Benefits are an important factor in payroll. Many employees are attracted to their jobs in the first place because of the benefits offered. Therefore, it’s essential that they’re managed correctly. Managing benefits can be a major task for your HR department, however, and can take up precious time.
Outsourcing your benefits management is an option that could streamline your company’s daily operations. But is it the right decision for your company?
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Hire an Expert
Outsourcing your benefits administration puts it in the hands of experts. Companies that offer benefits management services specialize in it. An in-house HR department performs many different functions and so wouldn’t be able to bring the same level of expertise to the task.
An external company could also have access to a wider variety of benefits and insurance plans. The benefits plan and its management would be tailored to meet your company’s needs. Your employees would benefit from having greater options and your HR department can focus on other tasks.
It can be difficult to keep up with changes in requirements surrounding payroll and benefits. Staying compliant with legislation has never been easier when an external company is the one handling it for you. Outsourcing puts your benefits in the hands of a company that is an expert in the pertinent laws and requirements.
It’s important to stay compliant, no matter how often the regulations change, because benefits directly affect payroll and taxes. Keeping your records compliant and up-to-date is essential not just for payroll but also for accurate taxes.
Hiring an external company to manage your benefits can save you money in the long run. You would have to pay for the benefits management services, but you would save on the cost of training an employee in-house to manage them. In addition, a specialist company could have access to discounts on benefits and insurance that your company wouldn’t on its own.
HR professional are busy people. There are constant demands on their time and many tasks that they perform. Without the task of managing benefits taking up the time of your HR staff, they can focus on other things.
A downside of outsourcing your benefits administration is that your company loses direct control over it. The decisions and day-to-day management of your company’s benefits would fall in the hands of an external company. However, if you can hire a company that takes the time to understand your company’s needs, it may be easier to stay up-to-date.
Another con is that while an external company may have access to more and better deals and plans, they may also be able to change them. The insurance company could change or the details of the benefits plan could be switched. This practice may not benefit all of your employees, so it’s important to make sure that any company you work with will communicate well with you.
Use a HRIS
Another option for benefits management is to use a HRIS. A software solution would still free up your HR department’s time without requiring the services of an external company. The decisions and control would remain in-house, but benefits would be managed more accurately and more efficiently.
A HRIS can take some time to implement, but in the long run has a lot of advantages for your company. HR software can manage not only benefits but employee databases, training materials, payroll, and more.
Is your company looking for a software solution to manage benefits? Let us match you with a HRIS that will fit your company’s needs. Visit our vendor match page to get started now.