Client Case Study

Benefit Administration Outsourcing

• Profile: Manufacturing Company, 7,500 employees
• Challenges
  • 47 decentralized business units
  • 18 different payroll files
  • No centralized data or record-keeping system
  • Benefits not part of HR competency
  • High benefit administration headcount cost
  • Inconsistent administration of COBRA and FSA accounts
  • Inability to produce and measure performance
• Strategy
  • Standardize Benefit Administration protocols across all 47 business units
  • Create baseline database from multiple data sources
  • Implement a centralized record-keeping system
  • Improve the support and service being delivered to beneficiaries and retirees
  • Reduce internal headcount currently dedicated to Benefit Administration
  • Establish compliant administrative practices
  • Implement financial, plan and eligibility reporting
• Results
  • Improved efficiencies through centralization of all benefit administration activities
  • HR/Benefit headcount reduced by 22%
  • Delivered $1.4 million in administrative cost savings
  • Established robust monthly reporting package for Business Units and the Corporate Finance Department, providing the opportunity to analyze data and create metrics
  • Created an additional 8% savings (first year) due to eligibility reconciliation
  • Brought COBRA and FSA practices in alignment with federal compliance regulations, eliminating the risk of financial penalties