Your employees are your most valuable asset – and attracting and retaining top talent can be a challenge in today’s job market. Often, benefits are what make the difference. According to recent research:
- Sixty-six percent of workers are open to new job opportunities, as long as the pay and benefits are better.
- Approximately 58 percent of millennials, who now dominate the market, are expected to leave their jobs within three years or less.
- Fifty-six percent of employees say they would trade a salary increase for better benefits.
The Advantages of Outsourcing
Employee benefits – and the administrative tasks that go along with them – are essential. But, they’re not profit centers for your company. Done well, they enhance your employer brand image. But they eat up time, energy, and staff resources that could be better spent on revenue-driving activities.
For an increasing number of small to mid-sized businesses, the solution is outsourcing. The advantages include:
- Group buying power: If you opt to work with a professional employer organization (PEO), you gain access to their group buying power. You can use this economy of scale to offer more and better benefits, as PEOs pool their clients’ employees. In doing so, they enable them to deliver packages comparable to those provided by much larger companies.
- Specialized expertise and technology: By outsourcing benefits services, you benefit – from the knowledge and resources of a team of experts who focus solely on these issues. This includes affordable access to the latest HR technology and tools, so you don’t have to add this expense to your company balance sheet. Your outsource partner should have long-standing relationships with all types of HR vendors. In essence, you get one-stop shopping for all your benefits management needs.
- Risk reduction: The ongoing costs of a comprehensive, compliant benefits program can be enough to put your company out of business, especially if you’re hit with a penalty, grievance, or lawsuit. The right outsource partner can offer you unparalleled expertise when it comes to the risk reduction associated with a full range of compliance matters, as well as safety and security in all areas of your business.
Benefits services that you may want to consider outsourcing include:
- ACA compliance and reporting.
- Benefits plan negotiation.
- Open enrollment administration.
- Medical, dental, and vision plan or supplementary and voluntary benefits management.
- Section 125 and flexible savings accounts.
- Retirement plan options.
- Premium reconciliation and payment.
- COBRA, HIPAA and ERISA compliance assistance.
Consider a PEO Partnership
A PEO serves as a seamless extension of your business, taking over the legwork and relieving you of the myriad time-consuming tasks associated with top-notch benefits administration. To learn more about how such a partnership could work for your growing company, contact Lyons HR today.