Outsourcing isn’t the taboo subject it once was. There are, understandably, people who will think of redundancies and work moving offshore but, for many modern businesses constantly searching for flexibility and cost efficiencies, shifting duties to third parties can be a smart way to reduce your company’s investment in an area while boosting its effectiveness. Outsourcing employee benefits is one such area that can always bring improvements and savings, as long as it’s done intelligently.
In this post we take a look at the top 5 advantages of outsourcing your employee benefits management.
Outsourcing employee benefits management to a broker or intermediary
Balancing the need to be well supported in your C&B plan with keeping the costs of securing that expertise low is where outsourcing employee benefits management comes in. Your company engages the services of a broker or other intermediary who works with your business to put the right benefits package in place then acts on your behalf when it comes to handling issues or negotiating renewals. Here are the five key ways businesses are at an advantage with this solution:
- Cost savings
A major upside to outsourcing employee benefits is that it can save your business money. While some brokers can charge extra fees for providing benefits services such as staff orientations or market benchmarking, some can offer you a total support package that’s included in the commission they’re paid from the benefits provider. Companies will still need to crunch the numbers to make certain they’re better off but handing off administration and management responsibilities to an intermediary can save you staff and training costs.
- Reduced impact on general HR
The second significant factor to outsourcing your benefits is related to the time HR staff can save by not having to directly deal with employee benefits matters. Getting third-party support for staff orientations and inquiries benefits communication, claims processing, and dispute resolution allows your HR experts to focus on more important things like supporting the growth and success of your business.
- Shielding liability
Reducing the risk of liability by placing the responsibility of employee benefits management with an outsourced company can be an intelligent step for businesses. It places the decision-making at arm’s length, offering a level of fairness and equality to the way the benefits are run from both staff and company perspectives. Such a relationship can also protect the company from liability where mistakes are made – the burden then lies with the outsourced company.
- Boosting efficiency
With the engagement of an expert specialist when outsourcing employee benefits, your company will benefit from their market knowledge, renewals intelligence, and a range of other sector-specific experience that can take HR staff years to accumulate. Hiring an in-house expert can will result in you paying them a decent salary, especially where renewals only happen annually, so utilizing the specialists of an outsourced company can be a more efficient way of management. In addition, these experts can use all of their industry knowledge to put you in the driver’s seat when it comes to dealing with your benefits provider.
- Flexibility as your company grows
Not all businesses start out as they end. Not just in size, many companies may change their focus and goals over time – and your benefits platform should always reflect and support what you’re trying to achieve. Outsourcing your employee benefits to a third party means having the support to make changes that are necessary to ensure that your plan not only remains successful but sustainable in the long term.
Finding the right partner for outsourcing employee benefits management in Africa
At Africa HR Solutions, we are committed to enhancing the work experience and supporting your employees working across the African continent. We understand the complexities behind the delivery of top-notch employee benefits and we offer a service solution that’s flexible to your business model and goals – both now and into the future.