I’m an expert in employee recognition and rewards. I understand the nuances of providing strategic employee recognition programs around the world – and the nuances are many. (These posts highlight just how complex that can be in India and China, as an example.)
I am not, however, an expert on the wider field of global employee benefits, a critical component of comprehensive compensation package. Healthcare benefits alone are enough to give any global benefits manager a headache. Looking at various benefits offered in countries around the world offers a good case study in knowing and understanding local needs and wants if your goal is to offer a compelling total rewards package for your employees, everywhere in the world.
Mercer’s 2014 Worldwide Benefit & Employment Guidelines is a quite interesting report on what is offered around the world. The infographic below (from Mercer) highlights several particularly unusual offerings (at least to my Irish eyes).
Taking each in turn:
Romania: Heating Expenses – A terrific way to show employees you care about their (and their family’s) basic well-being. The additional focus on sustainable energy sources is an added incentive.
Russia: Extra Vacation – Perhaps not an unusual benefit overall, but targeting it to those who work in tough climates makes very good sense.
Brazil: Prison Pay? – If an employee of goes to prison, the family receives 80% of his or her salary. I had to dig into this one a bit more. In reality, it’s called “reclusion-benefit” and applies only to those with a valid work status who contributed to social security. The intent is to support the children of the imprisoned so they do not suffer unduly. With that context, this benefit makes more sense.
Saudi Arabia: Wise Medical – If you choose to engage in dangerous activities, don’t expect your company medical plan to cover any resulting injuries. My American colleagues can likely see the greater benefit of this “you play, you pay” (as Mercer calls it) medical policy.
Morocco: Wedding Benefits – I wonder if this one is a bit of social engineering, but parents also get time off for their children’s wedding. Considering how much more elaborate weddings seem to be getting regardless of country, I can see the appeal of this benefit.
China: Buy a Home Plan – I know many organizations will offer planning tools or even saving mechanisms to help employees reserve salary for expenditures of their choice, but China takes it further with mandatory contributions to the future purchase of a home.
France: Please Leave – I labeled this one a bit tongue-in-cheek, as I think it’s quite a good idea. Innovation and job creation are essential to any country’s economic strength, but many people are afraid to brand out on their own with the safety net of regular paycheck provided by somebody else. France’s efforts to encourage start-ups helps alleviate this fear.
As with any global compensation plan, balancing the needs of the local market with the expectation of (usually) leaders in the country where your headquarters are located is quite delicate, indeed. Creating localized benefits plans that matter, ensuring leadership understands the value, and communicating appropriately to appropriate audiences (to avoid “I want that benefit, too”) is the reality many of you face very day. I must say to you, “Kudos and job well done.”
What’s the most unusual benefit in your organization? What’s the value in offering it?
As Globoforce’s Head of Strategic Consulting, Derek Irvine is an internationally minded management professional with over 20 years of experience helping global companies set a higher ambition for global strategic employee recognition, leading workshops, strategy meetings and industry sessions around the world. His articles on fostering and managing a culture of appreciation through strategic recognition have been published in Businessweek, Workspan and HR Management. Derek splits his time between Dublin and Boston. Follow Derek on Twitter at @DerekIrvine.
Great post Derek! You really picked the unusual ones!
Posted by: Jacque Vilet | 10/27/2014 at 01:30 PM
Anything and everything that can be considered of value has been offered by some employer at some time somewhere. When I re-wrote an employee policy manual years ago, the existing wedding pay policy inspired my 7/8/2011 divorce pay" article http://www.compensationcafe.com/2011/07/divorce-pay-a-modest-proposal-for-a-new-policy.html.
My last employer had salmon fishing trips for key contributors. They were working retreats on tugboats that followed the fish http://www.tugboatcruise.com/. Some board meetings were held with skiffs lashed together on the Inland Passages.
Posted by: E. James (Jim) Brennan | 10/27/2014 at 03:57 PM