Employee Benefit Processing Services
As job markets get tougher and the required qualifications go higher and higher, companies are also finding it harder to find, hire, and keep their workforce. This is where employee benefits can make a huge difference. In addition to brand name and corporate culture being incentives against employee turnover, these benefits above and beyond basic salary packages that keep best of the employees loyal. It is not just a matter of finding appropriate employees, but also the training that goes into making qualified employees to experienced employees and if they lose there is a considerable monetary cost attached to it as well.
Employee benefit processing services is then the set of procedures that go into deciding the different benefits for different ranks of employees. There is a financial cost with time and effort costs that go into the process.
Types of Employee Benefits
Depending on your company and the demography of your workforce there is whole range of benefits you can include in your employee benefits package. The most common ones may include maternity and paternity benefits, health and dental insurance, pension plans, discounts on key brands and savings plans. Some employee benefits, such as health insurance, are legally required for bigger companies. But other benefits, such as a set number of paid sick leaves, daycare or fitness plans, are companies’ own choice.
How to set up a benefits plan for your employees?
There are five simple steps in the process of setting up a benefits package. Step one is to decide your budget that you are willing and able to put aside for benefits. Step two is to decide what benefits to offer to your workforce. The beauty of this is that you can have whatever you wish to treat your employees with, with the flipside that they all cost a lot of extra money. You can choose a mix of several benefits too if you may wish and are able to afford. Research says that employees’ most preferred benefits include health benefits, 401k and paid leaves. There are other one-time benefits that may cost much lesser, such as company t-shirts, food parties, birthday presents etc. Step three is to choose the best provider or an outsourcing partner that you want to take on board for these benefits. Step five is to keep track of the benefits you are providing and gauge employees’ happiness and satisfaction.
Advantages and Disadvantages of Employee Benefits
Let’s get done with disadvantages first because there is just one – high cost. The good news is that there are outsourcing companies that can ease the process for you. The additional inconveniences of planning and executing are also assumed by outsourcing companies making the benefits the only thing for you to gain from including these benefits.
The advantages begin from the obvious improvement in employees’ motivation and loyalty to your company. The provision of benefits also make them more sincere to their work, and if there are higher benefits with higher pay also keeps them geared towards working harder for promotion. Second benefit is the direct reduction on pressures in the HR department. When employee turnover is lower and employees are happy, the HR department has to find fewer new employees and training them, and also have to spend less time listening and addressing complaints. Higher efficiency and productivity are also given.
Added Benefits of Outsourcing Employee Benefits Services
You can have employee benefits management in-house and you will get the benefits mentioned above but will lose out on the additional perks that an outsourcing partner comes on board. Let’s start with reduced risk liability. With employee benefits being taken care of by an external partner, you can distance yourself from the accountability of fairness and equality. This means that your employees cannot have grievances with higher management.
Higher flexibility is another benefit that you can gain from taking on board an outsourcing company. When businesses grow, all segments need proper management to maintain harmony in business operations. Even in times of down cycles, contraction demands equally flexible operations. This is where keeping everything in-house becomes problematic and more cumbersome. An external company taking care of your non-core tasks such as employee benefits makes it far easier for businesses to plan their growth cycles and to act on them.
The tiniest challenge may also come from having to choose the outsourcing partner in the first place. There has to be coordination and smooth communication, but no problem that cannot be solved with proper communication at the time of signing the contract.