2010 Global Employee Benefits Survey Results Presentation Executive Summary


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2010 Global Employee Benefits Survey Results Presentation Executive Summary

  1. 1. 2010 Global Employee Benefits Survey Results Presentation June 10, 2010 June 10, 2010
  2. 2. 2010 Participation
  3. 3. Executive Summary • Survey represents over 10,000 globally mobile expatriate and TCN employees and over 150,000 employees worldwide. • Despite severe economic downturn in 2008 and 2009, limited evidence that plans moved to scale back benefits or shift additional costs to participants Less than 20% of the participants reduced benefits for ’10 The median employer subsidy for health care declined from 80.4% to 79.1% • The median medical cost increase was 5.3% but a wide range of responses indicate that some plans experience greater cost pressures than others. • There is a demonstrated move to reach out and communicate more effectively with international assignees.
  4. 4. Executive Summary: (Macro Trends and Their Impact on Global Programs) • Retiring Boomers – Delayed retirement by first wave following downturn in DC retirement assets – Increasing trend of retirements as market works through long- term effect of escalated unemployment (U.S. issue) • Strained Social Welfare Systems – Economic pressures felt beyond Greece – UK scale back of National Health system – German response of increased taxes and reduce benefits • Shift in Talent Attraction – Move to developing/emerging economies for talent brings new set of issues as immature Social Welfare Systems places different burden/requirement on organization
  5. 5. Executive Summary: US Expatriate employees • Pattern of differentiated benefits between Services and Drilling segments of the Energy sector • Median health benefits (Outside US) – Individual deductible - $200 – Individual out-of-pocket maximums - $3,000 – Coinsurance level (including Rx) – 90% • Health subsidy level declined slightly to 79% • Full suite of ancillary benefits offered – 2x life coverage most prevalent • DC retirement benefit match declined slightly to 5%
  6. 6. Executive Summary: Non-US Expatriate or Third Country National employees • Typically included on US health and dental programs. This will be an evolving issue moving forward as more aspects of Health Care Reform are implemented. • Health care benefits typically offer first dollar coverage while including other limits to benefits. • Smaller groups of TCN’s may be included on US welfare plans. Significant variations in underwriting tolerance for foreign risk. • Offshore savings plans less frequently offered to TCN’s. This may be an emerging attraction/retention issue.
  7. 7. Executive Summary: Local Nationals • HQ oversight and direction on vendor selection, plan funding and plan performance for Local National populations in a little over half of the organizations surveyed. • Participants very satisfied with Multinational pooling results. • Supplemental health care was the most commonly offered benefit.
  8. 8. Executive Summary: Other Findings • Limited evidence of organizations reducing frequency or duration of international assignments. • Some evidence of cost shifting to employees as health care subsidy has declined. Overall benefits remain robust. • Greater effort being put into global communications.
  9. 9. Contact Information Full survey results available to survey participants only. 2011 interest list being formed now. Cliff Caldwell Global Solutions Practice Leader Employee Benefit Solutions (832) 476-8365 ccaldwell@ebenefitsolutions.com Brent Gilot Survey Consultant Employee Benefit Solutions (832) 476-0493 bgilot@ebenefitsolutions.com Casey Loyd Business Development Lead Employee Benefit Solutions (832) 476-0489 cloyd@ebenefitsolutions.com