According to the international trade commission, the U.S. exported $3.2 trillion worth of goods and services in 2024 with the top five markets being Canada, China, Mexico, the United Kingdom, and the Netherlands.
It’s safe to say that business is more global than ever before. Employers who are looking to capitalize on overseas opportunities must be aware of the complexity this introduces for their organization beyond operations. As consultants, we can’t help but point out that one of the primary areas executives need to consider when going international is their people – and the benefits that help attract and retain them.
How Benefits Are Affected by International Expansion
International trade, just like domestic business, is built on both a solid business plan and solid strategic relationships. Further, international relationships are built not by staying domestic, but by deploying team members to global markets from short-term business trips to long-term assignments.
Navigating international business is made even more complex when companies want to support those employees with benefits that will serve their needs and create a valued connection to their employer regardless of the time zone or region.
In the U.S., employee benefits have become one of the most important factors in attracting new talent and retaining top employees. Traditionally in the U.S., benefits fit neatly into a package: medical, dental (maybe vision), and a 401(k) or retirement plan. However, what’s considered standard in the U.S. can be completely irrelevant elsewhere.
On top of differences in the actual benefit offerings, learning to navigate international markets and support employees with benefit programs that meet local laws and regulations while staying budget conscious can be challenging.
Understanding Four Common Global Scenarios
Global mobility comes in many forms with a wide spectrum of company needs in terms of international benefit support. We typically encounter four scenarios:
- Short-Term International Travel: U.S.-based employees sent overseas for short-term assignments.
- Long-Term Assignments Abroad: U.S.-based employees sent abroad for extended periods.
- Global workforce: Full-time employees permanently located in another country (e.g., Mexico-based staff).
- Third country national: A worker hired in a country outside the U.S. but assigned to work in a country not his or her country of origin.
When a U.S.-based company deploys a team member abroad, it’s important to take into consideration a unique set of risks for the safety and security of the international business traveler. The U.S. Department of State’s Bureau of Consular Affairs has detailed information on safety and security while traveling abroad. Their website also includes a “Traveler’s Checklist” section. Regarding insurance, the State Department makes it very clear on their website:
“The U.S. government does not provide insurance for U.S. citizens overseas. We do not pay medical bills or unexpected costs. We highly recommend that you purchase travel insurance before you travel to cover emergency medical care, either as part of or separate from trip cancellation insurance. Check your health care policy to see if it will cover you overseas.”
Considerations for Short-Term International Travel
Providing health insurance coverage to your short-term traveling team may seem simple, but the coverage nuances can get tricky. Global health insurance policies for international business travelers vary widely and aren’t all created equal. Close attention to coverage exclusions, for example, pre-existing conditions as well as excluded countries, should be reviewed. Another consideration when evaluating the insurance product is whether it offers “sojourn” coverage for personal travel immediately before or after the business trip. Additionally, some policies offer coverage for more than just emergency medical or dental care and can include:
- 24-hour assistance with travel emergencies
- Physician consultation while abroad
- Accidental death & dismemberment coverage
- Prescription drug coverage
- Dependent/Spouse coverage
- Medical evacuation/repatriation
Because coverage can differ from one policy to the next, it’s important to confirm that the coverage you opt for meets the needs of your international traveler in terms of location, length of trip and coverage for any pre-existing conditions.
Considerations for Long-Term Assignments & Third-Country Nationals
Like short-term assignments, your expat team members (those on long-term assignments and third-country nationals), will need assurance that they have access to health care if needed. This coverage can be obtained via an expatriate medical plan or through locally placed products offered through a locally domiciled broker in partnership with your M3 team. Regardless of which approach is taken, employers should ensure coverages are placed in compliance with local regulations and competitive with the marketplace. Expats may also have additional needs, outside insurance placements, if they choose to travel with their spouse and dependents. These include cost-of-living allowances (COLA), work visas, housing, transportation and school options.
Considerations for a Global Workforce
When structuring a benefits program for employees in countries outside the U.S., the partnership of a local broker with in-depth knowledge of local laws, insurance policies, benefits compliance and access to benchmark data is critical to supporting the long-term success of the operation from a recruitment and retention perspective.
The approach to healthcare outside the United States is quite different. For example, many countries offer government-sponsored healthcare. In Mexico, the medical benefits are provided through the Mexican Institute of Social Security (IMSS) and employers with over 100 employees must provide on-site medical services.
However, it is becoming standard practice that nearly all multinational and local leading employers provide supplementary medical benefits (not so common for small employers) through a group major medical plan. These plans can provide access to private medical systems versus the public system available through the IMSS.
Every country is different and understanding the nuances requires a partner with local touch and global reach. By partnering with M3, U.S. based employers have immediate access to a network of like-minded independent brokers based in markets around the world.
As consultants, our role is to be authorities on this ever-changing landscape. That challenge grows even more complex as more of our clients expand globally. So, how do we support clients with employees located outside the United States? How do you stay abreast of new legislation or regulations relating to your local operations?
The Bottom Line: Global Mobility Requires a Global Benefits Mindset
As companies expand their footprint across borders, benefits strategies must evolve just as thoughtfully as business strategies. Employees are the backbone of any successful global operation – and supporting them with the right benefits is not just a compliance necessity, it’s a strategic advantage.
Navigating international benefits is complex, but you don’t have to do it alone. With M3’s global consulting capabilities we help clients anticipate challenges, align with local standards, and protect their people — no matter where business takes them.
So, if your organization is thinking globally, now’s the time to ask:
Are your benefits truly ready for the world?
Reach out to to your M3 Client Executive to learn more about how your organization can expand and navigate international benefits so that you’re truly ready for the world.
