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Essay Assignment - Benefits Administration Issues - Www.topgradepapers

Essay Assignment - Benefits Administration Issues - Www.topgradepapers

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Academic Essay and Research Assignment . Get help in your writing by a dedicated team. www.topgradepapers.com
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Published by: Top Grade Papers on Jun 17, 2012
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There are three major key issues in benefits administration: communication about thebenefits program, claims processing, and cost containment. Discuss each of them. Also statewhich is the most critical and why?
Benefits administration:
Employees benefits are basically the part of the total compensation package, other than payfor 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 morethan plan what benefits to offer and to whom. They must take care of the benefit package thatis 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 puttingresources to explain it to the employees. Whenever you need to communicate the benefitsprogramme to the employees and stockholders you have to keep in mind that there are threemajor elements of effective communication. Whenever company is going to launch a benefitprogram, it must spell out its benefit objectives and ensure communication achieve theobjectives. The second element that the company should seek for the communication isappropriate medium of communications. More effective medium will resultant into the hugesuccess for the benefit program. Here a factor is required that the message should match withthe medium applied. The possible medium for the organisation are:
 – 
 
Use of intranet
 – 
an internal organizational online Web through which allforms of communication within the organization can be streamlined
 – 
 
Streamlined call center operationThe all the possible methods of communication are Employee handbook, personalized benefitstatements, Meetings with employees, Multi-media presentations, Intranet and Streamlined
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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 freeof complex jargon. More the clear contents more the motivation level can be achieved by theemployees.
Claim Processing:
Employees ordinarily have to request that benefits be invoked, and it is up to the organizationor others, such as insurance companies, to decide if the request is legitimate. Here thecompany has to determine if the act claimed has occurred, the payment is appropriate to thatperson. This work can be time-consuming but does not necessarily require highly technicalskill 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 levelWhen counselling employees who have been turned down for a claim and showing them andkeep them cool for why they did not qualify requires good interpersonal skills.
Cost Containment:
It is the process through which a company can best offset the rising costs associated withbenefits, while still providing the best benefit package available for their employees. This isthe reason why some companies look to immediate, short-term solutions, such as raisingdeductibles, increasing employee contributions, or terminating some plans for employeessuch as retirement benefits. There are four major prevalent practices that major companiesadopt for the purpose of cost containment which are:1.
 
Probationary periods
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2.
 
Benefits limitations3.
 
Co-pay4.
 
Administrative cost containment
Conclusion:
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 employeesthe advantages of their benefits. As all of the above three factors are considered all have theirown significant importance. Failure in the single element of the administration of benefits cancause the benefit programs to turn down. As I analyse the whole process critically, I foundthe communication factor more important than any other elements despite the factor that allof 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 benefitprogram, 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 whatwill be the possible benefits they can achieve by the program. Similarly that will be
 problematic in such a way that the employees don’t show interest in the program. So if a
communication of benefit is implemented correctly then the desired objective will be easy toachieve
. 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 owncompany is offering them the extra benefits. So the internal mouth of words can increase thegoodwill, 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 aboutthe benefits has a critical importance for the benefits administration and for the companyprogress too.
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