Employee Benefits Administration
What Is Employee Benefits Administration?
Employee benefits administration refers to how the benefits for a business’s employees are decided, administered, and managed.
These benefits usually include (but are not limited to):
- Vacation time – paid and unpaid
- Sick leave
- Parental leave
- Dental benefits
- Health benefits
- Disability benefits
- Retirement benefits
The human resources department usually coordinates employee benefits administration.
So what does the process of employee benefits administration look like?
While it differs from business to business, the process typically looks like this:
- The current benefits program is reviewed and adjusted if necessary
- The HR department will then communicate with current and potential benefits suppliers
- Competitive benefits are selected
- Employees are educated on the benefits, and all benefits are discussed with employees
- Employees are helped with the onboarding for the different programs
- The benefits programs are then reviewed regularly
What Does the Employee Benefits Security Administration Do?
The Employee Benefits Security Administration (EBSA) is the federal government agency that provides all the related information about the potential benefits that are available for employees in the private sector.
The EBSA exists to provide employees with everything they need regarding work benefits and their rights. Acting as a watchdog, it ensures that workers’ rights are met by their employer and that the employees are not only aware of their rights but also that they understand and can make the most of them.
What Is the Role of a Benefits Administrator?
A benefits administrator is a role that is usually part of the human resources department of a business. In smaller businesses, the role of the benefits administrator is traditionally taken on by the HR managers.
Whoever takes on this role in a business should have knowledge in and around:
- Federal guidelines around retirement and health
- The current employees of the business and the needs that should explicitly be met for them
Some of the duties of a benefits administrator include choosing the most suitable HR software, the insurance policies for employees, and managing the entire benefits program from the top down.
See our full list of over 50 Small Business Terms here.
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