What is the benefits manager's role?

The benefits manager plays a key role in the effective management of benefits and services for employees. Generally, the benefits manager plans and directs the overall administration of benefit programs. A benefits manager's responsibilities include, among other duties:

• 1. controlling costs of benefits;
• 2. analyzing claims and utilization data;
• 3. establishing competitive benefit programs; and
• 4. communicating benefit information.

In addition, today's benefits managers have much more direct contact with hospitals, physicians, and ancillary health care providers and need to be keenly aware of various options given by service providers (for example, volume discounts).

Flexibility. Good benefit programs are flexible. Interestingly, this means that a good benefits manager has to be flexible as well.

A popular approach to meeting the changing benefit needs of employees is a cafeteria plan arrangement. A cafeteria plan allows an employer to offer a flexible employee benefit program that the employee can modify to his or her different needs; e.g., for life insurance, legal services, medical insurance, etc. and adjust to meet those needs over a period of time; e.g., changes in age or marital and family status. Very few, if any, additional full-time employees are needed to administer flexible programs.

There are important returns for employers in establishing and operating a well-managed benefit program. These may include a healthier work force, attracting good employees, reducing turnover, and motivating employees. Success in meeting these objectives, however, calls for careful design and management of benefit plans.

Communication. A good communication program is essential in order to make employees aware of the opportunities the plan offers them. In addition, the law requires employers to furnish employees with certain information, such as a summary description of the plan.

Cost containment. Because of the increasing cost of benefits, cost containment has become a key management function. Trimming costs may require redesigning or restructuring health care and other benefit plans or making the employee responsible for more of the cost of the benefit. Other cost-cutting measures include coordination of benefits in dual-career families, deductibles, and co-insurance. Also, having a third-party administrator handle medical claims can provide health care cost savings.