Over the past few years there has been a steady rise in outsourcing of HR benefits responsibilities; this is due largely in part to healthcare reform. Many companies do not have the time or manpower to stay up-to-date with the newest laws and requirements brought on by the Affordable Care Act.
Mistakes made within companies can lead to a lapse in coverage for the employee, and companies can incur large fees from penalties when mistakes are made when it comes to benefits administration and payroll. Therefore, more companies are reaching out to third party administrators to help handle the load.
Listed below are a few tips and aspects to consider when choosing a third-party administrator to handle benefits and payroll responsibilities.
- Do your research, know what policies your employees have enrolled in and put together packages that can be combined to create the perfect plan for them and their family.
- Is the company you’re outsourcing to available for questions before and during enrollment and will the employee be able to find information via a website or brochure?
- Have an information session to educate your employees about the products offered along with a benefits representative available to answer questions they may have regarding the policies available.
- Although the responsibility may be in another company’s hands, you want to have someone within your company trained and knowledgeable in the options available.
- Be available to add a helping hand and answer question and step in if there are any problems with the benefits administrator or enrollment process.
Keeping your employee’s in mind when choosing the best resource for benefits administration is important. You want to make sure you save money but also give the best user experience possible. The burden of benefits administration and payroll can be outsourced and take the stress off your company and keep the focus within your own company.