But while many offer greater rewards to employees in hot spots, few employers have implemented a formal evacuation policy in case of security or health-related issues
Despite having workers around the globe in areas considered to be hot spots for danger, many multinational employers have not adopted a formal policy to evacuate employees in case of security threats or health-related issues, according to a survey.
But many employers are upping the ante for expatriates by offering increased compensation to work in dangerous parts of the globe.
“The threats of war, terrorism, political and social unrest — and even disease outbreaks — have forced multinationals to take a series of measures to protect their employees assigned to high-risk areas,” said Robert Wesselkamper, practice director of international consulting at Watson Wyatt. “While companies recognize the potential dangers their workers face, they realize they can only do so much to minimize the risks to their employees. Therefore, more employers are offering increased rewards to work in high-risk locations.”
The study, conducted by Watson Wyatt, found that many companies are providing additional financial incentives and insurance coverage to compensate staff in high-risk areas. Slightly more than half of the respondents either provide or plan to provide a financial incentive for employees in high-risk areas while about 40 per cent either provide or plan to provide employees with supplemental insurance to reimburse them for losses not covered by private insurance.
According to the survey, 70 per cent of respondents have employees in locations they consider to be dangerous, with Asia and the Middle East having the highest degrees of risk exposure. But only 40 per cent of those employers have adopted a formal evacuation policy.
“Despite the rising costs and risks involved, many multinationals seem committed to maintaining a presence in high-risk areas,” said Wesselkamper. “More than 80 per cent of the respondents have no plans to reduce the number of employees working in affected areas in the long term. However, some businesses may rely more heavily on business trips as opposed to permanent residence in affected regions, at least in the short term.”
The survey, Managing Risks Faced by Expatriate Employees, was a Web-based poll of 37 multinational organizations representing more than 11 million employees around the world.
But many employers are upping the ante for expatriates by offering increased compensation to work in dangerous parts of the globe.
“The threats of war, terrorism, political and social unrest — and even disease outbreaks — have forced multinationals to take a series of measures to protect their employees assigned to high-risk areas,” said Robert Wesselkamper, practice director of international consulting at Watson Wyatt. “While companies recognize the potential dangers their workers face, they realize they can only do so much to minimize the risks to their employees. Therefore, more employers are offering increased rewards to work in high-risk locations.”
The study, conducted by Watson Wyatt, found that many companies are providing additional financial incentives and insurance coverage to compensate staff in high-risk areas. Slightly more than half of the respondents either provide or plan to provide a financial incentive for employees in high-risk areas while about 40 per cent either provide or plan to provide employees with supplemental insurance to reimburse them for losses not covered by private insurance.
According to the survey, 70 per cent of respondents have employees in locations they consider to be dangerous, with Asia and the Middle East having the highest degrees of risk exposure. But only 40 per cent of those employers have adopted a formal evacuation policy.
“Despite the rising costs and risks involved, many multinationals seem committed to maintaining a presence in high-risk areas,” said Wesselkamper. “More than 80 per cent of the respondents have no plans to reduce the number of employees working in affected areas in the long term. However, some businesses may rely more heavily on business trips as opposed to permanent residence in affected regions, at least in the short term.”
The survey, Managing Risks Faced by Expatriate Employees, was a Web-based poll of 37 multinational organizations representing more than 11 million employees around the world.
