More and more companies are starting to outsource compensation packages, instead of tasking their own human resources departments with handling them. This is especially helpful in smaller businesses, where the human resources department may consist of just one person. While this option has been around for a few years now, many business managers and owners are unfamiliar with the advantages of hiring an outside company.
Signing Up for Benefits is Easier
There are many duties assigned to most human resources departments, so they may not be as up to date on changes as a professional compensation consulting firm. Often, mistakes are made in enrollments, because employees don’t understand all of their options. This is especially true in regard to health insurance, which is continuously changing. Outsourcing to a compensation consultant can ensure your employees are communicating with someone fully educated in the most recent laws that affect their benefits. This helps everyone make the right choices without tying up your own human resources personnel.
Providing a Greater Level of Privacy
Many employees and even managers feel uncomfortable discussing their personal health needs and interest in other benefits in the workplace. Even participation in a COLI (corporate-owned life insurance) plan can lead to discussions employees would rather not have with an employer’s staff. By outsourcing to a professionally trained compensation consultant, you can ensure your employees will have a greater degree of privacy. This will encourage them to ask the delicate questions that can help them make better decisions.
Higher Degree of Service
Even if your company has a fully staffed human resources department, they likely have a wide range of duties to cover. Additionally, special projects may arise that require their attention more fully. Conversely, a compensation consulting firm focuses all of its efforts on providing superior service to its clients. This means they stay up to date on the latest laws that can affect which benefits are offered, who may qualify, and how claims are handled.
Saving the Company Money
In addition to sparing your human resources department the added workload, outsourcing to a compensation consultant can actually save money for your company. The outside compensation firm can offer the same benefits to employees of multiple companies. This means there’s a much larger number of people participating in the network, which reduces what each employer is expected to pay. This is especially true for costly health insurance and retirement plans.
Multiple Services from One Place
When you use an outside company, they can offer all or most of the benefits included in your company’s compensation package. This means they can discuss anything related to an employee’s benefits with great efficiency. A representative working from a human resources department, on the other hand, will likely have to consult multiple sources to find the answers the employee may require. A professional firm focuses solely on these services, so he or she will be able to access information quickly.
Looking into the services provided by a compensation consulting firm in your area may be well worth the time. By outsourcing these duties, you’ll be relieving your own staff of a time-consuming burden and ensuring your employees are getting the intended benefits.