When you enter the benefits planning stage of your company's global growth journey, you'll have several factors to consider, such as labor laws and market standards. If you plan strategically, you can...
Read MoreWhen you enter the benefits planning stage of your company's global growth journey, you'll have several factors to consider, such as labor laws and market standards. If you plan strategically, you can use your benefits program to achieve success in Tanzania.
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When you enter the benefits planning stage of your company’s global growth journey, you’ll have several factors to consider, such as labor laws and market standards. If you plan strategically, you can use your benefits program to achieve success in Tanzania.
Your company’s benefits packages can bolster growth in key ways. During recruitment, competitive benefits can persuade job seekers to apply for your vacancies.
Internally, employee provisions can improve team morale and increase retention rates. Higher retention leads to a more experienced workforce and fewer onboarding costs over time. Possible benefits include:
While some benefits are optional, others are compulsory. The country’s labor laws require employers to provide a series of provisions, including:
Collective agreements exist within some industries that require additional minimum requirements.
Benefits requirements and employee expectations vary around the world, but you can follow these fundamental steps to create a competitive plan in any country.
Your company will need to dedicate resources to benefits. Assess your earnings and expenses to determine how much you’re willing and able to spend.
To compete with other companies, you’ll need to provide benefits that are standard in the labor market. Research local employers to learn about their packages to identify commonalities that job seekers may expect.
Based on your research, choose provisions for your team. First, allocate funding to the required benefits as needed, then use your remaining budget for optional provisions.
Factors such as industry, location, and size can influence how much a company puts toward its program. With so much variation, a national average cost isn’t a useful parameter.
Creating a sustainable budget is the best way to guide your spending. You can dedicate a specific percentage of your revenue to benefits. As your company grows, your budget will automatically scale with it.
Benefits calculations will vary depending on the provision. Calculations for benefits such as bonuses and allowances are simple. You can set an amount and distribute it evenly among your workforce.
Other calculations, such as social security contributions, are more complex. Employers are responsible for making contributions to the social security fund for every employee at 10 percent of the employees’ salaries, and employees contribute another 10 percent from their salaries.
Generally, benefits in cash and in kind are subject to income tax. Employers should tax benefits in kind according to market value. The country’s laws outline additional valuation regulations regarding:
For example, the value of a company car is determined by the engine size and age of the vehicle. It’s essential to understand these regulations to ensure compliance with income tax laws.
Tanzania provides low-cost and free health care via the NHIF, a government health fund; however, companies may provide private health insurance as a fringe benefit.
Globalization Partners’ global employment platform helps you build and scale an international team quickly and easily, ensuring all benefits offered to candidates are compliant and in line with local regulations. Learn more about our platform and request a proposal today.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
