To Boost Efficiency, Leverage HRO for Employee Benefits Administration

June 4, 2025・7 mins read
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To Boost Efficiency, Leverage HRO for Employee Benefits Administration

Table of contents

  • 1.5 Key Benefits of Using an HRO for Employee Benefits Administration
  • 2.Cost efficiency and optimization
  • 3.Enhanced employee satisfaction and retention
  • 4.Streamlined administrative tasks and compliance support
  • 5.Scalability and flexibility in benefits administration
  • 6.Compliance and data security
  • 7.Enhancing HR Through Technology and Outsourcing
  • 8.Leveraging HR technology to enhance your workforce
  • 9.Outsourcing payroll and benefits administration
  • 10.The Strategic Advantage of HROs for Small Businesses

Every company that has employees must take care of human resources administrative tasks. Many small and medium-sized companies, though, don’t have the staff, money, or expertise to handle all of these tasks in-house. Human resources outsourcing (HRO) provides a solution. HRO companies give you the opportunity to outsource your employee benefits administration, as well as many other functions, to help relieve you of the burden of having to deal with the paperwork and requirements that may be involved in administering benefit plans for your employees.

HRO providers also offer other types of crucial HR support. You can, for example, outsource services to get help with payroll, talent acquisition, risk mitigation, and/or employee training.

When you’re in growth mode, you want to focus on building your business, not on spending your time and resources on administrative tasks. An HRO provider has the experience and knowledge to help handle your benefits administration and other HR tasks expertly and efficiently, freeing you up to do what you do best.

5 Key Benefits of Using an HRO for Employee Benefits Administration

Offering good benefits can help a business attract and retain productive workers. An HRO can streamline the benefits administration process to help it run smoothly and easily for you and your employees. The result can include boost in employee satisfaction, stronger workforce retention and you can focus your energies on your core business goals.

1. Cost efficiency and optimization

The amount that employers pay for employee benefits is significant. According to the U.S. Bureau of Labor Statistics, employee benefits account for about 30% of the total employee compensation paid by private-sector employers. So, it’s important to enhance the cost efficiency of benefits whenever possible, while continued focus on quality.

Even better is optimizing the cost of benefits administration while giving your employees a wider choice and/or comprehensive benefit packages. An HRO solution could save you money by helping you handle benefits administration more efficiently than you could do on your own. It uses trained personnel and powerful HR technology. Some HRO providers can also provide access to benefits they obtain through their networks.

One outsourcing option, a professional employer organization (PEO), goes a step beyond standard HR outsourcing. A PEO may offer small-company employees’ access to big-company benefits.

2. Enhanced employee satisfaction and retention

Offering your employees an attractive benefits package makes a big difference in the talent acquisition stage and beyond. Benefit options are so important that they are often one of the first things that job applicants ask about. Health insurance, retirement plans and other employee benefits provide workers with security and contribute to their standard of living. If your benefits aren’t competitive, your workers may jump ship to join companies that offer them more.

Beyond the practical aspect of benefits, there is also an emotional one. When you offer top benefits, employees are grateful. They feel supported, valued and more connected to the company. This, too, contributes to employee loyalty and retention.

3. Streamlined administrative tasks and compliance support

You are an expert on your business, but probably not on HR administration. When you work with an HRO provider, you’re getting help from experts in HR administration without having to invest resources in that expertise in-house. HROs have the personnel, technology, systems and experience to help handle your HR administrative tasks efficiently and effectively.

HROs also may have compliance expertise. They can help you navigate the many potential pitfalls that may lurk in the complex requirements that govern employee benefits.

4. Scalability and flexibility in benefits administration

If your company is growing, or you expect it to grow in the future, your benefits administration needs may change as you bring on more people. If you are working with an HRO, their support services can help  your changing needs. It could provide a simpler and cost-effective option than using your in-house personnel to keep up with the growing HR workload.

5. Compliance and data security

There are many laws and regulations that apply to employee health and retirement plans. Your business might be subject to federal laws like the Affordable Care Act (ACA), continuation of health coverage (COBRA) and the Employee Retirement Income Security Act (ERISA). You may also face state and local requirements. These complex regulations are frequently updated. Instead of spending your time trying to learn about, keep up with them , you can leave it to the experts at an HRO provider to help you navigate  it.

Much of employee data is sensitive and confidential. It has to be handled appropriately to keep it secure. An HRO typically uses up-to-date human resources technology that includes a secure data storage and strong data protection measures. When you go through the vendor selection process, ask about the HRO candidates’ security systems.

Enhancing HR Through Technology and Outsourcing

HR technology platforms have greatly enhanced the speed and accuracy of processing HR administrative tasks. If you are still processing tasks by hand, an HRO can provide a dramatic difference. Or, if you’re running your own HR software system in-house, you might save substantial time by outsourcing. Let an HRO take on the updating, troubleshooting and other tasks necessary to keep technology running. You can rely on their expertise.

Leveraging HR technology to enhance your workforce

Just as an HRO can free up your time to focus on your core missions, it can also free up your employees’ time so they can focus on theirs. One way it does this is by providing self-service employee portals. These enable your workers to go online at any time to get information about benefits, enroll in plans, or update their employee records. Employees can avoid the frustration of waiting for in-house HR staff to get back to them.

Outsourcing payroll and benefits administration

In addition to administering benefits, one of the most popular services of HROs is payroll administration. You get peace of mind knowing that your payroll processing is being support by experts. Your employees get the satisfaction of being able to count on their paychecks.

The Strategic Advantage of HROs for Small Businesses

Working with an HRO helps to reduce your in-house administrative burden. This could free up your resources to give you a competitive edge in fulfilling your company’s goals. According to one study, about 69% of businesses aligned with PEOs were growing in a given year, but only 28% of small businesses were growing overall.

HRO services can also boost employee satisfaction, productivity and optimizing the high costs and institutional knowledge losses that may come with turnover.

TriNet is a leading provider of HRO services for small businesses. Our HR technology platform is powerful and intuitive. We have options so you can select the level of support you need and can grow with you in the future.

We tailor our services to your industry and your company’s needs. We use our expertise in benefits, payroll, compliance and other HR functions to support you and help you so you can count on us. We go beyond benefits and payroll administration to provide best practice guidance in areas such as recruitment, training and workforce. Schedule a time to chat with us about how our comprehensive HR solutions can help your business.

This article is for informational purposes only, is not legal, tax or accounting advice, and is not an offer to sell, buy or procure insurance. TriNet is the single-employer sponsor of all its benefit plans, which does not include voluntary benefits that are not ERISA-covered group health insurance plans and enrollment is voluntary. Official plan documents always control and TriNet reserves the right to amend the benefit plans or change the offerings and deadlines.

This article may contain hyperlinks to websites operated by parties other than TriNet. Such hyperlinks are provided for reference only. TriNet does not control such web sites and is not responsible for their content. Inclusion of such hyperlinks on TriNet.com does not necessarily imply any endorsement of the material on such websites or association with their operators.

TriNet Team

TriNet Team

Best practices from our HR experts

Table of contents

  • 1.5 Key Benefits of Using an HRO for Employee Benefits Administration
  • 2.Cost efficiency and optimization
  • 3.Enhanced employee satisfaction and retention
  • 4.Streamlined administrative tasks and compliance support
  • 5.Scalability and flexibility in benefits administration
  • 6.Compliance and data security
  • 7.Enhancing HR Through Technology and Outsourcing
  • 8.Leveraging HR technology to enhance your workforce
  • 9.Outsourcing payroll and benefits administration
  • 10.The Strategic Advantage of HROs for Small Businesses