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An HR Glossary for HR Terms

Glossary of Human Resources Management and Employee Benefit Terms

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Benefits Administration

What is Benefits Administration?

Benefits administration means it is the process of designing and managing employee benefits packages within an organization. This process typically consists of the following steps: evaluating the value of current benefits programs, communicating with benefits suppliers, selecting competitive benefits, educating employees on what benefits are offered, helping employees enroll in benefits programs, and reviewing and updating both employee and benefits information. Benefits administration is usually one of the essential functions of an HR department or a benefits administrator within an HR department.

Effective benefits administration can serve as a competitive advantage for many organizations in attracting, hiring, and retaining top talent, as well as cutting operational costs. When an organization analyzes the needs of its employees and chooses benefits to meet those needs, employees often feel heard and appreciated, which can increase employee engagement. Likewise, candidates are often more likely to apply at and work for an organization that has competitive and meaningful employee benefits. Finally, evaluating current benefits programs and industry trends as a part of the benefits administration process can help an organization save money by cutting underutilized programs and negotiating for the best plans and rates.

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