Multinational employers may operate in diverse economies around the world, but they face certain common global human resource challenges.

Mercer’s 2008 Introduction to Benefit Plans around the World: a Guide for Multinational Employers helps global companies assess, compare and provide retirement as well as medical and other group benefits to their employees. The 2008 edition of this report identifies the top five retirement challenges and health and welfare challenges faced by employers worldwide.
 
1. Concept of retirement is changing rapidly
“The concept of retirement is changing at an unprecedented pace, driven by a number of related trends,” said Giles Archibald of Mercer. “Falling birth rates and rising life expectancy mean people will need to keep working and retire later, while the shift to defined contribution (DC) plans can make it difficult to save adequately for retirement, particularly in challenging financial times.”

Where previous cohorts of retirees in high-income countries viewed retirement as a period of leisure, current generations are increasingly expecting some employment in old age.
 
2. Defined contribution plans are increasingly popular
Many multinationals have explicitly stated a preference for establishing only defined contribution (DC) plans in the future. While several countries still have predominantly employer-sponsored defined benefit (DB) plans (South Korea, Philippines, Japan, Canada, Mexico, Belgium, Israel, Netherlands), it is rare for an employer to set up a new one anywhere in the world. Reductions in Social Security benefits and talent wars are raising employee expectations for improved, portable employer-provided benefits, but employers are not rushing to meet this need.
 
3. Employees need more support from employers
With participation optional and contribution level left up to the employee, many employers are finding that individuals contribute less, start contributing late, invest conservatively and retire too soon. Employers need to ensure employees understand their retirement plans through more effective communication.

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