Global companies are less inclined to centralise their benefits than smaller businesses, new research has revealed.
Figures from ComPsych showed 72 per cent of firms based in one to five countries had highly centralised benefit strategies, Employeebenefits.co.uk reported.
However, this figure dropped dramatically to 19 per cent for firms based in more than six countries, highlighting how global companies may not be placing the same emphasis on benefits centralising.
The global trends report also indicated that consistency and fairness was the top reason for centralising benefits.
Some 83 per cent of firms said cost containment was their motive behind centralising benefits, while 47 per cent said it was to do with compliance.
The least influential reason for centralising benefits was risk management at 19 per cent, yet 30 per cent of respondents did it for corporate governance.
Despite the motives for centralising benefits, firms admitted there were a number of obstacles that affect the move.
Provider issues were shown to be the biggest challenge to centralising benefits, while local policies or regulations were chosen by 43 per cent of respondents as the biggest barrier to the strategy.
As many as 40 per cent of firms said cost-effective implementation was an obstacle, while 37 per cent admitted a strong culture of regional autonomy affected their decision to centralise benefits.
Businesses should aim to put strong employee benefit strategies in place in order to bolster staff morale and improve productivity.
Recent research from ComPsych showed more than half of employees found workplace stress a barrier to on-the-job concentration.
Chairman of ComPsych Dr Richard A Chaifetz said: “Unchecked stress can result in a number of productivity-sapping outcomes, from diminished work quality to absenteeism to co-worker clashes.”
Some 21 per cent of employees admitted workplace stress caused them to miss deadlines or make errors in their tasks.