One of the most compelling arguments in favor of contracting a consulting firm to manage employee benefits is that various departments have different perspectives on the matter. Getting a CEO, finance department, human resources group and information technology division to agree on something as important as benefits can be a futile effort.
One reason is that different benefits often fall under the purview of different organizational divisions. For example, finance departments are often in charge of 401k accounts and other retirement funds, many of which grow as a result of sound investment. Conversely, human resources professionals are responsible for other employee benefits, such as those related to health and medical insurance.
Additionally, the CEO of a company will be advised on these matters by one group of people, while information technology and human resources approach the problem with a completely different perspective. If left to their own devices, each division would choose insurance plans and employee benefits based upon wildly differing criteria. CEOs want plans to be cheap while HR departments look for the best value for employees.
For the best possible balance, a third party consulting company will produce the highest all-around value. Beholden to no single factor in the decision-making process, benefits administrators will be able to consider all of the factors at play and ensure that all departments are as satisfied as they can be.
