Outsourcing Employee Benefits
The task of handling employee benefits is an extremely detail oriented and time consuming one, even for full time Human Resources professionals. If you are running a small business without a Human Resources person to handle this undertaking, it can be positively overwhelming. Thankfully, it is possible to outsource your company’s employee benefits duties. Doing so will provide a variety of positives to your organization.
- You will ensure compliance for the more complex employee benefits which carry hefty legal requirements. Examples of this are the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), health care and dependent care flexible spending accounts, and 401(k) administration.
- You will reduce the administrative burden that comes with benefits handling for both you and your staff.
- You will have access to the expertise of employee benefits authorities, allowing you to get back to work in the field you know best.
As with any decision you make with your business, you will want to weigh your options carefully when selecting a firm to handle your company’s employee benefits. You can start by checking with fellow business owners in your area to see what firms they are using. Make sure to ask for references for any firm you are considering, and check them to make sure they are positive.
It’s especially important to ask references how quickly the firm responds when a question or problem arises. An additional element to consider is the firm’s use of technology, and if it matches up with the expectations of your company. While the typical contract with the firm you choose will be for only one year, you should still select a company you feel you can stick with over the long-term, as the process of switching benefits administrators can be confusing and costly, not to mention potentially disruptive to your employees.