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There are three major key issues in benefits administration: communication about the benefits program, claims processing, and cost containment. Discuss each of them. Also state which is the most critical and why?

Employees benefits are basically the part of the total compensation package, other than pay for time worked, provided to employees in whole or in part by employer payments, e.g. life insurance, pension, workers compensation, vacation. The administration of these benefits

has a significant importance in these compensation plans. Benefit administrators do more

than plan what benefits to offer and to whom. They must take care of the benefit package that is in effect. This administrative task consists of communication about the benefits program, claims processing, and cost containment. We are going to discuss all of them one by one.

Communication about benefits programs:

Communication is required to reduce the complexity of the benefits programs and putting resources to explain it to the employees. Whenever you need to communicate the benefits

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programme to the employees and stockholders you have to keep in mind that there are three major elements of effective communication. Whenever company is going to launch a benefit program, it must spell out its benefit objectives and ensure communication achieve the objectives. The second element that the company should seek for the communication is appropriate medium of communications. More effective medium will resultant into the huge success for the benefit program. Here a factor is required that the message should match with the medium applied. The possible medium for the organisation are: Use of intranet an internal organizational online Web through which all forms of communication within the organization can be streamlined Streamlined call center operation

The all the possible methods of communication are Employee handbook, personalized benefit statements, Meetings with employees, Multi-media presentations, Intranet and Streamlined

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Benefits administration:

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call center operation. The third essential element for the communication is the content of communication. These Content of communications package must be complete, clear, and free of complex jargon. More the clear contents more the motivation level can be achieved by the employees.

Claim Processing:

Employees ordinarily have to request that benefits be invoked, and it is up to the organization

or others, such as insurance companies, to decide if the request is legitimate. Here the

person. This work can be time-consuming but does not necessarily require highly technical skill to perform. Here is the role and technical knowledge of the processor is very important. The step wise role of processor is as followed:

Determine whether the act has, in fact, occurred Determine if the employee is eligible for the benefit Calculate the payment level

When counselling employees who have been turned down for a claim and showing them and

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Cost Containment:

keep them cool for why they did not qualify requires good interpersonal skills.

It is the process through which a company can best offset the rising costs associated with benefits, while still providing the best benefit package available for their employees. This is the reason why some companies look to immediate, short-term solutions, such as raising deductibles, increasing employee contributions, or terminating some plans for employees such as retirement benefits. There are four major prevalent practices that major companies adopt for the purpose of cost containment which are: 1. Probationary periods

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company has to determine if the act claimed has occurred, the payment is appropriate to that

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2. Benefits limitations 3. Co-pay 4. Administrative cost containment

The administration of benefits is becoming much more important in organizations; staff specialists are assigned to this function. Planning out the program is not the only requirement; control of costs is also becoming a major goal. To maximize the impact of benefit plans,

organizations are developing sophisticated communication programs to explain to employees the advantages of their benefits. As all of the above three factors are considered all have their own significant importance. Failure in the single element of the administration of benefits can cause the benefit programs to turn down. As I analyse the whole process critically, I found the communication factor more important than any other elements despite the factor that all

of the other elements have their own significant importance. It is more important because if you fail to communicate a clear, free of complex jargon and easy to understand benefit program, it will be problematic in future. That will cause the failure of the process claiming. It will be difficult for both processor and for the claimer that what they are claiming and what will be the possible benefits they can achieve by the program. Similarly that will be problematic in such a way that the employees dont show interest in the program. So if a

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progress too.

communication of benefit is implemented correctly then the desired objective will be easy to achieve. Employees contribution to the program will be high and their motivation and loyalty to the company will boost up their operations as they come to know that their own company is offering them the extra benefits. So the internal mouth of words can increase the goodwill, efficiency and the high turnover for a company. Failing to do so can let you down. So keeping in mind all of these benefits and drawbacks show that the communication about the benefits has a critical importance for the benefits administration and for the company

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Conclusion:

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References

Journal:

Maren, Peter H. (1994). Administering and Communicating a Comprehensive Benefits Program to All Employees on a Large and Diversified Campus: CUPA Journal, v45 n1 p1518 Spr

Book:

Internet:

www.wisegeek.com/what-is-benefits-administration.htm http://management.uta.edu/Dr.Wheeler/5322%20fall%2007/Chap012.ppt

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George W. B & Scott A. S. (June 16, 2000). Managing human resources: South-Western Educational Publishing; 12th edition

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