The large employer approach to global benefits governance strategy has become more comprehensive, largely due to philosophical shifts. A majority of companies started with a focus on retirement plans, which has evolved to include risk and medical benefits as well as leave, well-being and allowances based on company priorities. Leading multinationals are shifting from separate strategies for U.S. and international benefits to a single global benefits strategy to provide greater consistency for benefits across their organizations. Furthermore, the COVID-19 pandemic has exposed gaps in benefit offerings and has shifted the focus from market median competitiveness to ensuring that there is a minimum floor of benefits to meet the employer’s critical workforce needs. As the talent pool tightens, companies are evaluating what benefits they will retain to attract employees in a sustainable manner and meet their business strategy needs. These influences and demands have led to a more thorough and inclusive global strategy (Figure 1).

As companies build out their strategy, they should keep in mind four key components outlined in Table 1:

What Should Employers Keep in Mind when Building Their Strategy?

There are two pitfalls to avoid when developing a global benefits strategy: transplanting a U.S.-centric strategy across the globe and not shifting global benefits strategy to align with global business strategy. A successful global benefits strategy should focus on a broad core roadmap that can be adapted and adjusted to meet local business and workforce needs. Typically, global benefits strategy is reviewed less often than global business strategy; therefore, companies that adapt to meet business needs more quickly find more success and have a seat at the leadership table.