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From meeting employee demands and implementing best practices, to hiring and staying compliant with regulations – the HR workload is relentless. And regardless of your company’s size, managing employee benefits is a big responsibility.
While good benefits can boost employee retention and set you apart from competitors, handling these programs can take time away from other important HR tasks.
That’s why it’s worth thinking about whether or not you should outsource employee benefits administration. In this guide, we’ll look at how benefits outsourcing works, and why getting specialist help can make your employees happier, and your HR teams more productive.
Outsourcing employee benefits is when your business teams up with a third party provider to handle the management of your employee benefits package. You can let them take care of everything, from finding the benefits themselves right through to enrolling staff and providing ongoing support.
Some companies choose not to hand everything over, only outsourcing specific services such as employee wellness programs or financial planning aid.
Your organisation has the opportunity to be innovative and identify benefits that give you a competitive edge. Having a solid, well-managed benefits package is essential to attracting and retaining top talent.
When teaming up with an employee benefits broker, you’re taking a collaborative and strategic approach that contributes to a more engaged and satisfied workforce.
Is employee benefits outsourcing really worth it? Obviously, as employee benefits specialists, we think so. But here’s a more detailed explanation for why outsourcing could be the right thing for your business.
Let’s face it; benefits management comes with a LOT of paperwork. And that means time taken to deal with it all. Between things like:
Managing employee benefits in-house takes time away from the more strategic projects that your HR team could be focusing on.
Dealing with employee benefits on your own can be a lot of work. Outsourcing can save you money by cutting down on in-house staff, tech expenses, and training needs.
And it’s not just the resource side of things. Employee benefits specialists like us here at Drewberry™ have significantly more buying power than you would on your own, meaning you can get better rates and deals on your core benefits such as Group Life Insurance or Group Critical Illness Cover. That’s win-win for your company, employee relations, and your overall financial performance.
If you’re unsure about the ROI of outsourcing, check how much it costs to handle your benefits in-house (including software, staff training, and possible mistakes). If these costs are getting too high, outsourcing might be a more budget-friendly option.
Nick Nelms
Senior Consultant, Employee Benefits
Outsourcing gives you the opportunity to tap into specialised knowledge. Employee benefits consultants live and breathe benefits, doing it day-in and day-out. They can help with things such as:
Third parties can also carry out employee benefits benchmarking activities to ensure you’re pipping your competition to the post when it comes to your rewards package.
Outsourcing can help you stay on top of the laws and regulations around employee benefits. You’ll still have to be mindful of the rules, but it’ll be like having a specialist at your side, offering an extra layer of protection, providing valuable support and peace of mind when you need it most.
Choosing employee benefits is more than just meeting basic needs; it’s about offering meaningful options that match what employees really value. An external partner can help survey your employees’ experience with their benefits, and offer holistic insights such as predicting enrolment trends and providing decision support.
A good employee benefits partner will have easy-to-use software that simplifies tasks like choosing benefits and handling enrolments. Eligible employees can then stay in the loop about enrolment periods and make selections through a user-friendly platform. This takes the load off your in-house HR team, making the benefits experience seamless.
Our My.Drewberry platform ticks all these boxes. Our fully automated system effortlessly syncs with your HRIS to handle enrolment, reporting, and all those in-between tasks. Whether you’re adding, updating, or removing staff members, you’ll only need to change it once, and My.Drewberry will handle the rest.
From Cycle To Work schemes to Group Income Protection, you can keep your entire rewards offering in one place. And while your HR team tracks everything from their side, employees can self-serve from theirs. No more pain in the admin. See how it works.
Your HR team dedicates a lot of time to enhancing employee experience. Outsourcing your benefits admin frees them up to concentrate on other tasks. Not only does this prevent them from getting overwhelmed, but it also improves the overall employee experience and retention.
Plus, as your business grows, managing employee benefits can get tricky. If it’s becoming hard to handle the complexities, getting external help is a good idea.
Employees might feel uneasy discussing their details with your HR team, especially when it comes to things like Group Health Insurance (where medical history may need to be disclosed). Outsourcing eliminates any potential discomfort for employees when discussing these matters internally.
When you decide to outsource employee benefits, it’s crucial to anticipate challenges and think about potential constraints. Before choosing a partner, you should explore the potential issues and assess providers’ ability to tackle them:
When outsourcing benefits, the transitioning period can be challenging for employers, leading to disruptions in administrative processes and potential delays in accessing services. Close coordination with the new provider is vital to ensure a smooth transition and avoid any errors.
Connecting with external service providers may not be as simple as working with an in-house HR team, which can result in delays. Make sure to understand how the provider communicates and set clear expectations.
As your business changes, the services offered by providers may not always keep up. Make sure your outsourcing partner can adjust and meet the evolving needs and growth of your organisation.
While outsourcing might start off looking like a money-saving move, it’s crucial to be vigilant about the terms of any long-term contracts to ensure that over time you aren’t hit with any unexpected price hikes. Make sure before signing up to anything you are fully aware of the terms and conditions and pricing structure.
As your company grows, you should consistently assess the products and services offered by your outsourcing partners to make sure they align with the changing needs of your team.
Taking this proactive approach will help facilitate a more seamless collaboration.
Danielle Bines
Consultant, Employee Benefits
So now you know the benefits of outsourcing and what to look out for, but how do you choose the right partner for your company? Here’s what to consider when selecting a benefits administration provider:
First of all it’s important to think about what you need. Ask yourself the following:
Once you know what you need from an employee benefits provider, choosing one becomes that much easier. Knowing what you need help with also helps you to measure success!
Compare the costs and pricing structures of different benefits providers, including setup fees, administrative costs, and ongoing expenses. Ensure transparency and clarity regarding pricing to avoid unexpected charges.
If you just want one product organised and managed, you probably won’t need any fancy tech. But some outsourced benefits consultants offer handy digital tools to help remove the headache, stress, and confusion that comes with employee benefits admin. For example they can help with:
If an all-in-one employee benefits platform sounds appealing, make sure you take it for a test drive. Check for a user-friendly design that your team will enjoy – it’ll boost adoption rates and improve your return on investment.
Richard Noble
Senior Employee Benefits Adviser
Research the reputation and track record of potential benefits providers. Look for reviews, testimonials, and industry ratings to gauge their reliability, customer satisfaction, and financial stability.
Evaluate the range of services offered by each provider and assess whether they align with the needs of your company and employees. Consider factors such as flexibility, customisation options, and scalability. Also, don’t forget to look at their service levels and check what their ongoing support is like.
With only 12% of UK workers claiming to be truly happy with their benefits, there’s never been a better time to ramp up your employee benefits strategy.
But if you’re feeling swamped, you’re not alone. It just so happens that we’ve got the solution. With our dedicated team of Drewberry specialists, your HR team will have everything they need to retain top talent and boost staff morale.
Employee benefits can be a headache. But our specialists do this day-in, day-out, offering first class service when you need it most. Here’s why you should talk to us:
