5 Reasons to Outsource Benefits Administration Tasks

Employee benefits administration outsourcing is becoming a large and growing part of an employer’s overall business strategy.  Turning benefits administration from a back office function over to a trusted administrator can promote efficiency, increase compliance, and improve overall employee satisfaction.  If not done well, employees may feel the company doesn’t care about them and that can put a company at risk.

The following are 5 important reasons to outsource benefit administration responsibilities:

1. Right-sizes your staff. Outsourcing benefits administration can free up HR resources.  Existing HR personnel can now focus on more strategic activities, such as shortening response time for employee concerns, increasing employee engagement and retention, and recruiting top talent. 

2. Makes expertise affordable. A benefits outsourcing company can give you access to a superior level of talent and knowledge without taking on the expense of an in-house benefits expert.  Hiring in-house benefits expertise doesn’t come cheap and is often out of reach for small to medium sized businesses. 

3. Boosts efficiency. A great employee benefits administration outsourcing company can help employers streamline their processes and find ways to reduce over and underpayment of premiums for insurance plans and other programs. They can also help employers create effective employee benefit communications. 

4. Reduces exposure. Outsourcing benefits administration can reduce liability in the case of mistakes.  It also protects companies by implementing ‘objective checks and balances’ between management and those who make the day to day decisions about terminations.

5. Upgrading technology. Working with an outsourcing company gives organizations the opportunity to upgrade their technology without incurring big investments in IT infrastructure.  Consumer attitudes toward technology have become far more sophisticated in recent years, and those expectations extend to how workplace benefits are administered.  Employees expect well-designed online benefit enrollment systems that they can access from anywhere, 24/7.  Building such a site internally -- with the security headaches involved when managing sensitive healthcare data -- is a massive undertaking.  A benefits administration company has already done that work in advance.  The best companies can even tailor the site with your branding and messages.

Health and welfare benefits is one of the largest and fastest growing expenses incurred by organizations today.  From open enrollments, onboarding new benefited employees, managing payroll benefits deductions up to and including COBRA; outsourcing benefit administration tasks is increasingly becoming a compelling and viable strategy.

For more information regarding MosaicHR’s benefits administration outsourcing, contact us at (303) 645-4270 or visit www.mosaices.com.