Historically, in-house services may have worked very well for large multi-national employers with extensive benefits support systems. But today, the complexity of providing such benefits raises challenges even for large companies. At the other end of the spectrum, smaller employers are simply not able to offer hybrid multi-local coverage simply because they lack the size and scale to secure such coverage.

Whilst some may assert that in-house approaches can be beneficial for organisations wanting to maintain maximum flexibility, consistency and cost effectiveness, other considerations must be weighed. For example, an employee may object to their employer making judgments about medical treatments - especially if the decision-maker is not a recognised medical expert. In-house plans also mean that the benefits manager himself must handle the complexities of settling claims in various countries - each with their own payment procedures and currency requirements. Other times, especially with hybrid multi-local plans, an employer often must intervene during a medical emergency in another country when the host country coverage is insufficient.

In medical emergencies, in-house approaches also require resolution for a myriad of decisions. To start, benefits managers must decide what exactly they will cover. And these decisions are always subject to scrutiny, especially if expatriates in one geographic setting are believed to be the beneficiaries of superior coverage in contrast to employees on assignment elsewhere.

The issues can be wide-ranging and difficult to resolve. For example, what about those situations where a unit leader operating abroad finds himself spending weeks at a time operating in a variety of different countries? Should a company negotiate individualised health care coverage for the employee in each country? Or, should benefits managers arrange for health care coverage in a single country - hoping that service extends to cover medical necessities in surrounding nations?

Cost and quality issues raise questions as well. For example, should an expatriate worker overseas return home for cancer treatments if quality medical services are available where the employee happens to be working? And if a medical condition necessitates a trip home, should the company assume the cost of travel?

Some employers may simply offer employees a lump sum cash payment that allows them to arrange for health care coverage on their own. But in these instances, employees run the risk of mismanaging their own benefits coverage. For example, for European workers operating in the U.S., the costs of health care may come as a surprise.

Benefits managers using in-house approaches also may find that they there are risk management issues and budgeting issues that arise. Countries worldwide all have different policies and practices related to health care, and it may be difficult for an employer to accurately gauge the true cost of expatriate healthcare in various locations. Other times, when legal or service delivery disputes arise in particular countries, many benefits managers can find themselves ill-prepared to manage and resolve such disputes. This makes reliable budgeting extremely difficult for managers handling expatriate benefits support.

BRINGING IN EXPATRIATE BENEFITS EXPERTS

With so many challenges facing benefits managers attempting to handle expatriate benefits internally, it is perhaps not surprising that an industry has developed to provide specific solutions to the many and varied needs of expatriate workers.

For many employers, the decision to out-source expatriate benefits is made much easier when one considers the unique set of services available from these specialised providers. They typically offer a broad range of benefits relevant to any number of populations operating inside multi-national companies. These providers also offer a consistent global delivery mechanism, something that is difficult to replicate, particularly for small companies.

Out-sourced benefits experts also can work in collaboration with sponsoring employers on issues such as cost management. With an extensive understanding of various international health care systems, these experts may be able to identify savings opportunities - or at least provide sound guidance so that employers may avoid paying unnecessary health care charges.

Additionally, specialised expatriate benefits providers often have robust emergency evacuation and repatriation services in place. They may also offer a vast provider referral network, something that is important for expatriates operating in exotic or remote locations.

Out-sourced benefits solutions also offer the advantage of live, multi-lingual, 24/7 customer service and support. Certain out-sourced providers also specialise in risk management, where they design benefit plans to provide maximum employee benefits, yet still protect employers from excessive legal exposure.

EMPLOYEES: LIABILITY OR ASSET?

In making a final decision whether to manage expatriate benefits in-house or with the assistance of outside experts, company leadership should carefully assess its view of its own employee population.

Whilst in some cases there may be no formal requirement for companies to provide health care for expatriate employees, in actual fact, many nations now require that companies provide such coverage. Therefore, it seems sensible that managers would look at these employees as business assets, seeking an approach to expatriate benefits that contributes to the most productive use of these human assets.

So while many companies may be sincerely interested in providing robust expatriate benefits, sometimes even these efforts fall short when a support system is not in place to guarantee service delivery. By investing in services and support systems specifically designed for expatriates, benefits managers have the unique opportunity to make significant contributions to the productivity and general morale of their expatriate workforce.