Global Employee Benefits: Strategy Guide for 2025

Designing a global employee benefits package that works for a distributed team is one of those challenges that sounds straightforward until you're actually in it. The right mix of benefits can be the difference between a cohesive, motivated workforce and one that's quietly eyeing the door. That's where a thoughtful benefits strategy becomes essential—not as a box-ticking exercise, but as a genuine signal of how you value your people.

A well-crafted global employee benefits strategy isn't just a nice-to-have. It reflects an understanding that your team members are building lives alongside their careers—lives that look different in São Paulo than they do in Stockholm.

The right benefits package addresses those differences while demonstrating real commitment to your team's well-being. It should also align with your company's goals, support long-term growth, and keep you compliant with local labour laws.

In this guide, we'll walk through what global employee benefits actually include, why a strategy matters, and how to build a package that works across borders—without losing sleep over compliance.

Key Takeaways

• 80% of employees would choose better benefits over a pay raise, making competitive benefits packages as important as salary for talent attraction and retention.
• Global benefits strategies require balancing mandatory local compliance requirements with supplementary perks, as statutory benefits vary significantly across countries like Australia's mandatory health insurance versus other nations' pension contribution requirements.
• Younger workers expect flexible hours (51% cite as major concern), mental health policies (91% of Gen Z expect these), and career development opportunities that improve millennial retention by 85%.
• Employer of Record services handle payroll, tax compliance, and benefits administration across multiple countries, enabling companies to expand internationally without establishing legal entities in each jurisdiction.

Global employee benefits vary by company and region, but a well-balanced package often includes a mix of mandatory and supplementary benefits to meet the diverse needs and expectations of a global workforce.

A survey by Aon shows what employees expect from companies in terms of benefits:

How to create a global employee benefits package?

Here are a few steps to help you determine the right mix of benefits for your distributed workforce.

1. Define yourbudget

Before you design anything, get clarity on what you can actually spend. Consider:

• Current headcount and growth projections: How many people will this need to cover in 12–24 months?
• Per-employee allocation: What's realistic given your runway?
• Country-specific costs: Use industry reports or tools like Teamed's employment cost calculator to compare markets

If you're hiring in countries without a legal entity, anemployer of record (EOR) can handle compliance so you don't have to.

You can use this free employment cost calculator by Teamed to compare the employment costs of different countries.

2. Understand government laws

Research and understand the labour laws and regulations in each country where you have employees. Different countries have varying requirements for mandatory benefits, such as health insurance or retirement plans. For example, countries like South Africa require employers to mandatorily contribute to the Workers' Compensation Fund.

Understanding and complying with such laws from multiple countries can be challenging. An EOR like Teamed can help you by taking on the legal responsibilities of an employer, which includes compliance with local labour laws and regulations.

3. Conduct a competitor analysis

Look at what competitors offer—globally and in your target regions through proper salary benchmarking. Thishelps you understand industry norms and identify where you can differentiate.

LinkedIn, Glassdoor, and industry salary reports are useful starting points.

4. Prioritise the benefits you want to offer

Thoroughly learn about the labour markets you're targeting—what workers expect, what governments require, and what competitors offer.

Here are a few factors to consider when deciding which benefits to include in your package:

• Current employees' satisfaction regarding their benefits package and their opinion on it.
• Are you trying to be more cost-effective? Read more on how to pay international employees in a manner that's competitive and fair.
• Cultural requirements
• —For example, in countries where preventive healthcare is a cultural norm, providing regular health check-ups or wellness programs may be highly valued.

Now you can start building your global employee benefits package:

Mandatory benefits: benefits required by local laws, such as health insurance and retirement plans

Core supplementary benefits: universally valued benefits, such as paid time off, flexible work schedules, and wellness programs

Tailored supplementary benefits: offerings like transportation allowances, childcare support, or supplementary healthcare programs

Communication and education: informational workshops, online guides, consultations with experts, and user-friendly benefits portals

The key to a cohesive global employee benefits strategy is to coordinate the links between different elements. This will help align the benefits package with organisational goals and satisfy the diverse needs of the workforce.

Global employee benefits: Trends and statistics

These benchmarks can help shape your priorities:

InsightWhat it means for youSource1 in 10 workers would take a pay cut for better benefitsBenefits can outweigh salary in candidate decisionsForbes51% say flexible hours are a major concernWork-life balance isn't a perk—it's expectedForbes30%+ of 18–41-year-olds want pet insuranceYounger talent values non-traditional benefitsForbesCareer development improves millennial retention by 85%Growth opportunities are a retention leverGetbridge61% evaluate work-life balance when considering offersBalance-focused benefits influence hiring decisionsStelfox91% of Gen Z expect mental health policiesMental health support is non-negotiable for younger workersZapier65% of employees who feel cared for are more loyalPerceived care drives retentionMetLife

"Support for our candidates was hugely important. We wanted a solution that felt like just another branch of what we do internally but took care of things that are outside of our expertise. For this, Teamed delivers on all fronts!" - Marta Silva, Tekever

How an EOR can help you build a global benefits package

If you're expanding into multiple countries without legal entities in each, an EOR handles the parts that would otherwise keep you up at night: payroll, tax compliance, benefits administration, and labour law adherence.

Specifically, an EOR supports your benefits strategy by:

• Local expertise: EORs have a deep understanding of labour laws, tax regulations, and employment standards in various countries. They can provide guidance on mandatory benefits, such as health insurance, retirement plans, and leave policies.
• Scalability: As your company expands into new countries, an EOR ensures the hiring company remains compliant to local requirements.
• Customised global benefits: Each company has unique requirements when building a global benefits strategy. Teamed can help tailor your benefits package according to your budget and industry norms.
• Benefits benchmarking: EORs can provide insights into industry standards and practices, helping you benchmark your benefits package against competitors to attract and retain top talent.
• Employee communication: EORs can assist in communicating benefits information to your global workforce in a culturally sensitive and locally relevant manner. This is done by tailoring messaging, materials, and delivery methods to align with the cultural norms and preferences of each region.

With an EOR by your side, you have a guide who understands all these factors and who has experience in it.

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