Managing employee benefit plans can be a severe drain on company resources. In addition to occupying time that could be used for other tasks, the added workload can cost a company in the form of overtime, since employee benefits cannot be delayed.
Besides human resources employees, executives, supervisors and managers often need to be kept in the loop when large financial considerations are at stake. Human resources departments often have enough tasks on their plates to begin with, so it is often more efficient and economically feasible to contract a benefit services company to oversee insurance options.
Benefit enrollment and plan administrative services are becoming increasingly automated, and it is often a major project to install, oversee and troubleshoot the complex software applications that make this automation possible. The added staff that this requires on top of the hours it takes away from other departments means that it is a task best left to an outside professional organization.
Perhaps most importantly, employee benefits should be managed by a consulting company simply because in-house benefits management can end up being rife with mistakes and redundancies. Drawing workers from many departments to complete a variety of strange and difficult tasks is an unappealing option when contrasted with the professionalism and efficiency of benefits and human resources specialists.
