3 Pitfalls to Avoid When Striving for Benefit Equity
Helping our clients achieve benefit equity is an increasingly important part of what we do here at Allegiant Global Partners. Non-profits and International Non-governmental Organizations (INGOs) know that offering fair compensation and equitable benefits to employees, regardless of which employee type they fall into, is integral to treating employees fairly. However, achieving benefit equity is almost as difficult as addressing the variety of issues our clients are tackling across the globe.
Over the years, we have been able to spot and address a number of common pitfalls that companies must navigate to achieve equity in their benefits. With that in mind, we’re spelling some of those pitfalls out here to help you on your journey to a more equitable future for your employees.
Budget
No surprise here! Budget is one of the first obstacles companies face when working toward benefit equity. In some ways, this is counterintuitive. Local National employees cost significantly less to insure than U.S.-based employees, Third Country Nationals, or Expats — often by thousands of dollars. Our data shows the average per-person cost of health insurance can be as low as just $800 per year in Africa. Meanwhile, in the U.S. that cost is closer to $21,000. However, the initial change can be hard to swallow for many companies. The good news is there’s usually a solution to this problem.
At Allegiant, we often work with clients to find efficiencies in other areas of their coverage to help offset the initial increase in costs due to providing equitable benefits across the employee spectrum.
It’s also important to explore how failing to provide employees with appropriate coverage can have unintended consequences. For instance, sometimes organizations end up paying for claims (or even emergency evacuations) that are not covered — spending far more in the long run than if they had just found the extra money to provide appropriate coverage.
We’re also seeing companies that operate in Africa start to use benefits as a competitive advantage when vying for talent in the marketplace. We expect this to continue, so organizations should not shy away from confronting the costs associated with equity. Being realistic — and prepared — can only benefit your organization in the long run.
Local hurdles
INGOs and other international organizations know that every country they operate in comes with its own quirks and challenges. Being successful often requires that you learn to navigate those idiosyncrasies, and that’s as true when it comes to providing benefit equity as it is for the larger mission.
Something as simple — and as intractable — as access to providers can be an issue for organizations looking to provide equitable healthcare. We have had clients looking for dental coverage in a country where dentists were all but non-existent. This is not a problem insurance coverage can solve.
Other times, technology infrastructure is the issue. For instance, employees of our clients in Africa and beyond expect all benefits to be cashless, but expectations do not always meet reality. As our white paper, “How Technology is Transforming International NGO Insurance Equity,” details, there are many companies working to solve the technological issues that are barriers to benefit equity, but in the meantime, organizations need to understand — and be ready to troubleshoot — these problems.
Get to know what the provider landscape looks like in the countries where you operate, understand the expectations of the end users, and explore any other challenges that may prevent an organization from achieving full equity. Equally as important, be ready to communicate your solutions to these challenges — which brings us to our next point.
What is a cashless experience?
The ability to seek care from providers without having to pay upfront. In essence, this is a “care on credit” setup, where covered members do not have to pay for care out of their own pocket before submitting for reimbursement from the insurance carrier.
Communication
No solution is perfect, and inevitably, any change in benefits will raise questions and concerns. Communication is key to making as many employees as happy as possible and helping them understand why the new changes are for the best.
We had a client in Asia who switched from a plan that provided an entirely cashless experience but did not provide coverage for many catastrophic healthcare needs. Employees were predictably dismayed to lose their cashless solution, but by communicating the experiences of other employees whose lives were saved thanks to the new solution, the client was able to help people understand the need for change.
At Allegiant, we are opposed to one-and-done solutions. We run education sessions, bring in leaders to be champions, and use case studies to illustrate the benefits of a plan change. Success is related to the support structure, so it’s imperative to have organizational leaders on board and a communication plan in place.
Failure informs future success
Rarely is it a straight line from where an organization is today to fully equitable benefits. Some initiatives may stumble — or even fail — but that does not mean you give up. Like anything worth doing, achieving benefit equity can be hard. That’s why it’s important to have experienced partners and providers by your side to help navigate around hurdles and pick you up when you fall. As we like to say, “Every hero needs a sidekick.”
Explore Allegiant’s four-pronged approach to Local National solutions below.