Is There a Service to Outsource Employee Benefits?
Employee benefits are a necessary component of any modern workforce’s compensation package.
They encompass a wide range of offerings, from healthcare and retirement plans to wellness programs and more. While these benefits are essential for attracting and retaining talent, setting them up and managing them requires resources that you might not have available in your organization.
This leads us to the question: Is there a service to outsource employee benefits?
The quick answer is “Yes!”
There are many services that provide employee benefits outsourcing. Here at Finvisor, we do just that. Our specialty is providing financial and HR services to startups and small businesses – the types of organizations that are least likely to have these professional roles hired in-house.
Now we have answered the burning question, let’s take a deeper look into what employee benefit outsourcing is, and why it can be hugely beneficial for your business.
The Rise of Employee Benefits Outsourcing
The concept of outsourcing employee benefits has been around for decades, but it has gained prominence in recent years due to the growing complexity of benefit plans and the increased need for expertise in compliance and administration.
Additionally, young businesses have realized that outsourcing financial and HR functions saves them a ton of money and removes the costly and time-consuming requirement to hire someone in-house.
Several other factors drive organizations to consider outsourcing their employee benefits, including access to specialized expertise, and the desire to enhance the overall employee experience.
What is Employee Benefits Outsourcing, exactly?
Employee benefits outsourcing involves delegating the administration and management of employee benefits to third-party service providers. Rather than hire an individual onto your business’s payroll, you instead hire an individual from a third party, typically on a rolling contract basis.
This means you only pay for the level of service you need which you can scale up or down as required.
At Finvisor, we can set up, manage, and administer the following employee benefits:
- Health Insurance
- 401k or Simple IRA
- Dental Insurance
- Life Insurance
- Vision Insurance
- Short Term Disability
- HSA / HRA
- Commuter Benefits
- Long Term Disability
- FSA Medical Reimbursement
- FSA Medical Accounts
- FSA Dependent Care
Benefits of Outsourcing Employee Benefits
We’ve already touched on the benefits of outsourcing this important business function, but let’s take a closer look at why a business should do it.
Cost savings
Outsourcing can lead to significant cost reductions. Recruitment, a full-time salary and benefits, office space, and equipment all cost a lot of money but with outsourcing, you don’t have to worry about any of that.
Furthermore, since you only pay for the time and resources required, you’re not going to be spending over the odds for something you don’t actually need.
Expertise and Compliance
We’re betting that you didn’t start your business to become an expert in payroll and employee benefits. And really, you should be expected to. But the truth is, many business owners tend to try and take on the role themselves.
This easily leads down the path of non-compliance, mistakes, and employee discontentment when something goes wrong.
An outsourced employee benefits specialist will be well-versed and experienced in the intricacies of employee benefits processes and regulations, ensuring compliance and reducing legal risks and mistakes from occurring.
Enhanced Employee Experience and Retention
By outsourcing your employee benefits function, you can ensure the benefits package you are providing remains competitive in your business niche.
Not only will this help you secure top talent, but it will also help you retain it.
If your employees are happy and satisfied with their compensation, they will remain motivated and productive, which is exactly what you need for your business to become successful.
Focus on Core Business Activities
If you’re spending all your time dealing with employee benefits, who is at the helm of your business moving it forward?
While you’re probably a great multi-tasker, you also have to be realistic. You can’t spend all your time juggling all the various business functions. Your time should be spent focusing on the core business activities and doing what’s necessary to make it a success.
Outsourcing is the remedy to this issue and frees up your time to spend on what you excel at.
Challenges and Considerations
Protecting sensitive employee data is a top concern when outsourcing benefits, so it’s natural to want to understand how outsourcing will keep data secure.
Finvisor takes this incredibly seriously. We use specialized cloud-based software that keeps all data safe and away from prying eyes while still allowing your benefits administrator and you to view and manage it.
Many of our clients are also concerned about communication. After all, if your benefits administrator works remotely, it’s not like you can pop over to their desk for a chat.
Many of Finvisor’s clients love to communicate via Slack. This is a secure and private instant messaging service that is hugely popular among businesses of all sizes.
If Slack doesn’t work for you, then we can find a method of communication that does.
Choose Finvisor for Benefits Outsourcing
In conclusion, outsourcing employee benefits is a viable option for startups and young businesses seeking to streamline operations, reduce costs, and enhance their employees’ experience.
As technology continues to evolve and employee expectations change, this trend is likely to gain even more traction in the future and outsourcing employee benefits will become the norm.
By carefully assessing employee needs and working with our team at Finvisor, you can navigate the complex landscape of employee benefits outsourcing successfully.
Excited to see how the wonderful world of outsourcing can work for your organization? Finvisor is welcoming you to get in touch.
We offer everything a startup; young or small business needs to keep it running smoothly. From accounting, bookkeeping, and payroll to CFO advisory services, HR, employee benefits, and more, Finvisor is your trusted go-to for business outsourcing.
*This blog does not constitute solicitation or provision of legal advice and does not establish an attorney-client relationship. This blog should not be used as a substitute for obtaining legal advice from an attorney licensed or authorized to practice in your jurisdiction.*
- Last Modified
- December 21, 2023
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