A third-party administrator does the administration of benefits on behalf of an employer. Outsourcing employee benefit administration, gives human resources more time to concentrate on strategy behind employee reward.
In the employee benefits market, pensions administration has been the most popular employee benefit to outsource because it can be cumbersome to manage. Other benefits that can be outsourced include fleet management, private healthcare and, flexible and voluntary benefits schemes.
Many processes in HR and benefits administration, such as updating employees’ details, can be repetitive. So there is an argument that these can be delivered much more efficiently by outsourcing to providers that have scalable and replicable systems in place, as well as the technology to process these transactions more cost-effectively.