Employee Benefits Administration

Employee benefit administration means the maintenance and analysis of benefit plans which are part of employee remuneration. These can be for example health insurance, retirement plans, paid time off, sick leave, disability insurance, life insurance and other perks and incentives that are aimed to attract and retain talented professionals. Benefits administration generally implies performing many tasks among which are the enrollment of employees into the plan, the explanation of coverage options, the processing of claims, the dealing with vendors and compliance with the laws. HR departments typically manage employee benefits package administration and ensure that benefit packages are competitive and consistent with an organization's broader total compensation plan.

Example of Employee Benefits Administration

The HR department of a financial services company made its employee benefits administration process more efficient by introducing a digital benefits platform that allowed the employees make online access to and preferred management of their benefits. Through the platform, employees had access to personalized dashboards where they could view their coverage choices, make changes to their benefit elections and track their usage and claims data in real-time. HR representatives also leveraged this platform in sending out essential notifications regarding the benefits program, including changes in coverage or upcoming open enrollment periods. The company was able to automate processes in benefits administration and thus enhance efficiency, lower administrative overhead, and improve the employee experience as a result of digitization.