Small business owners have to juggle countless priorities. From growing the business to hiring the right team members, different but equally important priorities are constantly pulling you in many directions.
One of the biggest challenges for small businesses is providing employees with health benefits. And it’s important for small businesses to take this seriously — health benefits are the top requested benefit among employees.
For many small and mid-sized businesses, however, the prospect of providing health benefits is anxiety-inducing because the costs to do so are often so high, not to mention that administering these benefits in San Jose can be quite complex. But with HR outsourcing, your company may be able to provide the high-quality benefits your employees seek at costs you can afford.
Which employee benefits can be outsourced?
Employee benefits run the gamut from retirement and healthcare to time off and paid holidays. Your employee benefits package is limited only by your creativity.
It’s also a good idea to know what your competitors are offering their employees. By understanding the benefits provided by your competitors, you can offer a better and more comprehensive benefits package, creating a competitive advantage for your business.
The most common outsourced employee benefits include:
- Health insurance selection
- Health benefits administration
- Retirement benefits
- Employee assistance programs
- Flexible spending accounts
- Wellness programs
Why do companies outsource health benefits administration?
Finding affordable healthcare plans that offer even decent coverage is extremely challenging for small businesses. Insurance providers look to minimize their risk. It’s hard for them to do that when they are insuring just a few employees, so they raise their rates.
Finding and negotiating good and cost-effective coverage takes your time and focus away from revenue-generating work. When a small business can outsource this type of activity, it frees up not only your time but your internal team’s time to focus on your core business needs.
Should your business be partnering with a PEO? Learn more!
What are the advantages?
The advantages of outsourcing your company’s health benefits administration are plenty. Outsourcing your company’s benefits administration gives you access to more affordable benefits that offer better coverage.
Expertise
You are not expected to have expertise in every area of your business. You may have a more successful small business by outsourcing certain services to experts, like benefits administration. With the right partner, you gain access to HR experts, specializing in benefits administration for San Jose companies like yours.
Save Time
Dealing with employee benefits providers and insurance companies takes a great deal of time and effort on your part. From selecting plans to managing open enrollment, a benefits outsourcing provider will handle your employees’ every need.
Cost-Effective
Healthcare costs rise year after year. You have to budget for these increases but with an outsourcing provider, you may be able to have more control over these costs. An outsourced health benefits provider in San Jose can get you more bang for your buck through their long-term relationships and strong negotiating skills. Certain providers may even have the ability to negotiate at scale, giving you Fortune 500 benefits at affordable rates.
Enhanced Benefits
Your outsourcing benefits partner has access to more benefits than you do alone. These include benefits from top providers that include health insurance, short-term disability, retirement options, and much more. Through these relationships, you can provide your employees with a competitive benefits package that helps you attract and retain top talent.
Liability Protection
Benefits administration requires intense knowledge of laws and regulations. Without that expert advice, you risk costly and embarrassing government fines and employee lawsuits. An outsourcing benefits provider in San Jose has compliance experts on staff to help you navigate these complexities.
Have Questions? Let’s Talk
What are the limitations?
You may face some challenges with an outsourced benefits provider. Explore these challenges and address them with your team.
Communication Challenges
When choosing a provider, you want to know several things:
- Will you have a dedicated specialist?
- Will employees have access to a specialist to ask confidential questions?
- How quickly can you get answers?
Benefits administration includes much more than just getting healthcare for you. Your provider should be able to provide you with adequate resources to keep you and your employees happy with the service.
Evolving Needs
Over time, your company’s needs and your employees’ needs will change. You need to know that your provider can change with you. From handling out-of-state employees to different classifications of employees, some of whom might not be eligible for all benefits, you need a provider that can grow with you.
Trust
A benefits provider will handle lots of complex tasks for your company, some of which are highly regulated and, if mistakes are made, could get your business into trouble. You need to trust that your partner has experts on staff to handle HR tasks accurately and efficiently.
A PEO Could Be the Answer to Your Outsourcing Needs
A Professional Employer Organization (PEO) can overcome all of these limitations. Choosing the right PEO for your business will require that you know your goals. Your PEO should be able to provide your San Jose small business with expert HR support, tailored service, customized solutions, and personal communication. Contact Execustaff HR today to find out more about the benefits administration support you can receive.
