New benefits admin system? 4 keys to making the right pick

by Jared Bilski

With HR departments at small companies stretched so thin (many times one staffer handles all of HR), it’s no surprise many small companies are using benefits administration systems for their needs. But with new software vendors popping up every day, how do HR pros find the right system?

At the Dig|Benefits Conference in Austin, TX, Joshua N. Jeffries, a partner with Arkin Youngentob Associates, LLC, outline the four most important steps small employers should take when selecting an “efficient, cost-effective” benefits administration system:

Selection checklist

Step 1: Define your needs. What are you looking for in a benefits administration system? This step needs to go beyond HR and incorporate all departments within the company. Jeffries reminded HR pros that Benefits has one of the top Profit/Loss (P/L) line items for most businesses. Any soft-dollar spending in this area needs to be justified in your compensation plans.

Step 2: Evaluate your vendor. With the sheer number of vendors out there, this step can seem a bit daunting. But the process is much less intimidating when HR pros break it down into small questions.

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