Multinational corporations have to deal with a significantly greater number of government regulations, while also managing a workforce that is scattered across the globe and has varying expectations about their employer-provided benefits.
According to a new survey from Aon Hewitt, the 2012 Corporate Governance of Global Employee Benefits Study, many multinational companies are working to increase corporate oversight and control of benefit programs. The driving forces behind these goals are the attempts to mitigate risk and ease their budgeting processes.
"More and more companies want to have a better line of sight and at least some control over the benefits decisions made by their local operations," said Amol Mhatre, global benefits strategy and solutions leader at Aon Hewitt. Mhatre noted that financial planning played a big role, but said companies were also working to keep tabs on any reputational risks or resource constraints in their various locations.
The way multinational companies manage their benefits programs not only impacts finances, but can also make or break recruiting efforts. According to a MetLife study released in March, more employers were increasing their focus on providing employee benefits as a means of boosting human capital and retention rates.