Employees usually don’t think about how they receive their benefits. They simply sign up, visit in-network providers, take advantage of different employee perks and pay what they owe for monthly premiums and out-of-pocket expenses.

But, there’s a lot that goes on in the background that makes all of that work perfectly. While a lot of that “work” is done by the insurance companies providing the coverage — for example, processing claims and deciding who’s responsible for what amounts — a significant amount is also handled by the company’s benefits administrator.

At most companies, the duty of administering benefits falls in the hands of Human Resources. Some companies don’t have the time, the interest, the know-how or the expertise to handle this in-house, so they outsource it to an employee benefits broker.

Below, we discuss all that goes into benefits administration, and how hiring experts to work for you can be to your advantage.

What Does Benefits Administration Entail?

There’s a lot that falls under the purview of benefits administration.

In addition to health insurance plans, the person or department responsible for overseeing benefits in your company might also be responsible for retirement accounts, stock options, vacations, paid time off, parental leave, financial education, employee perks and company policies — among many other things.

The benefits administrator essentially serves as the go-between for employees and service providers. They must be knowledgeable about what the company is offering so they can answer any questions employees have — or know who to refer them to.

They also must have a good working relationship with the service providers such as health insurance carriers to ensure that all coverage is being done properly.

It’s a big job, for sure, and one that holds significant importance.

Why is Benefits Administration Crucial?

Today, if you want your business to stand out, you must offer a comprehensive benefits package that impresses current and prospective employees. This is an essential aspect of attracting new employees and retaining current ones.

Various surveys have found that employees much prefer a better benefits package than a higher salary, which speaks to just how important benefits — and, as a result, benefits administration — really is.

Of course, the key to an attractive benefits package isn’t just providing an impressive list of perks, but also making it easy for employees to use — at a price that’s as affordable as possible.

In essence, benefits administration is about helping employees increase their quality of life, by helping them with personal finances, physical and mental health, and establishing a work-life balance.

Without a good benefits administration team in place, your benefits package won’t be able to serve your employees well.

Common Challenges in Benefits Administration

So, what are some of the common challenges that benefits administrators often face?

Perhaps the biggest challenge is compliance. There are many laws that set specific requirements on companies when it comes to employee benefits, and those laws seem to change quite often.

Understanding what the applicable laws are to your company — based on its location and size, for instance — can be tough. But, if your company is ever out of compliance, you could face big financial fines and, in some cases, legal repercussions.

Administering benefits creates an enormous burden on the HR team as well. It takes a lot of organization and tracking to ensure that your company is adhering to all local, state and federal laws.

There’s also a lot of administrative work that goes into preparing benefits package information, holding meetings to inform employees of details and changes, signing employees up, asking questions, ensuring enrollments are secured and much, much more.

While some companies can handle all of this work without a problem, it makes sense for many to outsource this work to a company that’s experienced in this realm. Doing so also frees up time from your HR department so they can focus on other initiatives rather than handling so much manual administrative work.

Streamline Benefits Administration with Beckham Ellis Insurance Group

For many employers, it pays to work with an experienced benefits administration company such as Beckham Ellis Insurance Group, rather than trying to handle it with the in-house HR department.

There’s a lot that goes into benefits administration, and it’s so important that you can’t afford to get anything wrong.

If your company is located in the South Carolina or Georgia region, contact us today to learn how we can help you.