The total cost of labor doesn’t stop with cash compensation- a substantial added cost includes the cost of benefits. As benefit plans continue to increase in cost, the legislative costs associated with benefit plans add to the total cost of providing much needed benefits for employees.
Employers want to be competitive in the marketplace with perquisites provided to employees. The range of benefit plans- and the administration associated with providing these benefits- continue to increase in cost. Add to the increased cost, the added legislation and the need to stay current and compliant with these regulations add to the need for professional capability in delivering the required administration. Many companies will use outside vendors to not only provide the needed administration, but also to enable compliance with existing regulation.
Benefit plans that are offered typically include:
- Health benefits
- Dental coverage
- Vision insurance
- Income security (life, AD&D, salary continuance)
- Defined contribution plans
- Defined benefit plans
- Savings Plans
- Employee Assistance Plans
- Employee Service Center
- Benefit enrollment capabilities (annual and new hire)
Each of the benefits listed above involve administrative requirements for employee deductions, reporting, compliance and employee communication- and most frequently, employers will select an outsourcer to provide the needed administration, communication and compliance services.
This demands the identification of a provider that meets all the requirements mentioned above. Finding such a provider demands careful design of a scope of work, plan designs, processes to complete the work, service level agreements and alignment of delivery to the demands of the client. iTeres can help companies who outsource benefit administration to insure that the needs of the company and its employees are met.
If you have issues with your current provider, or are considering outsourcing of benefit administration, we can help you achieve your goals around benefit administration.