Employee Benefits Administration Best Practices

Businesses today, regardless of employee size or industry, know that competitive benefits packages offer both values to your existing employees and potential candidates, and help to boost productivity and retention in a sustainable, cost-effective manner. But there is more to benefits administration than just trying to remain competitive in the market. Employers must be concerned with how employees are using benefits, if they are using the benefits, and if the benefits are in-line with the organization’s strategic plan.


Employees see employer-sponsored benefits as a commitment to the employee’s future, health, and wellness. Businesses who spend the time and energy customizing a specific benefits plan that meets the needs of the specific industry, geographic region, and employee lifestyle are doubling-down on how they are adding value to their employees’ experiences at their organization.


Here are some of the best practices employers should consider when reevaluating their existing administration of employee benefits.

  • Make Benefit Details Easy to Understand
    Not all employees are comfortable with legalese. Make benefit plans accessible and approachable by removing legal-speak from benefit descriptions or plans. Take it a step further by providing realistic examples of plan payments or reasons to add on a voluntary/supplementary benefit plan.
  • Solicit Employee Feedback and Implement Results
    Asking employees for feedback is only beneficial if employees see their feedback being implemented, regardless of whether the comments are positive or negative.
  • Implement an On-Site Wellness Plan
    Without an added benefit to employees, an employer-sponsored, on-site wellness plan allows the business to reinvest in its most valuable asset: the employees. Beyond the wellness plan serving as a “perks” opportunity, the wellness plan will provide other benefits including decreased workplace illnesses and accidents, lower insurance premiums, and reduced employee absenteeism and turnover.
  • À la Carte Options
    Be flexible in employee benefits by allowing everyone to choose the benefits that make the most sense for them. For example, older employees will probably not be interested in new parent (maternity/paternity) benefits, while younger employees will gladly take the opportunity to sign-up for a lower-priced health option.

Quality employee benefits packages should include a combination of health insurance, dental, vision, and the second set of thoughtful supplementary or voluntary benefits. These secondary options could include anything from pet insurance or roadside assistance to hospital indemnity and identity theft protection. Offering quality benefits like these could help in more advantageous monitoring of employee salaries. Top employees and candidates are often willing to accept good benefits package in lieu of a slightly higher salary. To learn more about employee benefits options and best practices, contact Human Capital.

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