Recruiting and retaining employees these days can be a real challenge, which is why it is so important for organizations to have employee benefits that are attractive and motivating. Not only can the right benefits package lead to better retention and stability, but it can also help your employees feel valued and experience less stress. Find out more about human resources (HR) administration, how it works and how it can benefit your company.
What Is HR Benefits Administration?
Benefits administration involves the development and management of an organization’s employee benefits, including health insurance, retirement accounts, vacation or paid time off, sick leave, parental leave and more. Large companies will most often have their own HR departments that handle all of these administrative tasks in-house, while smaller companies may utilize existing management personnel or choose to outsource their needs.
The process of HR administration typically involves evaluating and managing an organization’s current benefits program, working with benefits suppliers, choosing competitive options, communicating with employees, educating employees about benefits offered, helping to enroll employees and determining if the benefits are meeting the needs of employees.
Which Benefits Should You Offer?
Deciding which benefits will be of most value for your employees and their families is essential. The right package may be what separates you from the competition. There are many advantages to a variety of different benefits, but some of the most common include:
- Health, dental and vision insurance
- Group life, and accidental death and dismemberment (AD&D)
- Short- and long-term disability
- Retirement savings plans, including 401(k)s
- Supplemental coverage, such as critical illness or even pet insurance
- Office perks, including bonuses, gym memberships, flexible hours or wellness programs
- Voluntary employee benefits
Choosing the best benefits for your employees will depend on your time-in-business, industry, geographic location, average number of employees and your business goals.
How Are Benefit Costs Managed?
Many business owners are concerned with the ongoing need to balance a demand for competitive employee benefits packages and the ongoing impact to their financial bottom line. This, in essence, is one of the key purposes to HR benefits administration. Businesses must carefully weigh out their profit margins against the costs of various benefits available. It’s generally best to lean on industry professionals to help with a cost-benefit assessment, whether an insurance administrator, HR professional or preferably both. When done carefully, most of the time businesses are able to create a benefits package that fits their budget, while still remaining attractive to employees.
How Do You Maintain Compliance?
Unless you are an employee benefits insurance and/or human resources expert, understanding all of the compliance rules surrounding benefits is, in all reality, next to impossible. There are many different federal and state laws and regulations that differ based on a variety of factors, including the size of your company and the number of employees. Working with an internal or outsourced HR administrator allows businesses to ensure that this arduous task is completed in the best interests of the business and its employees, while maintaining compliance with regulatory requirements.
Is Outsourcing Your HR Benefits Administration the Right Choice?
If you run an organization and find it difficult to stay on top of your HR benefits administration, outsourcing can help to improve your employee benefits offering, while saving you costs and improving compliance—let alone freeing up valuable time to better grow your business.
Trying to run a business while simultaneously functioning as your own HR department can be tough. If you’re struggling to keep up or simply want to give your employees more than you are currently offering, reach out to Momentum Employer Group today. We’re happy to answer your questions and tell you about the services we offer for businesses of all sizes.