Benefits Administration Support Helps You Do More With Less

JULY 5, 2023

Labor remains the top cost for small businesses, accounting for 70% of spending in 2022.¹ While larger businesses will occasionally use layoffs or outsourcing to reduce labor expenses, employers that are already operating with minimum staff or are struggling to fill job openings simply cannot afford to lose employees. Businesses looking to do more with the staff they have can look to technology for help.

A broad range of vendors and solutions exist to help smaller businesses with common challenges, such as benefits administration, human resources management, and regulatory compliance. These solutions offer many benefits to employers – reducing repetitive and time-consuming manual tasks and errors, improving employee engagement and satisfaction, and avoiding costly Department of Labor (DOL) penalties and fines – without adding the overhead expense of staffing a full department.

Tech Support Best Suited to Your Needs

Before investing in a benefits administration or HR solution, take the time to evaluate your needs and the different solutions available:

Benefits Administration – Ranging from data management to full-service enrollment and benefits communication, benefits administration platforms can reduce time spent on manual processes, cut down on costly errors and liability, limit confusion and miscommunication, and ensure eligible employees and dependents have access to their enrolled benefits.

Best for: Organizations experiencing growth or struggling with managing benefits enrollment and eligibility.

HR and Compliance – Human resources management systems can provide a variety of solutions, from handbooks and forms to payroll and performance management. Some vendors, such as Mineral, provide tools and resources to help small businesses improve regulatory compliance and avoid costly fines. For example, employers can be fined $110 per day per affected individual for failing to provide COBRA notices.

Best for: Organizations unsure of their compliance obligations, or with limited HR capacity.

Employee Benefits Education and Communication – Helping employees better understand the benefits offered to them can increase engagement and improve employee satisfaction. One study found that 80% of employees who rank their benefits satisfaction as very high also rank job satisfaction as very high.² Some benefits administration platforms include employee communication and education support, such as developing custom open enrollment communications plans and one-on-one enrollment support.

Best for: Organizations that want to improve enrollment and benefits usage.

Depending on the platform, costs can range between $3 and $5 per employee per month (PEPM), though some vendors will subsidize the rate which can reduce or eliminate PEPM fees entirely. Even at $5 PEPM, the investment for an organization with 30 employees is under $2,000 per year — significantly less than hiring and maintaining additional departments.