Employee benefit outsourcing by corporations is expected to continue to increase, a Buck Consultants survey says. The survey shows 56% of employers outsourcing some employee benefit functions plan to farm out additional activities in the future.
About half - 47% - of the employers responding to the survey now outsource. Of the remainder, 15% plan to begin outsourcing.
Some 23% said outsourcing resulted in a significant reduction in department personnel; on average, staffing dropped to six from nine. The survey found the most common employee benefit functions outsourced are defined contribution plan record keeping and investments and health and welfare plan utilization review.
Of those outsourcing, 72% plan to make more technological support available, including toll-free lines, kiosks and software; 52% plan to renegotiate performance standards with current vendors; and 35% plan to change vendors.