The HR department traditionally oversees the process of creating and managing the employee benefits administration process. This may include important benefits such as health insurance, retirement plans, and paid time off, which are highly valued by employees.
Benefits are crucial to both employers and their employees. They serve to entice and retain high-quality employees and boost company morale. In fact, according to a 2023 Forbes report, 1 out of 10 employees would take a pay cut in exchange for better benefits.
It can be difficult for small businesses to manage increasing expectations for employee benefits and provide a benefits package that appeals to potential employees. Large companies with greater resources are more likely to offer extensive benefits such aas unlimitedpaid time off and corporate perks like discounts and meals. This can make it more difficult for smaller companies to compete and often leads them to consider benefits administration outsourcing.
For small businesses, benefits administration outsourcing can be incredibly helpful in providing a better process in administrating benefit programs for their employees. By outsourcing benefits administration, small businesses can help ease the burden for what’s likely a small HR team and remove the limits placed upon them by their small size.
A variety of consulting firms and third-party human resources providers are available for businesses to choose from that include benefits administration outsourcing. A company can outsource part of its HR needs or all of them. Using a PEO, or professional employer organization, like TriNet, has certain advantages. PEOs offer access to comprehensive benefit options. PEOs usually work with multiple health insurance carriers with great plans from leading carriers, so businesses can access a wide range of premium benefits. Furthermore, PEOs can help with open enrollment with its open enrollment application which helps to simplify the enrollment process for employees.
The economies of scale that can come with benefits administration outsourcing have many positive aspects for small and medium-sized businesses. Read on to learn how outsourcing your benefits administration can help benefit your business and improve employee engagement.
A PEO can scale with your company as it grows, meaning your size no longer limits your benefit options. You'll have the ability to access top insurance carriers with great options for employees, their families and even their pets. With a Certified Professional Employer Organization like TriNet, you have the added security of knowing that your human resources needs are addressed by a provider who is certified by the IRS for meeting higher standards and responsibilities.
Your employees will be able to access medical, dental, vision, life insurance, disability, retirement and commuter benefits, as well as a wide range of voluntary benefits. There are even perks like discounts and corporate rates with top brands for dining, entertainment, and travel, plus exclusive discounts on flowers, gym memberships, and auto purchases.
Small businesses often come with small HR teams, or none. Outsourcing benefits administration leaves the enormous task of managing benefits administration and fielding employee questions to the benefit specialists.
A CPEO like TriNet can also help with many time-consuming HR functions like payroll processing, compliance, and HR expertise. Having a dedicated team help with these tasks allow the HR department to focus on more strategic efforts.
An outside company with the right expertise can help keep your benefit programs in compliance with state and federal requirements. A team of compliance experts can help you navigate and provide support with Affordable Care Act, COBRA-related communications, disability, and state reporting requirements.
When considering any method of benefits administration outsourcing, determine whether the company can help you with compliance requirements.
Through administration outsourcing, you may be able to help reduce expenses. One industry study found that outsourcing HR tasks rather than keeping them in-house led to a 40% reduction in related costs.
Without a doubt, your benefit offerings are an asset in the battle for talent. For new employees who value premium benefits, TriNet works with leading providers both regional and national. TriNet also offers small and medium-sized businesses access to benefits that rival big companies, helping them compete for top talent.
With all the intricacies that come with benefits administration, having access to experts with current knowledge can prove invaluable.
Benefits administration outsourcing may include access to a dedicated team of experts at your fingertips that can assist with workers' compensation or even handle claim administration on your behalf. Other expertise can include industries-specialized teams who conduct on-site assessments to help with workplace safety focused industries such as manufacturing and financial services. It's also good to have experts help with dealing with employment-related claims.
Today's employees value the user experience and appreciate constant access to their benefits information. Look for third-party services that offer 24/7 remote access and mobile access through self-service portals. This can include services like streamlined employee onboarding and efficient new-hire training that will appeal to employees.
They also feature streamlined benefits enrollment and easy communication between employee and employer, making the process smooth and accessible in one, easy-to-navigate location.
Access to premium benefit plans is no longer reserved for large companies, it is just as achievable for small businesses like yours. TriNet-sponsored benefit plans go beyond access to exceptional health and retirement coverage to include additional benefits such as accident and illness policies, auto and home policies, commuter benefits, and more.
TriNet also adds to the competitive advantage and desirable offerings through their Enrich™ product line. This product line allows customers to offer tax-optimized reimbursements for expenses related to medical travel, education, disaster relief, and child adoption. TriNet and Enrich™ can help you show that you care about your employees while improving access to premium benefits.
This communication is for informational purposes only, is not legal, tax or accounting advice, and is not an offer to sell, buy or procure insurance.
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