Hi Everyone - it would be helpful to hear from other multi-national companies on how fees related to global benefit programs (like recognition Awardco) are budgeted and allocated.
Here at Franklin Templeton, we have central cost center that is used for budgeting various benefits expenses, including our US Health & Welfare benefits along with consulting expenses, and program fees for programs like EAP, Well-being and Recognition. All charges to this cost center are then allocated to all cost centers situated in the US, by employee count.
A downside of this approach is that our US cost centers bear the cost of global programs, while non-US cost centers do not share in the cost. With Finance, we have not been able to come up with a feasible way to spread the expenses across all global cost centers.
To make the cost allocation equitable, we are looking to charge the expense of global programs like Awardco to HR. There would be no allocation (or "chargeback" to other cost centers/the business).
Curious to hear from others - do you budget for this expense in HR? Allocate across the business? Or something else.
