Transformed US Benefits? Merging Towards The Global Trend
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Enrollment time: Hot topic lately. Also, popular among all talks these last few years has been the topic of Healthcare and benefits. Consequently, benefits have slowly but surely taken a new path in HR, apparently mimicking those offered globally.
Eye Opening Chart: Who Stands out?
Looking at benefits on a wide scale, we know that they are, in fact, particular to each country. They differ widely from country to country. In fact, even the most common benefits among developed economies are far from being equal: Denmark and France are on top of the chart while Ireland and the U.S. are at the bottom, ranking respectively 7.3 and and 7.2 vs. 2.3 and 0.3 on a scale score of most to least generous, the U.S being a benchmark (Llewellyn Consulting Feb 2016 report). Different societies, different standards. Check it out here. Evidently, Europe is always leading but do other countries stand out as well? One could mistakenly think that benefits are quasi-non-existent in less developed countries. Nothing could be farther from realities: they simply take other forms. One fact is that there is insufficient survey data related to non-multinationals to ascertain benefit policies and practices of local companies in less developed economies. Furthermore, it takes a good understanding of local cultures and policies to understand the forms of benefits offered in any given country. What US workers and employers could see as a "requirement" could in fact be some form of employee benefits, such as "mandatory" vacation in Romania, or such as the still clear division between sick days and vacation days in most countries versus the now more common a pool of paid time off in the US. Compare worldwide leave policies here. Conversely, articles on benefits offered in the US that lean towards a new form are emerging. US employers are facing increasing competition in talent attraction and retention and are getting creative, mirroring to some extent benefits more commonly seen on a global scale.
Defining Benefits on a Global Scale
Benefits should be what it really means: benefits. That is, NOT an entitlement. Most benefits are non-mandated ones- granted the now not so new Healthcare Law has somehow changed that notion -. While in other parts of the world healthcare benefits was the least of all benefits, in the US it has not always been the case. Indeed, in most countries, the main advantage of being employed would be to have your healthcare "supplemented" thru your employer, in one from or another, whatever the size of the organization. A bit confusing? When employees were surveyed on the importance of health benefits, results showed that while only 18% of a potential extra budget would be allocated by all (employees surveyed) to health benefits globally, in the US it would reach 29%. Indeed, being "employed" globally is merely a path to better (enhanced), and easier access to healthcare, if not guarantee to "better" (quality) care, since basic care is/was universally offered in most instances thru one organization or another. From a different perspective, accessibility to better quality care at a lesser cost is more relevant to salaried workers vs. self-employed or hourly workers. Consequently, healthcare benefits was not really on the bargaining table whenever hiring for "valued" positions, nor had it a real effect on attrition and talent management. Instead, "benefits" (a more general notion, globally) refers to more than, if not anything but, healthcare. In the US those benefits would be referred to as "perks".
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