Outsourcing Benefit Administration for Greater Efficiencies

Company Overview

Our long-term manufacturing client with 350 employees was located in Pittsburgh, Pennsylvania and had multiple locations spread across several locations. They produce industrial machinery and have experienced a steady pace of growth over the past several years.

Key Challenges

With the expansion of their workforce, this company found itself facing increased complexities in managing most aspects of their employee benefit programs. The HR department was strained, struggling to handle the intricacies of benefits administration efficiently. Additionally, rising healthcare costs and the need for compliance with ever-changing regulations further added to the challenges.

MBA Solution Presented

To address these challenges, our team recommended that the company outsource its benefits administration to a specialized third-party vendor. We outlined the range of potential benefits, including cost savings, level of expertise, and improved efficiency. Specifically, the move would provide a state-of-the-art benefit administration platform that would integrate seamlessly with our client’s existing HR systems.

Additionally, we worked with the vendor to develop a clear communication strategy to inform employees about the transition, along with providing guidance on accessing and managing their benefits through the new system. The vendor also takes on the responsibility for staying updated on any regulatory changes and ensuring that our client’s benefit programs remained compliant.

Measurable Results

By accepting our recommendations and implementing the new benefit administration system, our client was able to increase their operational efficiency, enhance employee satisfaction and produce tangible cost savings. By partnering with the benefits administration firm, our was able to increase its focus on core business activities while benefiting from the vendor’s expertise and technology.