As companies expand their workforce globally, offshore teams have become essential in maintaining operations, optimising costs, and driving innovation. However, while companies often acknowledge the necessity of offshore teams, a significant disparity remains in how these employees are compensated beyond base salaries. The gap in benefits and incentives between offshore and onshore employees is not just a financial issue but one that affects inclusion, engagement, and long-term retention.
While we recognise that salary discrepancies are often influenced by differences in economic conditions, benefits and access to incentives should be uniform across all locations. A cohesive workforce is built on fairness, and ensuring that offshore teams receive equal benefits fosters a more unified, motivated, and productive organization.
The Reality of the Benefits Disparity
A 2023 study by ADP Research Institute found that 72% of employees consider benefits a critical factor in job satisfaction. However, offshore employees in the same companies often receive significantly fewer benefits than their onshore counterparts.
Key areas of disparity include:
- Healthcare Coverage: In the U.S., 99% of full-time employees receive employer-sponsored health insurance (Bureau of Labor Statistics, 2023), whereas offshore employees in regions such as Southeast Asia and Latin America may only receive partial health contributions or none at all. In Australia, 88% of full-time employees receive employer-supported private health insurance or Medicare benefits (Australian Bureau of Statistics, 2023), compared to significantly fewer offshore employees who may have to rely on their own health coverage.
- Paid Leave: Onshore employees in developed countries receive an average of 28 to 35 days of paid leave, while offshore employees in developing nations often receive only 10 to 15 days per year (OECD, 2023). In Australia, the Fair Work Act (2009) mandates 20 days of paid annual leave, whereas offshore employees working for Australian companies often receive significantly fewer paid leave days, depending on their country of employment.
- Bonuses & Incentives: Performance-based bonuses are awarded to 78% of onshore employees, whereas only 43% of offshore workers receive similar incentives (Glassdoor, 2023).
- Retirement Contributions: Over 85% of employees in North America and Europe have access to employer-sponsored retirement plans, compared to fewer than 40% in some offshore regions (Mercer Global Benefits Report, 2023). In Australia, the Superannuation Guarantee (SG) Scheme ensures that all eligible employees receive a 10.5% employer-paid retirement contribution, yet offshore workers under Australian companies may not receive equivalent contributions.
- Professional Development: Offshore teams are 32% less likely to receive employer-sponsored training and career advancement opportunities than onshore employees (LinkedIn Workplace Learning Report, 2023).
Why Equal Benefits Matter
Beyond fair compensation, offering equal benefits ensures companies retain top talent, drive engagement, and reinforce company culture across all locations.
1. Engagement and Productivity Depend on Fairness
A Gallup (2023) report revealed that employees who feel equally valued are 50% more engaged, directly impacting productivity, collaboration, and long-term retention.
When offshore employees perceive an imbalance in benefits, they are 30% less likely to remain with the company long-term (Deloitte, 2023). Companies that ensure offshore employees receive equal benefits see a 35% boost in team engagement.
2. Lower Turnover Means Greater Stability
A 2023 Mercer Benefits Study found that companies with uniform benefits structures see 40% lower attrition rates in offshore teams. Consistency in benefits strengthens employee loyalty, reducing costly turnover and recruitment cycles.
A lack of benefits leads to higher resignation rates among offshore employees, requiring companies to constantly retrain new hires—a process that increases operational inefficiencies and weakens long-term team cohesion.
3. Strengthening Employer Brand and Attracting Global Talent
A 2022 Glassdoor survey found that 76% of job seekers consider a company’s commitment to fairness when applying for a job. Companies that establish equal benefits policies create a competitive edge, ensuring they attract top talent from all global markets.
Fair compensation and benefits also influence employee advocacy—when employees feel valued, they are 70% more likely to recommend their company to peers (Harvard Business Review, 2023).
How Companies Can Implement Equal Benefits
Ensuring that offshore employees receive equal benefits requires a structured approach that integrates fairness into every aspect of global workforce management. Here’s how companies can make meaningful progress:
1. Establish Universal Benefits Across Locations
Instead of tailoring benefits regionally, companies should adopt a core global benefits package that applies to all employees. This should include:
- Comprehensive healthcare coverage that extends to employees in all locations, ensuring access to quality medical services.
- Retirement contribution programs that align with regional pension or superannuation schemes.
- Performance-based bonus structures that fairly reward contributions, regardless of where employees are based.
- Consistent paid leave policies that align with global best practices rather than local minimum standards.
- Equal access to professional development and training to encourage career growth for all employees.
2. Increase Transparency in Benefits Allocation
A 2023 PwC report revealed that 67% of employees who understand how benefits are allocated are more likely to remain with a company. Organizations should clearly communicate their benefit structures, ensuring offshore teams know what they are entitled to.
- Conduct regular benefits education sessions to ensure employees understand their entitlements.
- Create an accessible benefits portal where employees can review their coverage, bonuses, and leave policies.
- Implement open feedback channels to gather insights from offshore employees on areas of improvement.
3. Equalize Performance-Based Incentives
A Harvard Business Review (2023) study found that offshore employees receiving the same performance incentives as onshore workers report 45% higher engagement. To ensure fairness, companies should:
- Standardize bonus structures based on measurable performance outcomes rather than location.
- Offer equity-based incentives such as stock options or profit-sharing programs to all employees.
- Ensure salary reviews and performance appraisals are conducted equitably across regions.
4. Align Paid Leave and Wellness Benefits Globally
Companies should align paid time off (PTO) policies to global best practices rather than local minimum requirements. This includes:
- Equal paid vacation days across all regions, recognizing the importance of work-life balance for all employees.
- Consistent parental leave policies to support employees through major life transitions.
- Mental health support programs available to all employees, including offshore teams, to promote well-being and productivity.
5. Foster an Inclusive Workplace Culture
Beyond adjusting policies, companies must actively promote an inclusive environment where offshore employees feel as valued as their onshore counterparts. Strategies include:
- Remote-friendly team-building activities to foster stronger cross-border connections.
- Leadership training in inclusive management to ensure managers effectively support global teams.
- Equal access to company-wide initiatives and decision-making to reinforce the sense of belonging.
Conclusion: A More Inclusive Future of Work
As businesses continue to evolve in a highly globalized environment, the demand for fair treatment of all employees—regardless of location—is more critical than ever. Equalizing benefits between onshore and offshore teams is not just a moral imperative but a strategic advantage that enhances engagement, strengthens company culture, and boosts overall performance.
Companies that embrace fairness in benefits allocation will see higher retention rates, improved job satisfaction, and a stronger employer reputation worldwide. By implementing universal benefits, transparent policies, and inclusive workplace practices, businesses can cultivate a work environment where every employee feels truly valued.
At Tbelle, we remain committed to bridging the benefits gap and advocating for a workforce where fairness is the foundation of success. However, we recognize that this is still a work in progress—even for us. We are continuously learning, adjusting, and finding better ways to implement fairness across global teams. But we believe that knowing is the first step toward action, and by prioritizing equal benefits and incentives, organizations can build a more unified, motivated, and high-performing global team.
The future of work is a constantly evolving landscape where fairness and inclusivity remain aspirations rather than guarantees—an ideal we must continue striving toward, even if the path remains uncertain.
