Your company’s workers are the backbone of your business. You need to take care of them both physically and emotionally, which is why offering benefits is significant. But administering those benefits can be a lot of work, especially if you have a lot of employees. That’s where third-party administrators (TPAs) or outsource benefits administration come in.
What Are Third-Party Administrators (TPA)?
A TPA is a company where you can outsource the management and administration of your employee benefits, including the Family Employee Assistance Program (EFAP). This can include health insurance, dental and vision plans, retirement savings plans like 401(k)s, and more.
Benefits of Using a TPA
1. Saves You Money
One of the biggest benefits of using a TPA is saving you money. TPAs know the market and how to get the best deals on plans and coverage for your employees. They also have expertise in administration, so you don’t have to worry about any compliance issues.
2. You Can Focus on Your Business
When you outsource benefits administration to a TPA, you can focus on running your business. You don’t need to think about the details of administering benefits or whether you comply with the law.
3. Your Employees Will Be Taken Care Of
When you use a TPA, you can ensure that your employees’ benefit needs will be taken care of. The TPA will work with them to find the best plans and coverage for their needs. And if there are any problems, the TPA will take care of them, so you don’t have to.
For example, TPAs are experts in knowing what your employees need. One of these is taking care of their mental health wellbeing since one out of three employees in the workplace in Canada struggles with mental health problems. So, they will find a suitable mental health care plan for your employees.
4. A TPA Can Help You Attract and Retain the Best Employees
When you offer good benefits, you attract and retain the best employees. And when you outsource benefits administration to a TPA, you can be sure that your employees will have access to the best plans and coverage. This will help you keep your top talent.
5. You Have Peace of Mind
When you outsource benefits administration to a TPA, you will have peace of mind. You know that your employees are taken care of, and you don’t have to worry about compliance with the law. Plus, you can focus on running your business without worrying about benefits administration.
6. They Can Provide Expert Advice
When you use a TPA, you get more than just benefits administration. You also get access to expert advice. For example, if you’re unsure what benefits to offer your employees, a TPA can help you figure it out.
7. They Can Help with Communications
A TPA can also help with communications between you and your employees. They can make sure that your employees understand their benefits and use them. In addition, they help with open enrollment and other times when you need to communicate with your employees about their benefits.
8. They Can Help with Compliance
A TPA can help you with compliance, both with the law and your benefits plans. For example, they can help you make sure that you comply with the new Health Care Reform laws.
As a Summary
Using a third-party administrator (TPA) for your employee benefits has many benefits. TPAs can save you money, help you focus on your business, take care of your employees, and help you entice and retain the best employees. Plus, you will have peace of mind knowing that your benefits are being taken care of by experts.
On top of these, look for a third-party administrator, such as LifeWorks that offers complete administration services. They offer many TPA services, including online counseling and therapy, online consultation with qualified physicians, wellness coaching services from LifeWorks, and more.