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Benefits administration involves managing employee benefits and ensuring they are properly implemented. This includes overseeing health insurance coverage, retirement programs, and communicating with employees about their benefits. Efficient administration balances employee well-being with cost-effectiveness for the company.
Benefits administration involves creating and managing employee benefits, as well as providing a means for employees to be trained to understand how benefits work and what types of standards employees must meet to qualify for benefits. Often, benefits administration occurs within the Human Resources department of a larger company, although smaller companies may designate the benefits administration function to other areas or individuals. Here’s some background on what an effective manager does on a daily basis.
Much of the administrator’s job goes into coordinating a benefit plan that is currently in effect. Benefits administration means spending much of your day making sure benefit plans are running smoothly. This will often include a review of the accrual of personal days, vacation days, and sick days. The administrator will ensure that the process for adding days off to an employee’s account is done according to the process defined by the company. In addition, the administrator will work with the payroll department to ensure that the employee is paid for the approved days and that those days are deducted from the appropriate resource.
Next, benefits administration often involves overseeing health insurance coverage for qualified employees. This means making sure that payments are made to the insurance provider in a timely manner, as well as ensuring that all qualified employees who want to be included in group coverage are properly processed. The administrator will also be responsible for implementing a benefit plan for new employees who complete the probationary period that many companies require before they are eligible to accrue paid vacation and health coverage.
When the employee benefit program includes an investment or retirement program, the benefits administration staff will also oversee the day-to-day operation of those programs. This may involve making sure that payroll deductions are in place to help fund any contributions made by the employee, as well as ensuring that matching funds promised by the employer are applied in a timely manner. This puts the manager in direct contact with the company’s financial officers, who will work with the management team on behalf of all company employees, both hourly and salaried.
Part of benefits administration also involves interaction with the employee. At any time, an employee should be able to meet with an administrator and get the latest information on the status of their benefits. From this perspective, the administrator is a means of communication between the company and the employee. This can be done by allowing employees to make inquiries whenever they want, and by providing regular updates to each employee on the status of their benefits.
It is important to recognize that benefits administration is involved in not only looking after the well-being of the employee, but also the well-being of the company. To that end, efficient benefits administration means developing benefit programs that are good for the employee, but don’t put undue pressure on the company to meet those benefit commitments. For this reason, administrators are often looking for new benefit options, trying to find programs that provide at least as much for employees, while keeping the cost to employers as low as possible.
Smart Asset.
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