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June 2, 2024
Lyceum Insurance Services

What Is Employee Benefits Administration?

Employee benefits are essential parts of modern employment arrangements. The insurance coverage, financial incentives and wellness opportunities often included in benefits packages can be enticing and valuable additions to an employee’s direct compensation. In fact, several studies have shown that many employees may prioritize ideal benefits over higher wages and salaries.

However, while employee benefits are important and valuable, your organization must administer them appropriately to maximize their effectiveness and return on investment. With these stakes in mind, the knowledgeable team at Lyceum Insurance Services stands ready to assist with comprehensive guidance regarding employee benefits administration.

How Does Employee Benefits Administration Work? woman sitting at table

Employee benefits administration generally refers to the various processes and steps involved in overseeing and administering employee benefits. Given the many programs, opportunities and possibilities that may make up an employee benefits portfolio, the exact parameters and details of these processes can vary significantly.

Organizations often may put their human resources (HR) department in charge of employee benefits administration. Alternatively, some companies enlist a professional employer organization (PEO) as a third party entrusted with these crucial functions. Additionally, many workplaces may automate at least some of their employee benefits administration processes using various software.

What to Consider When Administering Employee Benefits

As your organization makes decisions regarding employee benefits, there are several key parts of a suitable administration process. To ensure your company is providing appropriate and valuable options to its workforce, consider the following steps:

  1. Consider compliance. Your organization may be subject to various laws, regulations and industry standards regarding employee benefits. For example, the Affordable Care Act imposes financial penalties on employers with more than 50 full-time equivalent employees if a group health insurance plan is not offered. Consult with a qualified professional, such as those at Lyceum Insurance Services, to ensure you are aware of any applicable requirements.
  2. Survey employees. One of the best ways to find out what benefits your employees value is to ask them directly. Every workforce is unique, and the demographics of your organization may play a significant role in determining ideal benefits packages. For instance, an older workforce may place greater value in matching 401(k) plan contributions, while younger workers might prefer career development opportunities or generous amounts of paid time off.
  3. Provide education. Offering ideal and compliant employee benefits may be wasted gestures unless employees understand how to best utilize these opportunities. Plan employee training and educational sessions about employer-sponsored benefits and ensure HR or PEO representatives or other resources are available to assist with any questions.
  4. Reassess regularly. Employee benefits administration is not a one-time task. As your company grows and evolves, you must commit to revisiting these processes and ensuring offerings remain desirable and competitive. In addition to changing standards and laws, your workforce and its preferences may change over time, potentially necessitating future surveys and inquiries.

We’re Here to Help

At Lyceum Insurance Services, we understand the importance of effective employee benefits administration. Contact our team of knowledgeable professionals today to learn more.

 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information. 

Categories: Employee Benefits

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