Benefits consulting is an outsourced human resource (HR) service which specializes in selecting, purchasing, implementing, administering, and renewing employee benefits plans. Benefits can include group health insurance, life insurance, paid time off, pensions, student loan repayment, disability insurance, and individual retirement accounts. Providers of these services determine the need, track the usage and availability of benefits for both the employer and employees’ use, and ensure compliance with governmental regulations. Benefits consulting services providers serve as the primary contact for insurance companies and vendors. By adequately researching and negotiating options, these companies can offer clients the plans that best fit their needs. Businesses work with these services around the year and should expect to be in regular contact.
Typically, benefits consultants work directly with HR departments and can advise employees on their options. Businesses that do not have an internal HR department can assign an administrator to coordinate with the service. Employee benefits consultants often work with small and medium businesses in choosing benefits plans and some then migrate to a professional employer organization. Some businesses may choose a more hands-on approach and manage their company benefits using benefits administration software.
To qualify for inclusion in the Benefits Consulting category, a services provider must:
- Facilitate access to a marketplace of benefits vendors, update information, and enroll in benefits during and outside of the annual open enrollment period
- Assist employers in comparing benefit options and selecting the most cost-effective benefits that comply with applicable laws and regulations
- Help companies select, purchase, and administer benefits including group health insurance, life insurance, paid time off, pensions, student loan repayment, disability insurance, and individual retirement accounts
