Offering employee benefits is a great way to attract top talent, increase employee loyalty and create an excellent company culture. The only problem is that managing benefits in-house can be arduous and time consuming. There are also strict guidelines and regulations that must be met to remain legally compliant. Consequently, some business owners struggle in this area, which can be detrimental to operations.
3 Ways to Simplify With Employee Benefits Administration
One solution is to outsource employee benefits administration to a human resources outsourcing (HRO) firm. These third party HR providers eliminate much of the stress involved with employee benefits and make the process more efficient. Here are some specific ways that an HRO can simplify matters and free up more of your time.
Ensure Business Compliance
The Affordable Care Act (ACA) combined with State and Federal healthcare regulations make it so business owners must meet multiple legal requirements. Unfortunately, these regulations are sometimes difficult to understand and are often evolving, which can make your life more difficult. Even if you have the best of intentions, you may make a mistake if a law suddenly changes.
If you fail to meet regulations, it can end up costing you financially, not to mention the headaches that come along with it. However, outsourcing employee benefits administration will keep you compliant at all times and make sure that your business adapts to any changes that are made to laws on both the State and Federal level. Getting over this hurdle is huge and should help to avoid any major setbacks to keep your business in the clear.
Spend Less Time and Energy on Administrative Tasks
Paperwork alone can eat up a huge amount of your time. Combine that with employee enrollment, auditing and making payroll deductions, and you can end up spending an exorbitant amount of time on administrative tasks. Going through a third party HRO is advantageous because they will handle the majority of paperwork and ensure that each employee gets the specific benefits they need.
Because of their understanding of benefits programs, they’re also often able to negotiate better deals than you could typically find on your own. As a business owner, this simplifies your life and makes it so your employees have access to quality plans. In turn, you can keep your workers happy and expect higher productivity.
Offer Access to an Online Portal for Benefits Management
Another thing that some HROs bring to the table is technology to make things even easier for you and your employees. An online benefit portal is a good example and allows you to log in 24/7 so you can instantly find information concerning employee benefit plans. You can find answers to any questions you may have and check details concerning employee benefits. Consequently, it’s a great way to improve communication and keep everyone on the same page.
While offering employee benefits can help your business, it can also seem overwhelming to keep up with administrative tasks. Luckily, there are other options than handling benefits management on your own. Outsourcing to a professional HRO keeps your business compliant and frees up your time so you can focus on what’s really important.