One in five companies with overseas employees believe they do not offer enough health and wellbeing support, new research reveals, and that this shortfall is damaging recruitment and retention. The findings come amid ongoing global talent shortages, with many employers competing for skilled workers in sectors facing acute demand.
A global study referenced by Towergate Employee Benefits reports that 74% of employers are struggling to find the skilled talent they need. The most affected sectors are Healthcare and Life Sciences, Energy and Utilities and IT. Shortages are especially pronounced in Germany, Israel, Portugal, Ireland, Romania, Singapore, Brazil and Hong Kong, where more than 80% of employers say they struggle to hire. The UK reports shortages at 76% and the US at 71%.
“With companies struggling to recruit and retain the right talent abroad, employee benefits – and health and wellbeing support in particular – have become an increasingly vital element,” said Sarah Dennis, head of international at Towergate Employee Benefits.
She added that for globally mobile employees, benefits and support can be more important than salary, particularly in competitive industries like Tech and IT.
Health and wellbeing support is growing in importance as a differentiator in recruitment. Towergate’s research shows that 41% of companies with overseas employees believe the way they support health and wellbeing is a key reason people choose to work for them. A further 37% say it is a key reason people choose to stay, and 35% say it helps attract and retain key demographic groups.
Health and Wellbeing as a Competitive Advantage
The findings suggest that health and wellbeing benefits are becoming essential for employers aiming to strengthen their position in challenging markets, particularly during periods of increased hiring activity. Providing a diverse package that addresses a range of needs can create a competitive advantage, especially when supported by clear communication.
Dennis notes that employers must consider the full spectrum of wellbeing for overseas staff. She highlights the importance of mental, physical, social and financial health support to keep employees well and to demonstrate an organisation’s commitment to its people, as well as the central role of preventative healthcare.
Understanding local conditions is another important factor. Employers operating internationally need to be aware of recruitment challenges in different countries and industries so they can adapt their benefits accordingly. The report notes that Germany has one of the highest skilled labour shortages in Europe, with healthcare, engineering, IT and construction facing severe gaps. Immigration policies have been eased in response, highlighting the scale of the challenge for employers.
Global Knowledge Needed to Shape Effective Support
Dennis stressed the importance of informed decision-making when designing benefits for globally mobile talent.
“Knowledge is power when it comes to employee benefits,” she said. “Knowing what support is most appealing to which potential employees, what is most likely to keep existing talent healthy and satisfied, and where it may be necessary to up the ante, is all vital information in ensuring health and wellbeing supports the company in its global recruitment and retention success.”
As global competition for skilled workers intensifies, observers say the role of wellbeing support is becoming more significant. The research indicates that employers who invest in comprehensive and targeted health and wellbeing benefits are better placed to recruit, retain and support overseas employees in an increasingly demanding labour market.