Two Ways to Outsource Benefits: Brokers and HROs

In an era of rising health costs and aging baby-boomers, health insurance and retirement programs are becoming more and more important to employees.

For a small employer, a good benefits package can be one of the best ways to attract and keep good employees. Job candidates usually weigh job offers based on three aspects: career advancement opportunities, pay, and benefits. In a small company, career advancement may be limited and the company may not be able to match the salary offered by a larger competitor. That makes the benefits package all the more important.

Your company can select and administer insurance and other benefits programs in-house, but many small businesses find it more cost-effective to use outsource services for all or part of the process. Specialized services can help you find the most affordable insurance, compare and double-check vendors’ terms, and manage enrollment and ongoing administration of those programs.

But the array of companies and consultants that want your benefits business can make your head spin. To simplify, we’ll divide them into two categories.