Module 1 Making The Decision To Outsource An Employee Benefit Flashcards
What percent of the cost of doing business is workforce cost?
70 to 85%
Which components of the total rewards make up workforce costs?
Pay and benefits
What percent over total compensation costs is benefits?
25 to 40%
When, or in what circumstances, might wanna go for a request for proposal?
Dissatisfaction with current provider, or a review to change provider required by organizational standards
What are the five steps for outsourcing a benefit?
Request for proposal
Select a service provider
Negotiate
Implement the service
Manage the service project
What are the two types of benefits outsourcing?
Benefits process
Benefits project
How would a benefits process be defined regarding outsourcing
Process = an ongoing function may be outsourced to a service provider
How are benefits projects defined in regard to outsourcing?
Project= a temporary project may be outsourced to a service provider
List four examples of a process or function which can be outsourced
Payroll administration
EAP piece
Wellness
Health reimbursement, or spending account in ministration
List five examples of a benefits project that may be outsourced
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
What are the four primary approaches to outsourcing benefits?
Traditional
Service centers
Network consortium
Independent consultants
Define traditional outsourcing
What a task or function is performed by an external provider (contractor)
Defined the service centers approach to outsourcing benefits
Service centers have the primary purpose of consolidating administration to one location
Defined the network consortium approached, outsourcing, benefits
Administrative functions occur among coordinated service providers, operating from their own premises, linked together electronically
Define the independent consultants approach to outsourcing benefits
Usually on a project basis - may bring in expertise and neutral third-party to evaluate HR practices
What are common options for HR or outsourcing?
Benefits
Payroll
Staffing and recruiting
Training
Audits and investigation
Which of the following is an example of what it’s called total benefits outsourcing?
- traditional outsourcing
-  Service centers
-  Network consortium
 Independent consultants -  net, work consortium
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
- it will determine those tasks or functions that may be corrected internally with a little or no intervervention
How will the role of human resources change if a project or function is outsourced?
-  From Strategic to tactical
-  From tactical to Strategic **
-  HR role will not change
- from tactical to strategic
