Research shows that nearly three quarters of businesses with employees working abroad are risking not meeting their duty of care as they provide cash lump sums for buying health and wellbeing support.
Research from the international experts at Towergate Employee Benefits shows that nearly three quarters (74%) of businesses with employees working abroad are risking not meeting their duty of care as they provide cash lump sums for staff to buy their own health and wellbeing support, rather than sourcing and funding employee benefits for them.
The research asked businesses with overseas employees whether they provide their staff with a benefits package or with a cash lump sum. The rationale behind employers offering a cash lump sum is so that the employees can source their own employee benefits products, such as private healthcare and life insurance. But with the vast majority providing the cash alternative, Towergate Employee Benefits is warning employers that they may be opening themselves up to future problems.
Sarah Dennis, Head of International at Towergate Employee Benefits, commented: “Offering a cash lump sum to overseas employees is still quite common, and the problem is that employers can’t be sure the money is being spent in the right way. It is not unheard of for the globally mobile to use the money to help fund lifestyle choices rather than the insurances they need, and this is a choice that could have repercussions for the employer, as well as the employee themselves.”
Pitfalls
Sarah observed that there are a lot of things that need to be in place for an overseas assignment to work. There’s always an option to buy cheaper, or not at all, but when it comes to medical cover, it’s not a good idea to take shortcuts ...
Photo: Sarah Dennis.