HR Glossary  >   Employee Benefits Administration

Employee Benefits Administration

What is Employee Benefits Administration?

Employee benefits are considered to be a component of reward management. They are the management and administration of the perks or benefits offered to the workforce apart from salaries or wages. These benefit packages include overtime, medical insurance, profit sharing, retirement benefits, etc.

Handling the process benefits administration of an employee is entirely HR’s responsibility. Benefits programs are always helpful for employees. They will feel appreciated and valued if an employer considers employee needs while implementing such programs. In addition to improving employees’ economic security, these benefits will also serve as a way to ensure long-term engagement, efficiency, and, therefore, retention of the employee in the organization.


Frequently Asked Questions

What are the steps of the benefits administration process?

The administrator should consider which employees will receive the benefits, be it full-time, part-time, temporary, permanent, etc while making benefits administration procedures. Below mentioned are the steps to be performed:

  • The first step is for HR managers to identify various exempted or non-exempted employees and plans suitable for them. This involves insurance, retirement benefits, paid time off, and many other benefits to be given to the employees.
  • Then the administrators should timely check on various state and central laws to ensure that the benefits revised are compliant entirely.
  • The next and most crucial step in the process is to make employees aware of all the benefits and help them get registered into the programs before missing deadlines.

All these steps will be much simpler when performed using the software. Consider procuring an online platform to make employee registration more streamlined, where they can track and access their benefits plans without walking into the manager’s office.


Why is benefits administration valuable for employees and the organization?

The value of benefits for employees can never be understated as these benefits can make them feel rewarded for their efforts towards the company and be their need of hour during tough times. Following are the reasons why benefits administration is important:

  • Attract and retain skilled employees
  • Support employees outside the office
  • Ensures the mental health of employees
  • Promotes employees’ productivity and engagement
  • Improves company branding

What is the work of a benefits administrator?

The benefits administrator is none other than an HR professional who is given the responsibility of developing and controlling all the employee benefits, insurance policies, and retirement plans in the organization. The administrator, thus, should possess the knowledge of all the legal regulations to keep the benefits complaint. In addition, he should also look after employee requirements at all stages.

An administrator’s essential skills involve research, ability to train employees, capability to comprehend legal rules, understanding of technology, negotiating, interaction, and team cooperation.

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