2010 global employee benefits survey results presentation executive summary
TRANSCRIPT
2010 Global Employee Benefits Survey Results Presentation
June 10, 2010
2010 Global Employee Benefits Survey Results Presentation
June 10, 2010
2010 Participation2010 Participation
• Survey represents over 10,000 globally mobile expatriate and TCN employees and over 150,000 employees worldwide.
• Despite severe economic downturn in 2008 and 2009, limited evidence that plans moved to scale back benefits or shift additional costs to participants
Less than 20% of the participants reduced benefits for ’10The median employer subsidy for health care declined from 80.4% to 79.1%
• The median medical cost increase was 5.3% but a wide range of responses indicate that some plans experience greater cost pressures than others.
• There is a demonstrated move to reach out and communicate more effectively with international assignees.
Executive SummaryExecutive Summary
• Retiring Boomers– Delayed retirement by first wave following downturn in DC
retirement assets– Increasing trend of retirements as market works through long-
term effect of escalated unemployment (U.S. issue)
• Strained Social Welfare Systems– Economic pressures felt beyond Greece – UK scale back of
National Health system – German response of increased taxes and reduce benefits
• Shift in Talent Attraction – Move to developing/emerging economies for talent brings new set
of issues as immature Social Welfare Systems places different burden/requirement on organization
Executive Summary: Executive Summary: (Macro Trends and Their Impact on Global Programs)(Macro Trends and Their Impact on Global Programs)
• Pattern of differentiated benefits between Services and Drillingsegments of the Energy sector
• Median health benefits (Outside US)– Individual deductible - $200– Individual out-of-pocket maximums - $3,000– Coinsurance level (including Rx) – 90%
• Health subsidy level declined slightly to 79%
• Full suite of ancillary benefits offered – 2x life coverage most prevalent
• DC retirement benefit match declined slightly to 5%
Executive Summary: Executive Summary: US Expatriate employeesUS Expatriate employees
• Typically included on US health and dental programs. This will be an evolving issue moving forward as more aspects of Health Care Reform are implemented.
• Health care benefits typically offer first dollar coverage while including other limits to benefits.
• Smaller groups of TCN’s may be included on US welfare plans. Significant variations in underwriting tolerance for foreign risk.
• Offshore savings plans less frequently offered to TCN’s. This may be an emerging attraction/retention issue.
Executive Summary: Executive Summary: NonNon--US Expatriate or Third Country National employeesUS Expatriate or Third Country National employees
• HQ oversight and direction on vendor selection, plan funding and plan performance for Local National populations in a little over half of the organizations surveyed.
• Participants very satisfied with Multinational pooling results.
• Supplemental health care was the most commonly offered benefit.
Executive Summary: Executive Summary: Local NationalsLocal Nationals
• Limited evidence of organizations reducing frequency or duration of international assignments.
• Some evidence of cost shifting to employees as health care subsidy has declined. Overall benefits remain robust.
• Greater effort being put into global communications.
Executive Summary: Executive Summary: Other FindingsOther Findings
Contact InformationContact InformationFull survey results available to survey participants only. 2011 interest list being formed now.
Cliff CaldwellCliff CaldwellGlobal Solutions Practice Leader
Employee Benefit Solutions(832) 476-8365
Brent GilotBrent GilotSurvey Consultant
Employee Benefit Solutions(832) 476-0493
Casey LoydCasey LoydBusiness Development LeadEmployee Benefit Solutions
(832) [email protected]