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With many countries rewriting their pension laws and accounting rules, employers are considering how to best structure their retirement plans. Across the globe, pension plan sponsors face a host of complex financial, risk and demographic issues. Increasingly, business issues are playing out on a world stage. Global competition, offshore outsourcing and cross-country mergers touch almost every company today. Controlling health care costs has long been a critical challenge in the United States. Increasingly, U.S. companies are looking for new models and companies around the world are responding with a variety of health and productivity strategies. An engaged employee - one who is motivated and understands his or her role in achieving business goals - is a tremendously valuable employee. How to attract, motivate and retain key talent is an age-old struggle. In today’s global economy, it gets even more complicated. Multinational firms face varying challenges around the world. In some countries, tightening labor markets are exacerbating ongoing cost pressures and causing companies to take a total rewards approach. In addition, firms are increasingly shifting to more centralized compensation and benefits structures to help ensure that key employees and executives around the world share the same incentives. Companies constantly face new regulatory requirements. Yet the pace and complexity of the new rules have stepped up in recent years. Employers are grappling with demands that their financial information be more transparent, that they fulfill governance duties regarding compensation, benefits and investment policies and that they comply with changing labor laws and regulations. In an effort to reduce costs, provide better service to employees and free up the HR function for more strategic efforts, companies around the world are taking a hard look at how they administer employee benefits and compensation programs. Watson Wyatt research shows that a combination of insourcing and outsourcing – rather than an all-or-nothing proposition – yields the best results. Companies that combine their in-house capabilities with selective outsourcing maximize savings and service.
Making use of appropriate technology and outside vendors is crucial to that effort.
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