Despite what you might think would happen in a recession, overseas employers are actually offering more benefit choices to their employees or are considering doing so, according to a recent Mercer survey.

The survey polled 1,700 companies in 47 countries outside of the United States. The HR consulting firm found that one in four employers (27%) now offers employees choice in the benefits they provide, with a third of those surveyed planning to add choice or considering doing so.

Employers cited “respond to diverse workforce needs and values” and manage costs as the main reasons for adding benefits choices. The types of benefits offered through flex programs can vary widely by region and country.  Insured benefits most likely to be offered are medical (71% for employees, 48% for dependents), life insurance (57%), dental (52%), accident (47%) and vision care (35%).

The range of allowances includes those for mobile phones/telecommunications (29%), cars (29%), gym memberships (28%), child care (24%), food (18%), public transportation (15%) and housing (13%). Other benefits commonly offered include retirement/employee savings plans including voluntary pension (46%), health screenings (28%) and holiday buy/sell options (24%).

“In the current economic environment, many employers can’t afford generous pay increases, so they are relying more on their benefit programs to keep employees happy,” explains Beth Umland, Mercer’s head of health and benefits research.

In parallel, Umland notes that nearly two-thirds (62%) of all respondents said that a very important priority for their health and benefits programs for the next few years would be “to increase employees’ understanding and appreciation of benefits.”

When the survey dissected the results by region, it determined that choice in benefits is most common in North America (represented by Canada) and Europe than in Asia-Pacific or Latin America.

However, within Europe there was great discrepancy, with employers in the Netherlands, Spain and the UK as the most likely to provide choice (53%, 44% and 42%, respectively) while employers in Italy and Russia are the least likely (13% and 16%, respectively). “Many factors affect the decision to implement a choice program, starting with the level of state benefits and local regulation and policies affecting taxation of benefits,” says Umland. 

Even though the most common reason given for not offering choice is the perceived cost, as 60% of respondents without choice rationalized, the majority of employers offering choice have found that they are either cost neutral (42%) or have saved money (30%).

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