefits strategy in place.

Katherine Loranger, chief people officer at Safeguard Global, a global workforce management company, says one common challenge during open enrollment season for global HR teams is compliance. Every country has different legal requirements for benefits, such as PTO and health plans, and global HR teams must develop policies that are both compliant and competitive across many global markets.

Open enrollment period is in full swing. What are some of the most common challenges for global HR teams during this time?

One of the most common challenges global HR teams face during open enrollment season is ensuring compliance across their global workforce. Each country and region has vastly different legal requirements for employee benefits – payroll, parental leave, vacation time and health care plans are just a few examples. What is required in Mexico varies from India to the UK and everywhere in between.

It’s enough to make any global HR team stressed without the proper strategies in place. Eighty-two percent of HR leaders report open enrollment season as the “least wonderful” time of year. I’ve seen firsthand how exceptionally busy open enrollment can be for HR teams. Not having the most up-to-date information about the laws and requirements surrounding benefits in each global market can make this time even more stressful. Not to mention it also puts the company at risk of government scrutiny and fines; it’s important to have a plan in place to ensure compliance before benefits plans are determined for the year.

Read more: Is your hiring process ready for global talent?

What are your top tips for global HR teams to easily maintain compliance when creating benefits packages for employees?

1. Partner with local expertise. There is no apples-to-apples comparison when it comes to global benefits. The legal requirements and benchmarks for benefits are dramatically different in each market, region and country. Partnering with local experts that reside in the market where your employees are based can help teams overcome these challenges. Not only will they have the insight needed to ensure policies are compliant, but they can also help navigate cultural nuances and differences when working with in-country providers.

2. Invest in technology. With the growing use of generative AI tools in the HR landscape, there is a real opportunity for HR leaders to maximize the value of AI to help compile and refine their benefits packages — and ensure compliance. AI has the power to collect thousands of data points across a variety of regions, including the different requirements and regulations surrounding benefits. Invest in technology tools that help global HR teams access this data with ease.

3. Develop and implement a global benefits strategy. In a recent survey, 78% of employees reported they are more likely to stay with an employer with a strong benefits program. In today’s landscape, companies must provide competitive benefits for employees to retain and attract the best talent. Developing a global benefits strategy allows companies to understand the statutory minimums in each country to ensure compliance, but also ensure the benefits being offered are attractive in each market. The benefits you offer directly translates to your commitment toward employee wellness, so it’s important to be strategic in your approach.

What is a global benefits strategy? How can global HR teams get started with implementing one?

A global benefits strategy is a plan that ensures a company’s benefits offerings are compliant within each local market employees are based in, while also aligning with the company’s unique benefits philosophy. However, it’s important to note that global does not mean universal. As a result, employees based in different regions or countries will have different benefits offerings. Having a global benefits strategy ensures that benefits offerings are equitable and competitive in each individual market a company operates in.

Before implementing a global benefits strategy, companies must first determine their benefits philosophy. Leaders must answer the question, “who do we want to be as an organization? What type of talent are we looking to attract?” The answers to these questions will inform your approach to global benefits. Employers looking to hire top talent in a competitive market will have a different strategy than an employer who is looking to offer a baseline program in an emerging market, for example.

Once a benefits philosophy has been established, HR teams should work closely with company leaders to develop and implement a strategy. Common components of a global benefits strategy include forming a committee, identifying objectives, developing guidelines and conducting audits. For a global benefits strategy to be successful, there must be buy-in throughout the entire leadership of an organization.

What is your advice for communicating benefits changes and updates to teams?

Communicate early and often. As HR professionals, we’re aware that open enrollment season is coming, but for most others, this is not something on their radar – until we put it there. More often than not, there’s a lot of other end of quarter events happening and, truthfully the gearing up for strategic planning for the year ahead means most people have full plates. Advance notice means people can set their schedules up to attend meetings about the changes, spend time reviewing materials and making the selections that best fit their lives in the coming year.

Communication also includes what you communicate, not just when and how much. It’s valuable to share with employees (at a high level) what’s happening in the benefit market, how much costs are going up, how you compare to peer benchmarks and what the company considered when establishing the new year’s plan. This transparency emphasizes the benefit value.

Related: Meeting the compliance challenges of hiring a global workforce

Are there other times during the year where HR leaders need to be evaluating their benefits offerings? If so, when, and how frequently?

HR leaders should be having regular and consistent conversations with employees to ensure the benefits being offered are still working for them, or if there is anything new or additional that should be added or changed. These conversations are crucial during open enrollment season, but should also continue throughout the entire year because employee needs evolve over time. HR teams must have ongoing communication with employees to ensure the benefits being offered are aligned with their needs.

It’s also important to keep an eye on adoption and check in quarterly. The reality is, many of your emails about benefits enrollment or new perks may get ignored or pushed aside. Communicate throughout the year, in multiple formats, about what is available to employees and make it simple for them to enroll. Try information sessions, calendar reminders, awareness months, etc. to remind your team all the amazing benefits that are available to them!

When it comes to reviewing global benefits benchmarks and requirements, global HR teams should be conducting research at least one per year to ensure polices are still compliant and updated.