The market for employee benefits is growing quickly in Latin America. Health coverage, retirement savings plans and life insurance are some of the voluntary programs that have become commonplace in the market, especially in medium and large companies.
Several factors are driving the spread of benefits offered to employees, though Latin America has already come a long way. While today there is a global trend for companies to take on some of the responsibility of the state in offering medical and pension coverage, in several countries in the region this process began in the early 1990s, as financial woes afflicted health and pension systems and the private sector took on new prominence.
Today, with historically low unemployment rates in the region, growing rates of formal employment and a rising middle class, compensation programs for employees have become a key tool in finding and retaining talent as employees demand more and better private benefits in order to cover needs not satisfied by public systems. Many benefits offered, however, remain skewed towards management, while local companies still lag behind multinationals in their willingness to offer diverse benefit packets.
This report will delve into these issues and assess the current and potential size of the employee benefit market; look at the countries most successful in adopting benefit programs; and identify the challenges facing the growth of benefit programs in Latin America.