Human Resource Outsourcing

How to choose a benefits administrator?

Did you know that 60% of employees consider employee benefits extremely important when deciding whether to stay with their current employer? This compelling statistic reveals the undeniable significance of offering a robust benefits package to attract and retain top talent. However, managing these benefits can be a complex and time-consuming task, which is why selecting the right benefits administrator is crucial. Let’s explore the things to consider while choosing a benefits administrator that will empower your workforce and drive your business forward.

What does a benefits administrator do?

A benefits administrator is a trusted ally responsible for managing and overseeing an organisation's employee benefits program. They handle a range of essential tasks, including enrollment, claims processing, compliance, and employee communication. Some of the tasks and responsibilities of a benefits administrator include:

• Designing and managing benefit programs:

  A benefits administrator works closely with employers to design, implement, and manage benefit programs tailored to their specific needs. Whether it's health insurance, retirement plans, or wellness initiatives, a benefits administrator ensures that the benefits program aligns with the company's overall objectives and supports employee well-being.

• Enabling efficient enrollment and communication:

  An effective benefits program relies on seamless enrollment processes and clear communication. A benefits administrator facilitates online enrollment systems and self-service portals that enable employees to make informed benefits choices and access relevant information. They provide educational resources, answer employee inquiries, and communicate changes and updates in benefit plans.

• Providing employee support and advocacy:

  Employees often have questions, concerns, or issues related to their benefits. A benefits administrator acts as a dedicated resource for employees, providing personalised support, guidance, and advocacy. They assist with claims processing, resolving disputes, and explaining complex benefit terms and procedures.

Why your business needs a benefits administrator

In an era where employee benefits play a pivotal role in attracting and retaining talent, having a benefits administrator offers many significant advantages for businesses. Let's delve into why a benefits administrator is crucial for your organisation’s success:

• Streamlining benefits administration:

  Managing benefits can be a daunting task, especially when dealing with multiple benefit plans, enrollment processes, and compliance requirements. A benefits administrator specialises in streamlining these administrative tasks, allowing businesses to focus on core operations. By efficiently handling enrollment, claims processing, and other benefit-related responsibilities, a benefits administrator saves time, reduces errors, and ensures a smooth and seamless benefits experience for both employers and employees.

• Expertise in benefits regulations and compliance:

  Navigating the complex landscape of benefits regulations and compliance is no easy feat. Benefit plans are subject to numerous laws and regulations, such as the ACA, HIPAA, FMLA, and COBRA. Staying up-to-date with these ever-changing requirements can be overwhelming for businesses. A benefits administrator brings expertise in benefits compliance, ensuring that your benefit plans adhere to legal obligations. They can assist with proper reporting, documentation, and adherence to deadlines, mitigating the risk of costly penalties and lawsuits.

How to choose a benefits administrator?

Selecting the right benefits administrator is crucial for the success of your organisation's benefits program. Consider the following factors when making your decision:

• Expertise and experience:

  Look for a benefits administrator with a proven track record of expertise and experience in the industry. Consider their years of operation, the number and size of clients they serve, and their specialisation in benefits administration. Analyse their knowledge of regulations, compliance requirements, and industry trends. An experienced benefits administrator will have the expertise to navigate complex benefits issues, provide strategic guidance, and ensure your program remains industrially competitive and compliant.

• Technology platform:

  Evaluate the technology platform utilised by the benefits administrator. A robust and user-friendly benefits administration platform is essential for efficient enrollment, data management, and employee self-service. Assess the platform's capabilities, such as integration with other HR systems, reporting and analytics functionalities, and mobile accessibility. A modern and intuitive platform will enhance the employee experience and streamline administrative processes.

• Cost and value:

  Evaluate the cost and value proposition of the benefits administrator. While cost is an important factor to consider, it's equally vital to assess the value you will receive in return. Compare the services, features, and support offered by different benefits administrators to determine which one offers the best combination of affordability and quality. Take into account the long-term benefits of partnering with a reputable benefits administrator that can help you optimise your company's benefits program and attract top talent.

• Customisation and flexibility:

  Every organisation has unique needs and goals when it comes to its benefits program. Look for a benefits administrator that offers customisation and flexibility to meet your specific requirements. Can they tailor benefit plans to align with your company culture and demographics? Can they accommodate changes as your organisation grows or evolves? A benefits administrator that understands and supports your organisation's individuality will be better equipped to meet your long-term needs.

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How can Infosys BPM help?

Infosys BPM provides a holistic benefits administration outsourcing encompassing services for employee and retiree savings, management of retirement plans, compensation data handling, electronic salary change letter distribution, annual compensation reviews, and claims management.