Expats in Europe are set to pick up more competitive benefits packages by companies bidding to keep the best talent.
Benefit packages will be upgraded to include life insurance, company cars, meal vouchers and training by multinational companies to entice expats to stay in their posts.
The move is revealed in a survey of European employers by HR firm Mercer, which showed firms are tailoring benefit packages to suit the varying needs of different expats.
The research showed many companies offer ‘core benefits’ across several countries, like insurance, pensions, training, cars and meal vouchers, while others offer expats a more personal choice over picking their own benefits.
Pick and mix benefits packages
A third of companies say they already offer a benefits package, while another 30% let expats choose their own package. Those that do not offer ‘pick and mix’ benefits are considering doing so.
Nearly half of UK employers offer a wide benefits choice, followed by Sweden (44%) , Denmark (38%), the Netherlands (37%), Spain (35%) and Germany (28%).
“As the flexible benefits market has grown, one of the major attractions has been the ability of employee choice programmes to generate savings for the organisation while controlling the annual spend on benefits. There are a range of flexible benefits which attract no tax or national income contribution liabilities,” said Kim Honess, Mercer’s UK head of flexible benefits.
“Employee benefits are one of the most important means to help companies stand out as an ‘employer of choice’. In today’s highly competitive marketplace, where a diverse workforce expects a range of options, traditional, fixed benefits can seem outmoded.
Employers respond to lifestyle demands
“A competitive and diverse benefits package, which gives people the ability to adapt benefits to suit their lifestyle, is important when recruiting and retaining company talent. This seems to be key motivation for employers across Europe.”
Businesses across Europe are starting to offer competitive benefits packages – even in countries where they are not generally available, like Italy.
“Employers are increasingly aware of the need to respond to a diverse workforce. Age, culture, and family are all factors which can affect workers’ benefits needs. By taking time to understand and target the different demographics of a company, employers can get more value from their benefits and make sure their employees are engaged with the benefits they receive,” said Honess.
