The role of Global Benefits Leaders (GBLs) is undergoing a significant transformation, driven by the evolving needs of organizations and the changing landscape of employee benefits. Traditionally, GBLs were primarily responsible for overseeing and managing employee benefits programs. However, the scope of their responsibilities has expanded dramatically, shifting from a narrow focus on benefit audits and competitive assessments to a more holistic approach that aligns with the organization's broader goals.
The role of GBLs has evolved to become more strategic and employee-focused. The focus has shifted from routine oversight to a more comprehensive approach that includes attracting and retaining talent, providing a clear and consistent message across all regions, and ensuring that benefits programs meet the needs of a diverse and global workforce.
As a more strategic role, GBLs need to develop a broader skill set that includes total rewards leadership, data analytics, stakeholder management, project management and effective communication. By embracing these changes and focusing on innovation and collaboration, GBLs can play a pivotal role in shaping the future of employee benefits and contributing to the success of their organizations.
Prior to the COVID-19 pandemic, in some organizations, benefits management could be seen as a background function, primarily concerned with benchmarking, renewing premiums and maintaining existing contracts. However, the global health crisis has significantly transformed the benefits landscape, shifting the focus from routine tasks to more strategic and innovative approaches. It brought benefits to the forefront, highlighting the need for more comprehensive and employee-focused programs:
In today's continuously evolving business landscape, GBLs face significant challenges in managing costs while meeting the growing demands of employees in a competitive talent market. The role of these leaders has expanded beyond mere oversight to encompass a more strategic approach, focusing on cost management, talent attraction and employee experience enhancement.
With double-digit medical inflation in various countries making it unsustainable to maintain current benefit levels without strategic intervention, there is a great emphasis on finding innovative ways to curb costs, such as leveraging technology and harmonizing benefits across different regions. However, this harmonization is not just about cost savings; it also aims to create a consistent and positive employee experience, which is crucial for talent retention and attraction.
Another challenge is the misalignment between what employers think employees want and what employees actually value. Many employees have priorities that are vastly different from what employers assume and this disconnect can lead to ineffective benefit programs that fail to meet employee needs, thereby undermining the organization's efforts to attract and retain top talent. Further, in instances where benefit portfolios have been expanded in recent years based on feedback that employees want “more”, the need to hone these based on the programs employees truly value. To address this, GBLs are increasingly focusing on direct engagement with employees to understand their true needs and preferences. This includes conducting face-to-face meetings and roadshows, which can provide valuable insights that might not be captured through surveys or other indirect methods.
Despite these challenges, there are several opportunities for GBLs to make a meaningful impact. One key opportunity is the integration of benefits with other aspects of total rewards, such as compensation and career development. This holistic approach can help organizations create a more compelling employee value proposition (EVP). For example, some companies are exploring ways to combine salary, variable compensation and benefits to offer a more comprehensive package that resonates with different employee segments, especially hourly workers.
In conclusion, as the role of GBLs continues to evolve, the skill sets required are also changing. Several key areas where GBLs need to develop their expertise include:
