Leading businesses know the importance of offering comprehensive benefits to attract top candidates and retain quality employees. However, managing employee benefits can be complicated, especially without the help of a qualified consultant.
Employee benefits consulting services generally entail creating, overseeing, and updating business benefits packages.
Let’s explore some of the complexities involved in benefits management and learn how simplifying it through consulting can aid a business’s success.
The Growing Complexity of Benefits Management
Employers nationwide feel overwhelmed with the increased complexity of managing employee benefits.
From changing carriers and installing new coverages to employee enrollment and communication, managing the various aspects of benefits can be time-consuming and often requires specialized expertise in designing and executing benefits plans.
These are among the reasons many companies outsource their benefits management administration.
Evolution of Employee Benefits and the Expanding Array of Options Available
To stay competitive, businesses are expanding their employee benefits to include benefits outside of the usual medical coverage, life insurance, retirement planning, and paid time off (PTO).
With the surge of new and improved benefits, such as hybrid work environments and mental health services, employees face greater complexities in managing their diverse benefits.
Challenges Faced by Organizations Managing Diverse Benefits Offerings
Modern employees want access to a greater range of benefits without any hassles. However, designing and executing employee benefits packages does not come without struggles.
One of the biggest challenges faced by employers deals with compliance and regulation. Changing federal, state, and local laws and industry-specific standards force employers to comply or face costly audits or penalties.
Balancing costs and budgets when offering competitive benefits is also a complex issue. It’s important to consider the direct and indirect costs of employee benefits, such as co-pays, deductibles, taxes, premiums, and administration.
Simplifying Benefits Management Through Consulting
Simplifying benefits management can maximize efficiency and ensure your workforce has a smooth benefits experience. The first step is finding the right benefits consultant.
Strong consultants are prepared to provide guidance and expertise. They should be extensions to your existing HR department to help automate and streamline various benefits administration tasks.
Compliance and Regulatory Guidance
Health plans and other employee benefits programs are heavily regulated. To avoid hefty fines, potential litigation, and other consequences, employers must maintain compliance. Benefits compliance services can help ensure that businesses keep up with ever-changing regulations.
Examples of areas that require compliance and are subject to change include:
- Affordable Care Act (ACA)
- Consolidated Omnibus Budget Reconciliation Act (COBRA)
- Family and Medical Leave Act (FMLA)
- Employment Retirement Income Security Act (ERISA)
- Health Insurance Portability and Accountability Act (HIPAA)
Employee Education and Communication Strategies
Simplifying benefits management should also involve prioritizing employee education and communication strategies. Optimized benefits administration systems prepare employees to navigate them effectively.
Prioritizing employee education and communication also helps reduce employee questions about benefits. It reduces issues your HR department may face during open enrollment.
An experienced benefits consultant can assist with developing and executing employee communication strategies that involve connecting with workers throughout the year and not just at enrollment time.
Continuous Evaluation of Employee Benefits
The continuous evaluation of employee benefits helps ensure that the plan remains cost-effective without compromising the quality of benefits for employees.
With assistance from a benefits consultant, businesses can accurately identify their key needs and see how they align with their budget.
In addition, a consultant can help you better understand your legal obligations, which may impact your decisions going forward.
Adapting to New Trends in Benefits Management
To stay competitive, employers must keep up with the newest trends in benefits management. Working with a knowledgeable benefits consultant can help businesses stay on top of trends and keep their employees healthy, happy, and productive.
Some of the effective new trends in benefits management involve technology. Employees want access to digital tools to enroll in benefits and get personalized information.
They also want greater data transparency to help improve their decision-making and encourage faster problem resolution.
Evaluating Benefits Effectiveness on Employee Satisfaction
Several factors must be considered to measure the effectiveness of the company’s benefits policy and determine if a benefits package is truly cost-efficient.
Benefits consultants can perform a detailed evaluation that examines the utilization rate, cost per employee, turnover rate, business outcomes, and overall employee satisfaction.
Simplify Your Employee Benefits with New City Consulting
Managing employee benefits plans involves more than just offering benefits and perks to employees. For many HR professionals, dealing with the complexities of benefits administration can be overwhelming.
Fortunately, the consultants at New City are here to help simplify benefits management through comprehensive employee benefits consulting services.
To learn more or to get started, contact New City Insurance today at 888.210.2765.