Global employee benefits: strategy guide

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

• Benefits are part of the job offer, so plan them alongside salary, not after it.
• Every country sets its own statutory benefits. Australia, for example, requires employers to pay superannuation (retirement savings) contributions for eligible employees, per the Australian Taxation Office.
• Younger workers often ask about flexible hours, mental health support and career growth, so check what matters in each market.
• Staff abroad can still create UK admin: HMRC benefit reporting, data transfer rules and social security cover.
• An employer of record runs payroll, tax and benefits administration in each country, so you can hire abroad without setting up a legal entity there.

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.

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 your budget

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, an employer 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 register with the Compensation Fund, per the Department of Employment and Labour, which covers workers for injuries and diseases caused by their work.

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. This helps 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.

"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!" - 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. An EOR can help tailor your benefits package 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.

How do you manage international benefits administration?

International benefits administration comes down to three jobs. You report benefits to the right tax office, move benefits data lawfully, and check which country's social security covers each person. Who makes those calls, head office or each country, is your choice. Our guide to centralised and decentralised benefits covers it.

Start with tax. If the person stays in UK tax or National Insurance, their benefits in kind still need reporting. A benefit in kind is a perk that is not cash, such as private medical cover. Per HMRC, employees who are not UK resident are not taxed in the UK on earnings for work done overseas. The way you report is also changing. Per HMRC's interim guidance, company cars, fuel, vans and medical benefits must go through payroll from 6 April 2027.

Next, the data. You can send benefits data from the UK to any EEA country without an extra safeguard. UK adequacy regulations cover every EEA country, per the ICO. Other countries usually need a safeguard before you send it. Health data, such as medical cover forms and sick pay records, is special category data and needs the most care, per the ICO. Our cross-border data transfer entry explains the terms.

Then social security. Per HMRC, a UK employee sent to work for a short time in an EU country, Gibraltar, Iceland, Liechtenstein, Norway or Switzerland can stay in UK National Insurance for up to 2 years. They need a certificate of coverage. If they move for good, they usually pay into the new country's system instead. Our A1 certificate guide and our page on a UK company paying an overseas employee go further.

Which of these rules apply depends on where each person lives, how long they stay abroad and who employs them. Talk to an Expert at Teamed to work through your team's situation.

Frequently asked questions

Do benefits in kind abroad still go on a P11D?

They do if the employee is still taxed in the UK on them. Per HMRC, an employee who is not UK resident is not taxed in the UK on earnings for work done overseas. From 6 April 2027, company cars, fuel, vans and medical benefits must go through payroll instead of a P11D.

Who administers benefits under an employer of record?

The employer of record does, because it is the legal employer in each country. It runs statutory benefits through local payroll, and you decide which extra benefits to offer on top.