After years of hard work, your business is finally taking off — and fast. Your client list is growing like wildfire, your reach is expanding, and your team is hiring. By any calculation, that’s a good problem for a business owner to have. At the same time, however, a quick increase in demand can lead to growing pains and stretched employees who find themselves buried under more work than what they originally signed on to handle.
Can you take some of the load off both your team and your budget by outsourcing some aspects of your operation, such as employee benefits administration? In a word, yes. But we understand that this isn’t an easy choice for any organization.
If you’re considering partnering with a third-party expert to outsource one or more of your HR operations, here are some things to consider:
1. Review Your Benefits Administration Contract Carefully
The two biggest business expenses are payroll and employee benefits, which includes more than just the cost of insurance coverage. This includes management hours, software programs and all the administrative tasks necessary to keep things running smoothly. While the workload may not be a factor for a business with only a few employees, it can quickly overwhelm both the human resources and accounting staff as a business grows.
If you’re considering working with an employee benefits administration provider, the best ones are able to provide a range of solutions. Some organizations are only seeking a new software solution and others are looking for a full-service provider who can manage everything. Benefits administration services are typically priced as a percentage per employee, but be sure to read the entire contract. Some providers may try to include some hidden fees, especially when services are bundled.
2. HR Tech that is Secure & User Friendly
More and more companies are investing in their HR technology these days and for good reason. In today’s digital society, running a business effectively typically involves cross functional teams working collaboratively from a variety of locations. The costs required to use and maintain this technology are significant.
By outsourcing your employee benefits administration, you’ll get access to robust HR technology and a dedicated team of IT professionals who can help manage related workflows and troubleshoot issues.
In 2020, you should only hire an HR outsourcing partner with advanced technology that is user-friendly and secure.
3. Find a Provider With Expertise in Your Industry
The IT gurus aren’t the only experts who come with outsourcing employee benefits administration. The right provider also has expertise in specific areas of benefits and HR-related business strategies. And if your in-house HR team either lacks that focus — or lacks the time to learn it — bringing in an outside expert can help ease that burden. Imagine entering into a business partnership where the team is highly experienced, has an efficient administration process in place, and is ready to make an impact on Day 1.
Finding an HR outsourcing provider with human resources expertise shouldn’t be too challenging, but we challenge you to go a step further. Your benefits administration provider should also have experience with other businesses in your specific industry. A mid-sized outsourcing company, for example, might better understand the needs and demands of your mid-sized business. An account lead with previous HR experience for your industry can be a very valuable partner.
4. Employee Benefits Administration Can Help Your HR Team Refocus
Although more of it may be handled digitally, human resource teams must deal with a significant amount of paperwork. This is where significant issues arise if a small HR team is expected to keep up with the demands of a growing business. Your employees can quickly find themselves drowning in a never ending deluge of essential admin tasks. From recruitment strategies and hiring, to onboarding new hires and filing separation paperwork, these are all extremely important tasks. Oversights here can create huge problems for your business just as your poised for unprecedented success.
Outsourcing employee benefits administration or other aspects of your HR team’s growing workload can help the department get back to its core focus — advocating for employees or focusing on long-term strategic planning, for example.
5. Ensure Your Business Stays Compliant
Is your company up to date on regulatory compliance requirements and new or updated laws? Are you sure? Most businesses are required to operate via certain industry standards and government regulations regarding privacy, data protection and confidentiality, and some are subject to even more. If you’re in a business where the rules seem to be constantly changing, falling behind can find you in violation of the law.
This is an issue we see crop up even more often when a company starts to see significant growth. Passing the 50-employee milestone, for example, triggers regulations around the Family Medical Leave Act (FMLA) and the Affordable Care Act (ACA). The business may also be subject to different payroll tax laws and regulations for people management.
While choosing to outsource employee benefits administration can provide relief for an overworked HR team, there are some drawbacks that your organization should consider beforehand. It’s important to take your time, do your homework, and find an HR outsourcing partner that really fits with your organization.
At Corban OneSource, we specialize in providing employee benefits administration for organizations just like yours. If you’d like to learn more about what we can do for your company, you can request a free discovery call. It would be our pleasure to show you how we invest time getting to know each of our clients and the specific needs of their organizations. We don’t believe in a one-size-fits-all solution. Corban Onesource provides a comprehensive range of solutions that can be customized to meet your unique needs.