September 1, 2020

While benefits administration is an important function in any business, keeping up with all the requirements can be overwhelming. Mountains of paperwork, tedious manual entries and countless rapidly changing legal demands are just a few of the challenges.


At some point, outsourcing benefits administration might be the best solution for your company. By outsourcing these administrative tasks, you can free up company resources and allow your employees to focus on other areas.

To determine if outsourcing is the best decision for your company, ask the following questions:

  1. How much time are you spending on administrative tasks?

If you are spending only two to five hours a week on administrative work, it might be worthwhile to continue doing the work in house. However, if you are spending over 10 hours a week on such tasks, it might be time to streamline your operations by letting an experienced partner do the work for you.

  1. What is your ratio of employees to HR personnel?

If you are a small business owner and have only a few employees, benefits administration might be worth handling yourself. In any size business, the more employees involved, the more complex administrative work becomes. Making sure you have the staff in place to support benefits administration is essential.

  1. Do you have frequent turnover and/or variable-hour employees?

Between new hire paperwork and scheduling changes, keeping everything running smoothly can be a tough job. Common mistakes such as missed premium deductions can cost your company a lot of money. Often, it is much more economical for an experienced partner to manage your benefits administration needs.

  1. Would your company be better served by other initiatives?

Good health and wellness programs are key to a company’s well-being. When HR is bogged down with benefits administration tasks, very little time remains to start wellness initiatives, connect with employees and run other beneficial programs.

  1. Has your company incurred penalties or costs from data errors?

The legal side of HIPAA and ACA compliance can be difficult to navigate. In addition to penalties, data errors require a lot of time and money to find and resolve. Even if data errors are occasional events, your company could be losing thousands of dollars.

Depending on your answers to these questions, it might be time for you to consider outsourcing your benefits administration. At BenefitElect, we have created a FREE Benefit Technology Toolkit to help you evaluate your current systems and benefits administration needs as well as explore valuable solutions. Click this link to download.