Do you ever feel overwhelmed by the day-to-day demands of human resources management and benefits administration? Is your organization struggling to navigate the muddy waters of compliance and cost control?
You are not alone.
Did you know: The cost and complexity of modern human capital management has led almost 80% of employers to outsource at least one HR activity, and that number is only projected to increase. Click To Tweet
We’ll dive into a brief overview of benefits administration outsourcing, debunk a few outsourcing myths and even explore a recent PlanSource case study – but this is just scratching the surface! Be sure to download our full guide below for more information.
What Activities Are Outsourced?
It should be no surprise that the most commonly outsourced benefits administration services include employee assistance programs (77% outsourced), flexible spending account management (69.4% outsourced), and COBRA administration (63.3% outsourced). On average, companies are outsourcing 40% of their benefits functions.
Most Commonly Outsourced Benefits Services
- Employee Assistance Programs – 77%
- Flexible Spending Accounts – 70%
- COBRA Administration – 64%
- Retirement Benefit Payments – 56%
- Pharmacy Benefits Administration – 53%
*Statistics via SHRM
Why Outsource Benefits Administration?
Cost control and access to industry expertise are two of the primary decision drivers for outsourcing benefits administration. Despite many common misconceptions, it can actually be quite cost-effective to outsource human resources functions. And, outsourcing with an experienced partner in the benefits space will reduce the risk carried by your company and will ensure you maintain compliance across the board. Complex administrative activities that involve significant compliance requirements, like COBRA administration or HSA/FSA management, are prime candidates for outsourcing.
72.6% of administrators cited compliance as a major hurdle while 51.9% cited cost as a major factor when choosing to outsource. Additionally, 47% of organizations cited outsourcing to tap into more specialized expertise.
Outsourcing Benefits Administration Can…
Tap Specific Expertise
Navigate the Changing Landscape
What Can I Outsource?
The options are essentially endless when it comes to outsourcing benefits services. From offloading cumbersome processes, like COBRA administration, to full benefits outsourcing, packages and plans are available to meet any specific needs or budgets.
COBRA Administration is the most common benefits administration service to outsource, with more than 50% of companies* choosing to hand COBRA off to a third-party.
Outsourcing your FSA/HSA/HRA administration can help your team better navigate the intricacies of HDHPs versus traditional health plans and offer access to helpful online tools for your employees, like educational videos and a convenient mobile app.
By outsourcing billing, your company can minimize risk, more easily identify and rectify discrepancies, and establish a single point of contact for billing multiple carriers.
Partnering with an experienced outsourcing organization will ensure best practices when it comes to all employee communications.
Leave the Q&A sessions to the experts by outsourcing your support to a full-time employee contact center.
Full Benefits Outsourcing
Though human resources teams are free to pick and choose individual services to outsource, sometimes a full outsourcing solution is the best option. By fully outsourcing benefits administration, HR teams will have more time to focus on strategic business initiatives while trusting risk-mitigation, benefits best practices and customer service to a team of experts. Is full benefits outsourcing right for you? Consider the following services:
Determining Your Needs
How do you know if outsourcing is right for your organization? There are a few key points to consider when examining outsourcing options and potential partners.
Finding The Right Fit
Not all benefits outsourcing companies are alike, and it is important to have a solid understanding of your company’s unique needs and individual goals. Then, you’ll need to review the goals and values of potential outsourcing partners to assess for a mutual fit. Here are a few things to consider when selecting a benefits outsourcing partner:
- Financial strength and security of the candidate company
- Commitment to customer service
- The breadth of their benefits plan options
- Their service and cost structure
- Industries and professional services
- Administrative and management expertise and competence
- How employee benefits are tailored
- Technology usage, experiences and innovation
- The fine print
You can also assess more qualitative qualities of potential partners by checking Glassdoor reviews, client forums, social media profiles, etc. to get a better feel for the company culture and employee experience.
Outsourcing Case Study
PlanSource provides a support team to school districts resulting in saved time and lower costs.
Located in the heart of Galveston County lies the city of Santa Fe, Texas. In addition to low crime rates and a beautiful and historic library, Santa Fe is home to some excellent schools that are served by the Santa Fe Independent School District (ISD). Santa Fe ISD provides work for 600+ full-time employees and boasts several academic and fine arts achievements by their students. Learn more about how Santa Fe ISD partnered with PlanSource for full benefits outsourcing!
View the full case study below to see the results of this benefits outsourcing partnership!
Ready To Make Life Easier?
PlanSource offers a full suite of benefits administration outsourcing services, from single service selections to full-service outsourcing. Download your free outsourcing guide or contact us below for your complimentary consultation!