Five Secrets of Benefits Administration – Secrets You Can Use
Studies have found that employees value their benefits almost as much as their salary. Thirty percent of employees in a recent survey said that they would immediately begin looking for employment elsewhere if their health insurance was terminated. At some point you'll have to consider benefits administration. And while benefits administration can be a messy, confusing affair and one more issue for your HR department to deal with, in the long term benefits administration can't be ignored. Here are five secrets of benefits administration that you should know.
- Type of Benefits Matter – Just handing out paid holidays and a Christmas bonus doesn't cut it anymore. Ninety percent of employees say that their health insurance is just as important to them as their paycheck, meaning that you can't afford not to offer benefits. Many employers pick a cheap package of benefits and leave it at that, but taking the time to give your employees what they really want and deserve will help your business in the long run. Good benefits administration includes picking the best plans.
- The Job Isn't Easy – In larger companies benefits administration will be a full time position for one of your HR employees. Studies have found that as much as forty percent of a benefits administration worker's day is spent on the telephone dealing with employees, providers, and more. From answering questions to setting up better deals, benefits administration takes a good bit of effort that is often overlooked by employers.
- Poor Administration Can Hurt – Your company can land in serious hot water with the IRS or other agencies if your business administration is sub-par. From COBRA violations to tax fraud, a simple benefits administration error could cost you big.
- Automation Can Help – While at first glance you may not want to invest in them, benefits administration programs can be a godsend. In addition to providing relief to your human resources department since employees will be able to manage their benefits administration info from their own computer, you can avoid the aforementioned potential for legal trouble since automated benefits administration systems are far less likely to result in error. Outsourcing benefits administration has been popular for years and is a valid solution as well, and companies like Unicorn HRO can help tremendously with benefits administration.
- Employees Will Chip In – You can save yourself money by implementing benefits administration programs that use plans employees contribute to. For example, seventy six percent of employees participate in retirement plans that they contribute to and those employees with families usually end up contributing thirty percent towards their health care. If you need to offer benefits on a budget, choosing employee-contribution related plans is an option that can save you money and easy benefits administration can help them contribute with ease. And the previously mentioned business administration software makes it easy for them to manage their accounts.
These secrets can help with your benefits administration program. Quality employee benefits administration will boost morale, retain your best employees, and attract great new hires. Outsourcing and automation can save your human resources department from a world of work and let them focus on other affairs. Keep all of the above in mind when you begin to review your company's benefits administration plan, and you'll come up with a great program as well.