by srodriguezOutsourcing Benefits Administration: Are You Ready?
Whether outsourcing your benefits administration for the first time or making the switch to a new vendor, it’s important to consider your current and future responsibilities and goals alongside your internal capabilities. Which route best aligns with your benefit needs and challenges?
Are you prepared to continue handling all tasks internally? Some organizations insource these tasks because they are uncomfortable with relying on a third-party to manage their administrative functions. However, insourcing requires a continual investment in technology development, ongoing training in the use of the technology, and constant vigilance regarding regulatory compliance. Over time, these demands can drain resources and drag HR’s focus away from other important priorities.
Co-sourcing provides a middle-ground that enables you to retain some processes in-house (call center services, for example), while outsourcing remaining responsibilities. This approach enables companies to drastically minimize the impact of the most burdensome benefit tasks, such as enrollment and regulatory compliance.
Given the growing difficulties associated with benefits administration, however, more employers are choosing to fully outsource their benefits administration. Fully outsourcing can provide the infrastructure, technology, and services you need to confidently handle a myriad of benefits administration tasks as your company grows, as well as help ensure you maintain compliance with regulatory requirements, such as the Affordable Care Act (ACA) and COBRA.
How can you decide if outsourcing your benefits administration is right for your company?
A good place to start is by asking your internal staff and business partners the following questions:
- Do we have the appropriate resources and infrastructure to handle all aspects of our benefits administration in-house?
- Do we have the financial support to develop and maintain the skill sets and technology needed to manage our benefits administration effectively?
- Do we have the in-house expertise to understand and keep up with complex regulatory compliance requirements?
- Can we continue to support the strategic initiatives necessary for our company’s growth while also internally managing all of our daily administrative functions?
If you answered “no” to one or more of these questions, now may be a smart time to consider how outsourcing your benefits administration could positively impact your company. Newly revised for 2017: We invite you to download Empyrean’s At-a-Glance Guide to determine if benefits administration outsourcing is right for your company.
With the right solution, outsourcing can help increase your team’s productivity, increase employee engagement and retention, and lower costly errors and risks. This free guide will help you find a partner with the adaptive technology, processes, and team to support your business as it grows and evolves.
As you read, we’d love to get your thoughts. Feel free to contact us with questions or comments at info@goempyrean.com.