Today, one out of six employees reports staying in their current position entirely for their health benefits. This trend is particularly pronounced among workers who earn $48,000.

For employers, this type of statistic demonstrates an important point. Workers want benefits, and they prefer working for employers who have them. By selecting the right benefits and improving your approach to benefits administration, you can achieve a happier workforce, better retention, and improved talent acquisition. 

What Is Benefit Plan Administration?

At its heart, benefit plan administration refers to the way you manage and organize your company’s benefits. Often, this is done by a part of your HR department or outsourced to another company. 

One of the most important parts of your employee benefits administration is finding the right benefits and making sure that employees get the benefits they deserve. According to one survey, around 85% of employees don’t understand their benefits. It’s the job of the benefits administrator to make sure employees are educated about their options and set up to get exactly what they need. 

An employee doesn’t understand the nuances of the Employee Retirement Income Security Act (ERISA) or that the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) can even cover former spouses. It is up to the benefits administrator to know what these laws are, when the employee is eligible for benefits, and the best way to help each worker.

Employees Benefits Administration 101: Types of Benefits Administration

When setting up your employee benefits, you first need to consider which type of benefits you want to offer. Get feedback from your employees, talk to your plan administrator, and look at your budget. 

As you review your budget, you should keep in mind that there are certain benefits you’re obligated to provide. If you have 50 or more full-time or full-time equivalent (FTE) workers, you are obligated to offer health insurance under the Affordable Care Act (ACA). Similarly, your state may have mandated paid leave for your workers. 

Once you have figured out which benefits you are legally required to offer, the next step is seeing what types of additional benefits can fit into your budget. Each employee base has different needs, so get feedback as you create your new benefits plan. For example, remote workers may prefer wellness benefits that cover under-desk treadmills and fitness rewards. Alternatively, inner-city commuters may want free public transportation passes or bike parking. 

To get a head start on determining which benefits administration options you need, consider some of the following benefits. You can also check out Asure’s list of popular benefits and administration services.

Insurance 

Depending on your size and where you’re located, you may be legally required to offer health insurance. However, you may also want to consider other forms of insurance, such as dental insurance or life insurance. In recent years, pet insurance has also grown in popularity.

Retirement

Today, 57% of private-sector companies with fewer than 100 workers offer retirement benefits. In comparison, 86% of firms with over 100 employees provide retirement benefits. Employees are savvy and understand the importance of saving for the future, so many workers prioritize prospective employers that offer retirement options. 

Company Ownership 

If your company has public shares, you may be able to set up an ownership option. For example, some organizations offer employee stock ownership plans (ESOPs). You can also use vesting to improve long-term retention.

Family and Medical Leave Act (FMLA) Leave 

Every company that has at least 50 employees must offer FMLA leave. However, you may also want to offer additional paid leave, flexible scheduling, or remote options. Many of these options are very appealing to potential applicants, but they can be adopted for a fairly low cost.

Workers’ Comp

Workers’ comp requirements vary from one state to another. While many employers in Texas aren’t legally required to purchase workers’ comp, just about every company in New York is required to have it. Similarly, California requires every business that has at least one employee to get workers’ compensation coverage.

Education Assistance

If you have many young workers or are hoping to bring in talented new grads, education assistance may be a good option. This can be set up in different ways. Besides offering grants and scholarships for school, you can use SECURE Act 2.0 to help students repay their student loans while simultaneously getting matching employer contributions in their retirement plans.

Flexible Spending Accounts (FSAs)

FSAs, health reimbursement arrangements (HRAs), and health savings accounts (HSAs) have become increasingly popular among employees. An FSA allows employees to set aside money before their payroll taxes are deducted, giving them more actual take-home pay. Then, this money can be used to fund medical, dental, and vision expenses.

Why Do Companies Outsource Benefits Administration?

When you run a company, you don’t want to waste your time focusing on highly technical topics. Managing and administering your company’s benefits can be complicated, which is why it is so important to get professional help. As a Broker of Record, Asure can administer benefits, such as health insurance, COBRA, wellness benefits, and FSAs.

The following are some of the most common benefits administration services outsourced by American businesses. 

• COBRA administration
• 401(k) plan administration
• Dependent eligibility verification
• Annual open enrollment 
• FSA administration
• Administration of leaves of absence

Benefits administration isn’t just a way to attract new hires. For many benefits, there are also specific legal obligations in place. By outsourcing your benefits administration, you can save on labor costs and ensure your company is in legal compliance.

The Advantages of Outsourcing Your Benefits Administration

While every company is different, there are a few common reasons why businesses outsource their benefits administration services.

• Reduce the Administrative Burden: When you outsource employee benefits administration to someone else, it allows you to save on labor costs.
• Ensure Compliance: There are many compliance regulations involved in providing benefits, so it makes sense to outsource these services to a team that devotes all of its time to benefits administration.
• Access Better Features: When you work with a benefits administrator, you can often access better features. For example, Asure offers the Asure Prepaid Benefits Card, so employers can easily boost plan participation. Employees also benefit by getting an easy way to track and use their FSA or HSA funds. 
• Lower Costs: For many businesses, outsourcing employee benefits administration is an effective way to save money on labor costs.
• Ability To Focus on Your Core Business: By outsourcing your benefits administration, you can have more time to focus on strategic issues and your core business. 
• Receive Additional Knowledge: An experienced benefits administrator knows all of the laws and requirements involved in offering each type of benefit. This means you can get expert help instead of learning about and creating these programs from scratch.

Learn More About Benefits Administration for Small Businesses

Today, there is a war for talented workers. Providing comprehensive, desirable benefits can help you compete against other companies. By partnering with a benefits administrator, you can provide top-notch benefits without having to do any of the legwork yourself. 

At Asure Software, we can handle all of your employee benefits administration needs. Learn more about our services by contacting our payroll and HR experts today.