Compensation Case Study - Establishing a globally equitable wellbeing reimbursement benefit

    Mar 09, 2022 @ 02:39 PM / by Andrea Downing

    Comp case-1

    Client Challenge #7:

    A technology client was researching solutions to provide an equitable wellbeing benefit to employees across the globe. They intended to reimburse up to USD 2,000 per year for costs like gym memberships, exercise equipment, or continuing education; however, they needed a way to modify the benefit amount by the cost of living in each country. For example, the company offered USD 2,000 to employees in the U.S.A. but they thought they may need to offer more to employees in Switzerland and less to employees in India. The client needed a simple report that provided this cost of living conversion data for all of their operating countries.

    SWITZERLAND, Zurich 3 - HA-533187-edited

    Solution:

    AIRINC's Global Reward Index Calculator compares average cost of living data across countries. Our tool allowed the client to defensibly vary the benefit amount by country, thereby creating a better-aligned program. They determined that employees needed the following allowances to maintain the same purchasing power as their peers who received USD 2,000 in the U.S.A.:

    • Employees in Switzerland needed USD 2,828
    • Employees in India needed USD 1,280

    This client used the tool for calculations related to wellness: the Global Reward Index Calculator can also help you establish globally equitable allowances for remote work, fitness, small performance rewards and cash. Calculations are quick, easy, and transparent.

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    More from the compensation series:

    Compensation Case Study - Cost of Living Ranking

    Compensation Case Study - Remote Work Allowance

     

    Topics: Cost of Living Surveys, Global Mobility, Workforce globalization, Employee Compensation, Global Compensation, Total Reward, Distributed Workforce, Compensation, GRI, Global Reward, benefits

    Andrea Downing

    Written by Andrea Downing

    Andrea joined AIRINC in 2014 as a Client Solutions Executive with over fifteen years’ experience in global mobility with expatriate data consultancies. Andrea is the first point of contact for clients within the EMEA region that are managing their first international assignments; she also develops relationships with partner companies in EMEA. Andrea’s experience ranges from conducting pricing surveys to managing consulting projects, providing a full understanding of all the issues clients face with cross-border moves. Andrea has a BSc (Hons) Degree in Biological Sciences from Middlesex University.