A recent study by Best Practices has found that companies that consistently achieve lower costs through outsourcing, not only invest adequately on vendor management, but also spend significantly on the design and build phases of their internal benefits administration tasks to ensure both processes are managed most efficiently.

However, if any of the process is ignored then it may lead to higher costs but leading companies achieve greater performance and, ultimately, lower costs by carefully focusing internal resources on vendor management rather than administration.

The study shows, “Outsourcing is a key strategic element of benefits administration for Savings, Pension and Health & Welfare across the benchmark class”.

Companies that minimized the number and complexity of the benefits processes in administration consistently achieve lower costs and higher-staff efficiency ratios.