Benefits are an important component of any compensation package, with many employees looking for employers that will provide a good balance between wages and benefits. Often, the benefits an employee receives are a deciding factor in whether or not to accept a job offer or seek other employment opportunities. In fact, 59% of employees say they would give up some salary to receive better health benefits. Thus, companies often have benefits administrator jobs that manage benefits for all employees. However, as companies look for new ways to control costs and create efficiencies within the HR department, outsourcing the role of benefits administration is a useful strategy for companies with 75 to 6,000 employees.

Benefits Administrator Jobs
According to ADP, between 60% and 75% of mid-sized companies outsource at least some tasks related to benefits administration. And, as benefits administration only continues to grow more complex, more companies are beginning to explore the potential of outsourcing. For example, healthcare reform is increasing the compliance burden on companies regarding healthcare benefits, which can often make it difficult for less experienced staff to fill benefits administrator jobs. ADP foresees many compliance requirements posing challenges for midsized companies, such as:

  • Nondiscrimination testing
  • Automatic enrollment
  • Tracking part-time and full-time employee status
  • Expanded reporting requirements
  • New and expanded employee communications

As a result, handling benefits will only grow more complicated and take HR staff longer to complete. More time being spent on benefits leaves HR staff with less time to focus on more strategic priorities, while also creating greater opportunities for errors as a higher volume of benefits are being processed. So, when companies choose to outsource benefits administrator jobs, they can access the talent and expertise of seasoned benefits experts who can ensure stringent compliance with all applicable regulations and ensure complete accuracy. At the same time, outsourcing benefits administration also shifts liability for mistakes from the company to the outsourcing partner.

Beyond the advantages of compliance, outsourcing benefits-related responsibilities has many other advantages. For example, outsourcing benefits administration is flexible and scalable for growing companies. Instead of recruiting and onboarding new staff as headcount increases, companies can simply increase the amount of services they receive from their trusted human resources outsourcer. Similarly, if headcount decreases, companies can simply scale back the amount of services they receive, rather than laying off or firing HR staff that exceed what is needed.

In addition, outsourcing enables companies to remove some of the administrative burdens from their HR departments, allowing HR staff to place a greater focus on initiatives and priorities that drive value for the business. This could include improving employee engagement or developing new policies that will have a beneficial impact on the entire company.

For companies looking for a better way to attract and retain top talent, outsourcing benefits administration helps companies with 75 to 6,000 employees optimize the way they process and handle employee benefits. From controlling costs, ensuring regulatory compliance, retaining talent, and improving employee experience, turning to an HRO for benefits administration has many advantages that companies can leverage to improve HR functions.

For nearly 30 years, Corban OneSource has been a trusted partner for companies looking to improve HR processes while also controlling costs and increasing compliance. We offer customized solutions tailored to each company’s unique requirements and US-based benefits experts who provide dedicated and ongoing support. To learn more about our benefits administration services, contact our knowledgeable team today.