6 Advantages to Outsourcing Benefits Administration
Outsourcing benefits administration has become commonplace. A study by Guardian Life Insurance found that three in four employers outsource benefits administration. Outsourcing benefits administration means you’re bringing in a team of experts that will develop best practices and ensure they understand your benefits package to effectively educate your employees, provide superior customer service and excellent oversight of everything related to your company’s benefits program.
Outsourcing has numerous benefits for an organization, including:
- More time devoted to other HR issues and less impact on your HR department
Outsourcing benefits administration gives your organization’s existing HR department the ability to become a much more efficient and effective team. They can focus on other pertinent tasks knowing that the benefits are being taken care of and the employee experience is good.
- Administration delivered by professionals with up-to-date skills, expertise and resources
Benefits administration professionals stay up-to-date on federal and state regulations that affect employee benefits. In addition, they are also up-to-date on the latest HR technologies that will improve efficiency. Working with an outside benefits administration team means it is less likely that an employer will miss compliance requirements and new legislation. Plus, the constant monitoring of benefits administration means efficient and effective methods of employee benefits administration will always be in use.
- HR team can focus on employee engagement
Removing repetitive and time consuming tasks allows the HR team to be responsive to employees’ other concerns which can lead to increased employee engagement and a higher retention rate.
- Reduced liability
Your organization can reduce liability by placing the responsibility of employee benefits management with the third-party benefits administration team.
- Time savings
Outsourcing administration can save your organization’s HR staff time and training expenses. Time is money.
- Opportunity for flexibility with company growth
If your business grows, your benefits administration remains the same. Your organization will have the support to make the changes needed to ensure that your benefits plan is consistently relevant and maintainable.
For information on JS Clark Agency’s Benefits Administration services click here.