Everyone has tasks to do on their desk and will always run into issues of completing more. Somethings just have to come off the employer’s desk. This is where outsourcing or delegation is needed. For some small employers, it is hard to give up control of somethings, or even know where to start. Employee benefits is a key item to retain employees, but where do you find the time to keep up with all the compliance changes? The fines could be devastating to the bottom line.
A small manufacturer with about 23 employees in the south suburbs of Chicago felt they had control over their employee benefits. For several years, all they did was contact the insurance company directly and, of course, the insurance company was glad to skip the insurance broker and take the business. Note: The premiums are the same either way.
As the employee benefits arena changed with healthcare reform, the employer felt they were not receiving the right facts and information needed moving forward. The insurance companies were being bias with their comparisons and it was starting to get harder and harder to find the right information for their business.
Even the information they have, took large amounts of time. By delegating to their assistant, it still cost money and time. It is now just another thing on their desk to work with year after year. By adding the complex changes to the mix with the new law, it increases this time at least two-fold.
This happens everyday with manufacturers and small businesses. Employers are having a hard time with the changes and are looking for ways to get it off their desk.
Employee benefits is a real key item in employee retention. It is a sought-out benefit from talented employees looking for employment or to advance their career. It is an investment that an employer has to make in order grow and be profitable.
Employers do not have time to add anything else to their list of items. It needs to be taken care of but where do they find someone who is qualified and has the time?
There are advisors and consultants that have resources and tools at their fingertips because they work with employers on a regular basis. Besides staying up to speed with plan design changes from insurance company to insurance company, the resources help keep employers compliant. Employers may start seeing more and more Department of Labor and ERISA audits. The government is hiring more auditors to increase the number of audits; fines. This can impose hefty fines for employers and will cost them more than the investment of an advisor or consultant and the requirements in order to be compliant.
By keeping this item on your desk, how would you know if you are compliant? You have a business to run and to keep growing market share. It is time to take the employee benefits and compliance issues off your desk and put on someone else’s desk. It is an investment in the growth of the company.