Bringing Our Global Benefits Strategy to Life

Insights From  Jonathan Clarey, Global Benefits Leader & Fabio Mazetti, Global Benefits Sr Manager, Health & Wellbeing at Philip Morris International 

How do you give 80,000 people in more than 90 countries a fair, consistent benefits experience, without simply throwing money at the problem?

At the Summit, Jonathan Clarey and Fabio Mazzetti from Philip Morris International's Global Benefits Centre of Excellence (COE) explained how a team of just four people is doing exactly that. Jonathan focuses on the finance and risk side of global benefits, while Fabio leads on health and wellbeing strategy.

From silos to a single view

Before the COE, benefits at PMI were managed market by market, with little central oversight. That changed as the company began its transformation towards a smoke-free future.

"With the investments and the shifts that were required, there was a recognition that we need to get on top of the benefits we've got, and get access to more data," Jonathan said.

Fabio added a second driver: employee experience. With a presence in so many countries, PMI wanted employees everywhere to have a similar experience.

The first step was a full audit. With no central data on what was being offered, the team mapped benefits across every market and found more than 70 different types, with no consistency between them.

Today the COE is four people, two in London and two in Singapore. Its role is to set the governance, principles and expectations that local markets follow when delivering benefits. Jonathan jokes that Fabio is the "good cop" making sure everything works for people, while he makes sure it's sustainable.

Four pillars of employee experience

PMI's benefits strategy exists to support the success of the business, and it's built on four pillars:

1. Inclusivity: making sure everyone has access to core benefits
2. Health and wellbeing: equipping people to look after themselves
3. Flexibility and choice: an aspiration the business is working towards
4. Communication: because "it doesn't matter how good your benefits are if people don't understand where to access the right benefit, from the right place, at the right time"

Each pillar could be tackled on its own, but Jonathan warned that this approach means "throwing money at the problem". Instead, the COE looks at the systems and partners needed to deliver all four efficiently.

One principle is non-negotiable: efficiency never comes at employees' expense. The aim is never to increase employees' share of costs or reduce their benefits.

Setting a global minimum standard

PMI already had some global standards in place, including its employee assistance programme (EAP), outplacement support, volunteering and parental leave. Its company values gave the COE a strong foundation to build on.

The team built its framework around three areas: insured benefits, "moments that matter" such as time off when people need it, and prevention.

For insured benefits, the COE defined a minimum that every employee should have, whatever the local market norm. For example, in parts of Africa where life insurance isn't common, PMI now guarantees cover of at least two times salary. After the pandemic, Jonathan said, too many families were left to pick up the pieces when no payment was made.

The detail matters too. Life insurance should apply from day one, and medical plans shouldn't exclude pre-existing conditions.

Reviewing policy exclusions was eye-opening. In some countries, female employees couldn't add dependants to their health insurance. PMI removed that restriction to ensure equal access regardless of gender, and is extending cover to same-sex partners where the law allows.

The minimum standards are exactly that: a minimum. Local markets can go further, as long as they make a business case and go through the usual approval process.

A global broker, better data and a shift to prevention

To turn the framework into reality, PMI ran an extensive review of its brokerage arrangements. It wasn't treating brokerage as a commodity. The goal was to find a partner that could provide data and insight, not just cut costs.

Around 85 of PMI's 92 countries now work with one global broker. No single broker is the best in every market, Jonathan admitted, so the central relationship has to be managed closely. Fabio described the broker as the COE's "arms in the markets", helping local teams understand the global standards and how to meet them.

Bringing claims data together revealed something important. PMI's benefits packages were generally rich, but they weren't solving employees' real pain points. Most claims costs came from non-communicable diseases, many of which can be prevented or treated early.

That insight led to two key changes:

• Health screenings for all employees, supported by a culture that encourages people to get checked and to talk openly with their line managers

• Psychological support beyond the traditional EAP, including talking therapies and access to psychiatric services. As Fabio put it, an EAP "is not designed for the complexities of the mental health conditions that we are seeing today"

Taking everyone on the journey

Global programmes can easily feel imposed from above. Jonathan, who previously worked in consultancy, said he used to tell clients that communication was everything. Working inside a global business, he realised just how true that is.

Finance, procurement, talent, regional benefits leads and local markets all have a stake. "Probably 80% of the time is spent in conversation and communicating, understanding their needs," he said.

The COE has positioned itself as a partner rather than a policeman. The global framework is mandatory, but where markets struggle, the team sits down with them to work out how to adapt it locally. Now, Fabio said, markets come to them for advice.

What's next: the "pizza base" and AI

Markets are due to implement the minimum standards by the end of this year, and PMI is well advanced. But as Jonathan put it, "you're never done with this thing".

The next step is benefits technology. Jonathan describes the minimum standards as a pizza base. The aim is to add flexibility and choice, perhaps through a benefits wallet, so employees can "choose their own toppings". PMI is currently piloting this in a handful of countries.

AI and predictive analytics will play a big part too, helping steer people to the right benefit at the right time and using claims data to design more relevant, preventive programmes for each market.

The lesson for any organisation, large or small, is to treat benefits like an inventory. Audit it regularly, see what's being used, and be ready to move money towards what really matters to your people.

To register your interest for the 2027 Engage Employee Summit click here.