Should You Outsource Your Employee Benefits?

The Advantages Of Outsourcing Your Employee Benefits

Is employee benefits outsourcing really worth it? Obviously, as employee benefits experts, we think so. But here’s a more detailed explanation for why outsourcing could be the right thing for your business.

1. Save Time

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:

• chasing email trails
• getting employee forms signed
• juggling different suppliers
• handling benefits renewals
• adding family members to insurance policies
• tweaking Workplace Pension contributions and other benefits administration.

Managing employee benefits in-house takes time away from the more strategic projects that your HR team could be focusing on.

2. Save Money

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 experts 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

3. Get Access To Expertise

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:

• Navigating complex rules
• Ensuring policies have the best terms
• Negotiating with insurance providers on your behalf
• Creating great benefits packages tailored to your team’s unique needs
• General day to day benefits management.

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.

4. Avoid Compliance Issues

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 an expert at your side, offering an extra layer of protection, providing valuable support and peace of mind when you need it most.

5. Learn What Employees Really Want

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.

6. Enjoy The Latest Tech

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.

My.Drewberry Employee Benefits Platform

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.

7. More Time For What Matters

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.

8. Better Privacy For Employees

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.

Potential Issues With Outsourcing Benefits (And How To Avoid Them)

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:

Transition Issues

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.

Communication Issues

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.

Changing And Growing Needs

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.

Cost Escalation

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

How To Choose The Right Benefits Provider

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:

Think About What You Need

First of all it’s important to think about what you need. Ask yourself the following:

• Do you want to save time and free up internal resources?
• Do you want your team to have a clearer understanding of what their total reward package is worth?
• Do you just feel confused by your options, and want the experts to take care of it?

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 Pricing

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.

Check Their Tech

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:

• Automating the process of adding new joiners and leavers
• Implementing Total Reward
• Keeping data clean and up to date
• Managing all benefits in one central location.

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

Check Their Reputation

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.

Look At Their Range Of Services

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.

Make Employee Benefits A Breeze With Drewberry

With 25% of UK workers being unhappy 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 experts, your HR team will have everything they need to retain top talent and boost staff morale.

Why Speak to Us?

We started Drewberry™ because we were tired of being treated like a number.

We all deserve a first class service when it comes to things as important as protecting our health and our finances. Below are just a few reasons why it makes sense to talk to us.

• We are award winning 🏆 independent insurance advisers who work with all the leading UK insurers
• You’ll speak to a dedicated expert from start to finish
• We are very proud of the 3768 and growing independent client reviews rating us at 4.92 / 5
• We are authorised and regulated by the Financial Conduct Authority. You can find us on the financial services register here 🧐
• Claims support when you need it most.