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6 Advantages of Outsourcing Benefits for Employees

Cassandra Rose, SPHR, SHRM-SCP


It’s no secret that today’s econ­o­my runs on out­sourc­ing. From man­u­fac­tur­ing and account­ing to IT and more, 90% of all orga­ni­za­tions out­source at least one job. There are some evi­dent advan­tages to out­sourc­ing tal­ent, but what about out­sourc­ing benefits?


. Free Up Valuable HR Time

HR depart­ments had a heavy bur­den dur­ing the COVID-19 pan­dem­ic. As the work­force tran­si­tions back to the office or into a per­ma­nent­ly vir­tu­al or hybrid envi­ron­ment, HR depart­ments con­tin­ue to jug­gle a mul­ti­tude of responsibilities.

Com­pa­nies can ease the bur­den on their HR team mem­bers by out­sourc­ing ben­e­fits. Ben­e­fits are often a time-con­sum­ing and cum­ber­some part of HR respon­si­bil­i­ty because they require imple­men­ta­tion and ongo­ing train­ing. Out­sourc­ing those respon­si­bil­i­ties can free up time that’s bet­ter spent on help­ing the team nav­i­gate the ​“new normal.”

2. Increase Cost Efficiency

This wouldn’t be an arti­cle about out­sourc­ing with­out men­tion­ing cost effi­cien­cy. After all, cost reduc­tion is the pri­ma­ry rea­son 70% of com­pa­nies out­source. Man­ag­ing and offer­ing employ­ee ben­e­fits in-house can be cost-pro­hib­i­tive, espe­cial­ly when fringe ben­e­fits are added to the equation.

Ben­e­fits com­pa­nies like Fringe have ded­i­cat­ed part­ner­ships with ser­vice providers, so com­pa­nies can offer desir­able lifestyle ben­e­fits with­out main­tain­ing rela­tion­ships with each indi­vid­ual provider. Plus, there’s no need to hire an in-house team mem­ber to onboard out­sourced ben­e­fits, sav­ing more mon­ey in salary costs.

3. More Comprehensive and Diverse Benefits Offering


As the work­force becomes increas­ing­ly diverse, the need for diverse ben­e­fits becomes more imper­a­tive. There isn’t a way to give every per­son what they need to thrive with a one-size-fits-all ben­e­fits package.

Out­sourc­ing lifestyle ben­e­fits to a cus­tomiz­able ben­e­fits provider like Fringe is ter­rif­ic for ensur­ing all employ­ees have their needs met. With Fringe, com­pa­nies give each employ­ee a set num­ber of points to use on the Fringe plat­form. They can use those points to choose from over 100 unique lifestyle ben­e­fits. It’s a ter­rif­ic way for orga­ni­za­tions to meet their diverse team’s indi­vid­ual needs.

4. Specialized Expertise

The ben­e­fits ecosys­tem becomes more com­plex each year. Essen­tial ben­e­fits like health insur­ance require HR depart­ments to learn new laws and imple­ment com­pli­cat­ed process­es. Add FHA accounts and lifestyle ben­e­fits into the equa­tion, and it can become over­whelm­ing quickly.

Every HR team mem­ber can­not know every­thing there is to know about the evolv­ing world of ben­e­fits. How­ev­er, it’s too cost-pro­hib­i­tive for most com­pa­nies to hire HR team mem­bers for each por­tion of the ben­e­fits landscape.

That’s where out­sourc­ing employ­ee ben­e­fits becomes invaluable.

Com­pa­nies can depend on ben­e­fit providers’ exper­tise. High lev­els of exper­tise trick­le down to the employ­ees, too. Instead of rely­ing sole­ly on the HR depart­ment for ben­e­fits-relat­ed ques­tions, employ­ees can reach out and get infor­ma­tion from the ben­e­fits ser­vice provider, which leads to employ­ees who feel empow­ered by their ben­e­fits pack­ages — not over­whelmed by them.

5. Privacy and Autonomy

Dis­cussing ben­e­fits with an employ­er can be embar­rass­ing for some employ­ees, espe­cial­ly when it comes down to issues of health, home life or finan­cial sta­tus. For instance, if a com­pa­ny pro­vides free trans­porta­tion for employ­ees who need it, an employ­ee might not feel com­fort­able express­ing their need for assistance.

Alter­na­tive­ly, a dis­abled employ­ee might feel uncom­fort­able ask­ing how inclu­sive the well­ness ben­e­fits are, just like anoth­er employ­ee might feel uncom­fort­able dis­cussing their men­tal health issues at work.

Out­sourc­ing ben­e­fits allow peo­ple to speak to an unbi­ased third par­ty from out­side the com­pa­ny about their ben­e­fits, and providers are com­fort­able answer­ing these ques­tions. With self-direct­ed ben­e­fit selec­tion, like what an employ­ee gets with a lifestyle ben­e­fits plat­form like Fringe, they can search and dis­cov­er ben­e­fits autonomous­ly with­out the need for an intermediary.

6. Happier, Healthier Employees


The most sub­stan­tial advan­tage to out­sourc­ing ben­e­fits is the result of hap­pi­er, health­i­er employ­ees. Too often, ben­e­fits pack­ages are com­pli­cat­ed and unus­able — they require the employ­ees to be elder­ly, sick or dead to use them. They’re often wrought with com­plex paper­work, unnec­es­sary jar­gon and exhaust­ing requirements.

It’s why 80% of employ­ees nev­er open their ben­e­fits pack­age and why 49% of those who do open them up can’t under­stand them.

Ben­e­fits are no help if employ­ees can’t use them. Out­sourc­ing ben­e­fits ensures every employ­ee has their needs met and ques­tions answered. It ensures the HR team has enough band­width to deal with today’s evolv­ing demands. It results in every employ­ee feel­ing val­ued by their employ­er, and hap­py, healthy employ­ees are the cor­ner­stone to today’s most suc­cess­ful companies.

Outsourcing Employee Benefits for Increased Flexibility

Com­pre­hen­sive, diverse and cus­tomiz­able ben­e­fits can only be obtained with gar­gan­tu­an bud­gets or by out­sourc­ing employ­ee ben­e­fits. The real­i­ty is that today’s world is con­stant­ly shift­ing, and it requires com­pa­nies to adapt at a record pace.

Adding new team mem­bers, cater­ing to hybrid teams and adjust­ing to a dig­i­tal-cen­tric work­force requires extreme flex­i­bil­i­ty and HR resources. Out­sourc­ing employ­ee ben­e­fits is a ter­rif­ic way to meet employ­ees’ needs and cater to their well-being while still being nim­ble to today’s fast-paced evolution.

By hav­ing ben­e­fits providers take care of the ben­e­fits, com­pa­nies can focus on tak­ing care of their employ­ees and mak­ing changes with­out hav­ing to wor­ry about how it will affect the ben­e­fits pack­ages. In addi­tion, it allows com­pa­nies to oper­ate with extreme flex­i­bil­i­ty in a time where flex­i­bil­i­ty is non-negotiable.

Fringe’s cus­tomiz­able lifestyle ben­e­fits plat­form allows com­pa­nies to out­source their lifestyle ben­e­fits with ease. Employ­ees get to choose the ben­e­fits they want, so even the most diverse teams get their needs met.

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