Control over costs is overwhelmingly the reason global companies use multinational pooling, with 80% citing it as the prime reason the schemes are in place.
During its International Employee Benefits Seminar, held in Berlin in May, pooling network IGP surveyed attendees on factors that influence decisions regarding design and placement of their local employee benefits plans.
Other reasons mentioned for using a pooling network were: central control, information on claims and updates on benefits and trends throughout the world.
Multinational pooling helps companies to coordinate and manage their various benefit plans throughout the world.
However US and European headquarters differ as to why they would work with a multinational pooling network.
The majority of European multinationals cited potential savings resulting from using a multinational pool as an important factor in controlling the high cost of employee benefits.
More American companies responded that they use the information generated from pooling employee benefits plans to benchmark benefits.
Nele Segers, account representative at IGP Europe, said: "There are approximately 2,500 multinational pools worldwide; but in the UK, there are around 24,000 multinational companies, many with EMEA responsibilities, and 100,000 multinational companies worldwide.
"This insight from global benefits managers shows how risk management, oversight and governance on a global scale are coming to the forefront and illustrates the significant potential for increased pooling activity in the UK."
