Corporate benefits departments are shifting, growing, and responding to the needs of their employees by outsourcing more time-consuming benefits functions, according to a new survey conducted by the International Foundation of Employee Benefit Plans.
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The survey, Corporate Benefits Departments: Staffing and Operations, revealed that companies report outsourcing 40% of their benefit functions, most commonly for:
- Employee assistance programs (EAPs): 77%
- Flexible spending accounts (FSAs): 69.4%
- Consolidated Omnibus Budget Reconciliation Act (COBRA): 63.6%
- Retirement benefit payments: 56.3%
- Pharmacy benefits administration: 52.5%
Outsourcing is growing, the survey data show: More than one-third of companies experienced an increase over the past 2 years. The number one reason companies outsource is to tap into more specialized expertise.