As competition for attracting and retaining talent grows, employee benefits have become increasingly more important for companies to differentiate themselves in this tight labor market. Many small and medium-sized businesses are turning to employee benefits outsourcing to reduce costs yet offer a robust benefits package that provides value to employees.
According to iSure, one of the biggest advantages to benefits outsourcing is allowing the company to focus on organizational objectives and offloading the administrative tasks to employee benefits professionals. Benefits vendors can also provide oversight and assist with regulatory compliance. Benefits vendors also can use their expertise to develop creative benefits offerings for the organization, while providing value, but still containing costs.
When considering a vendor, the employee’s end-user experience should be considered, especially when designing the benefits administration processes. Many employees would rather speak to someone within the organization when discussing their benefits, so the communication process is an important factor to consider. The scalability of the vendor’s services should also be analyzed to ensure that the vendor will be able to provide adequate services as the business grows.
Benefit providers can provide customized, a la carte services to companies based on their needs. For many companies, employee benefits outsourcing is a great solution for reducing costs and mitigating risks related to benefits administration.