For just about any business, employee benefits are a huge expense. In fact, according to the US Department of Labor, most businesses are spending at least 30% of their payroll on benefits — and that’s a number most businesses want to reduce however they can. Unfortunately, many look towards cutting benefits, but that’s a poor long-term strategy. Reducing benefits can lead to the loss of experienced workers, and a shallow hiring pool, creating more problems rather than solutions.
However, there is an alternative: employee benefit services. An off-site specialist can streamline your benefits system, saving your company substantial money in the long run and without sacrificing the quality of your benefits package.
Three Ways Off-Site Employee Benefits Administration Improves Your Bottom Line
1 — More options in benefits packages
A dedicated employee benefits broker is going to have access to most or all of the major providers across the country, and that gives them superior ability to create custom-made packages. In some cases, it’s even possible to improve the overall quality of benefits, while still lowering costs. Additionally, the larger brokers can also leverage economies of scale to bring you further cost savings you could not possibly achieve as a single business entity.
2 — Better data for decision-making
The data for benchmarking almost any benefits plan is out there, but not everyone knows how to access it — and even fewer can interpret the data. A qualified employee benefits consultant, however, is someone who can. They can put together easily-understood data sets and improve the decision-making processes within your business.
3 — Improving regulatory compliance
As insurance and benefits regulations become ever more complicated, it becomes easier for a business to unknowingly fall out of compliance with the law. Even a single violation can be a substantial financial blow. In this way, hiring outside experts becomes a form of insurance — but one which almost immediately pays for itself through avoided problems.
Cut Your Benefits Costs with Arrow Benefits Group