Research shows too few overseas employers capitalising on gap analysis

The latest research issued today by international benefits specialists at Everywhen shows just 42% of companies with overseas employees are carrying out gap analysis to help with the recruitment and retention of employees in a particular country or region. This means that they may be missing out on the full potential of the analysis and the benefits that gap analysis can bring to employees, and to the business itself.

Sarah Dennis, head of international at Everywhen explains: “Gap analysis enables employers to see the gap between the benefits they offer and what is required in the countries where their employees are based. It is important for employers to carry out this evaluation, not only to ensure that they are fully compliant, but also to benefit as a business from the information received.”

The research reveals that 76% of companies with overseas employees do carry out gap analysis, but the important factor is whether they are capitalising on the information and using it to its full potential. Reasons employers give for carrying out gap analysis include:

To ensure all types of staff are supported appropriately, e.g. local nationals, foreign nationals, etc. who may be entitled to, or require different benefits: 55%

To make sure we are offering the benefits required by law in different countries and regions: 47%

To make sure we are not offering benefits over and above what is required by law in different countries and regions (i.e. over-compensating unnecessarily): 46%

To make sure the benefits we offer are competitive and help us recruit and retain staff in a particular country or region: 42%

Employers commonly use gap analysis for legal and compliance reasons – to ensure that they are meeting the legal requirements in each country. However, only doing it for this reason could prove shortsighted. For example, there are countries in which it is not a legal requirement to provide Private Medical Insurance (PMI), but the state provision in practice may be poor. In such cases, gap analysis on a compliance basis would show the company as meeting the requirements, but the employee and, therefore, the business, would almost certainly benefit from the provision of PMI to ensure the employee remains fit and well and has a speedy return to work if they do have a medical issue. Equally, PMI, as with many other benefits, may not be a legal requirement but it may be essential to offer it to support recruitment and retention of talent.

Gap analysis can be extremely helpful in smoothing the complications associated with employing people overseas. The world is an unpredictable place and there will always be conflict, health issues, and unforeseen crises somewhere around the globe. Even in the seemingly most stable countries, unexpected and devastating events can occur - as has been made heartbreakingly clear by events such as the summer flash floods in Texas. By fully analysing any gaps in the employee benefits that are offered in each country, an employer may be able to mitigate the risks by aligning the health and wellbeing support appropriately, such as offering support in the event of crisis or conflict.

Companies with overseas employees must plan for the future to be prepared for the needs of their employees. Issues such as political unrest or a health scare can escalate quickly and it is vital that employers are prepared in terms of the support they offer. It is important to have a forward-looking strategy and growth plan. Building a benefits plan is not just about carrying out gap analysis on the here and now, but truly understanding the requirements to future-proof a business, so putting support in place for at least the next three to five years.

Many companies rely of financial advisers and tax consultants for gap analysis. This tends to provide scrutiny on whether the employee benefits being offered meet the regulations in a specific county and provide compliance.

However, health and wellbeing support needs to go further, especially for overseas employees. It is far more appropriate to use an international employee benefits expert. They will be able to analyse the offering and requirements in much wider terms, such as how the support can help to recruit and retain employees, keep them healthy, happy, productive and at work, therefore bringing benefits to the business too.

Sarah Dennis concludes: “Gap analysis should enable employers to stay ahead with regards to wellbeing, which is becoming increasingly important across all aspects of supporting a business, particularly overseas.”