Module 1 Making The Decision To Outsource An Employee Benefit

Question 1

What percent of the cost of doing business is workforce cost?

Answer 1

70 to 85%

Question 2

Which components of the total rewards make up workforce costs?

Answer 2

Pay and benefits

Question 3

What percent over total compensation costs is benefits?

Answer 3

25 to 40%

Question 4

When, or in what circumstances, might wanna go for a request for proposal?

Answer 4

Dissatisfaction with current provider, or a review to change provider required by organizational standards

Question 5

What are the five steps for outsourcing a benefit?

Answer 5

Request for proposal
Select a service provider
Negotiate
Implement the service
Manage the service project

Question 6

What are the two types of benefits outsourcing?

Answer 6

Benefits process
Benefits project

Question 7

How would a benefits process be defined regarding outsourcing

Answer 7

Process = an ongoing function may be outsourced to a service provider

Question 8

How are benefits projects defined in regard to outsourcing?

Answer 8

Project= a temporary project may be outsourced to a service provider

Question 9

List four examples of a process or function which can be outsourced

Answer 9

Payroll administration

EAP piece

Wellness

Health reimbursement, or spending account in ministration

Question 10

List five examples of a benefits project that may be outsourced

Answer 10

Implementation of benefit management software

Design of sales, compensation, and or executive pay plans

Selection and negotiation of health insurance contract

Advice from external legal counsel about an EEOC claim

Establishment of policies and procedures to comply with HIPAA

Question 11

What are the four primary approaches to outsourcing benefits?

Answer 11

Traditional

Service centers

Network consortium

Independent consultants

Question 12

Define traditional outsourcing

Answer 12

What a task or function is performed by an external provider (contractor)

Question 13

Defined the service centers approach to outsourcing benefits

Answer 13

Service centers have the primary purpose of consolidating administration to one location

Question 14

Defined the network consortium approached, outsourcing, benefits

Answer 14

Administrative functions occur among coordinated service providers, operating from their own premises, linked together electronically

Question 15

Define the independent consultants approach to outsourcing benefits

Answer 15

Usually on a project basis - may bring in expertise and neutral third-party to evaluate HR practices

Question 16

What are common options for HR or outsourcing?

Answer 16

Benefits

Payroll

Staffing and recruiting

Training

Audits and investigation

Question 17

Which of the following is an example of what it’s called total benefits outsourcing?

Answer 17

• traditional outsourcing
•  Service centers
•  Network consortium
   Independent consultants
•  net, work consortium

Question 18

How can the process review help with determining whether or not outsourcing may be necessary?

• It will determine how satisfied internal customers are with HR
• That’ll determine how potential service providers can perform the necessary function
• it will determine those tasks and functions that may be corrected internally with little or no intervention

Answer 18

• it will determine those tasks or functions that may be corrected internally with a little or no intervervention

Question 19

How will the role of human resources change if a project or function is outsourced?

Answer 19

•  From Strategic to tactical
•  From tactical to Strategic **
•  HR role will not change
• from tactical to strategic