Highlights
- Employee benefits administration can take up valuable time from busy HR teams.
- By outsourcing this HR function to an external partner, companies can reduce their admin workload, stay compliant, and obtain premium benefits at a lower cost.
- At Empower HR, we give you access to Fortune 500-level benefits and manage them for you. Contact us to learn about our customized benefits administration solutions.
As your small business grows, handling HR responsibilities becomes increasingly challenging. Managing employee benefits, for example, entails a series of complex and time-consuming tasks, from overseeing the enrollment process to payroll integration and keeping employees informed. So why not partner with an external HR specialist?
Outsourcing employee benefits administration can be a game-changer, freeing your HR team from administrative tasks and allowing them to focus on more strategic initiatives.
Intrigued by the potential benefits? Read on to discover the top six reasons why outsourcing employee benefits administration is a smart move for your growing business.
Let’s dive in!
6 Reasons to Outsource Employee Benefits Administration
Managing employee benefits is not an easy task. Sorting through complex options, comparing costs, and ensuring compliance demands significant time and expertise. This can lead to frustration, wasted resources, and a lack of focus on other areas.
Outsourcing employee benefits administration allows your HR team to access the expertise and resources typically found in larger companies.
Here are the top six reasons why you should consider this:
Proficiency and Experience
Outsourced HR consultants have extensive experience navigating the ever-changing world of employee benefits. Their knowledge and recommendations can have a very positive impact on the employee experience with benefits, leading to higher employee satisfaction and productivity.
Streamlined Efficiency
Partnering with an external service provider can streamline the entire benefits process, from enrollment to ongoing administration. They act as the single point of contact for inquiries, help you find cost-effective options through extensive broker networks, and leverage technology to implement changes and updates rapidly.
Potential for Lower Costs
Rising healthcare and benefits costs are a major concern for many companies. Organizations can benefit significantly from the economies of scale offered by service providers’ buying power. Long-term relationships with various carriers allow them to negotiate favorable renewals and compare options more effectively.
Access to a Wider Benefits Palette
Outsourced HR consultants, through their established broker relationships, can access a broader range of products and packages. This gives employees the flexibility to choose benefits that best suit their current needs and life stages.
Enhanced Liability Protection
Staying current with ever-evolving regulations is crucial for ensuring compliance with employee benefits. Outsourced HR consultants have the expertise and obligation to keep up with these changes and understand their impact. Additionally, the burden of confidentiality for sensitive health and financial information automatically shifts to the service provider.
Unleashing your HR Team’s Strategic Potential
By offloading the administrative burden of benefits, you free up your internal HR team to dedicate their time and expertise to strategic tasks. This empowers them to focus on areas like talent development, fostering a positive company culture, and aligning HR initiatives with your overall business goals. Your HR team can become true strategic partners, driving growth and employee satisfaction.
The Not So Good Side: Risks of Outsourcing Benefits
When companies decide to outsource their employee benefits, it is essential to anticipate challenges and consider potential constraints. Identifying possible solutions before negotiating with service providers can be worthwhile. The potential limitations of involving outsourced HR consultants in employee benefits include:
Communication Issues
Accessing service providers when necessary, whether in person or virtually, is a critical aspect of outsourcing HR functions. However, outsourcing often comes with a new communication process which is usually not as straightforward or quick as having an internal HR team handle employee benefits. This can lead to longer turnaround times. Fortunately, by establishing proper protocols, this issue can be mitigated and become a non-issue.
Changing and Growing Needs
Business needs keep evolving and changing. An organization might run into issues if service providers have limited capabilities that might not cater to the organization’s ever-changing needs. Therefore, it is crucial to ensure your outsourcing partner has the flexibility to support your growth and expansion.
For a smooth process, it’s essential to review the products and services you have annually to ensure they keep developing at the same pace as your team.
Inability to Build Trust
Deciding on benefits has a personal touch, and employees might not trust the external service provider to have their best interests in mind. Being an external team, they might not be able to influence the options chosen. Considering that the employees will likely not have a personal relationship with them, it will be difficult to trust their advice.
The right outsourcing partner will provide personalized service and touch to build relationships and bridges to ensure everyone is comfortable and on the same page.
Big-Time Benefits Without the Big-Time Workload: How to Get Started
Administrative tasks can drain your internal HR team’s time. Outsourcing benefits administration allows them to focus on strategic initiatives and employee well-being. On top of this, you get to offer premium benefits at a more affordable cost, among other advantages.
At Empower HR, we are here to help you navigate benefits administration. Our comprehensive services are designed to take the burden off your internal team and ensure your employees have access to the plans they deserve.
Ready to see how outsourcing benefits can transform your HR department and make your employees happier? Contact us now!