The worldwide market for outsourced employee benefit
administration is set to double in size to reach $22bn (£64bn) over
the next five years, analysts have predicted.
Outsourcing the administration of staff benefits is increasingly
driven by the need to offer staff more flexible benefit packages as
part of recruitment and retention initiatives, analyst firm
NelsonHall says in a new report.
NelsonHall found that increasingly complex legislation,
increased merger and acquisition activity, globalisation of
business and an ageing workforce are combining to push businesses
into a more strategic view of staff benefits administration.
Large enterprises with more than 10,000 staff were seeking to
bundle benefits administration services together for single
suppliers to produce greater cost savings and offer staff more
joined-up benefits packages.
At the same time, suppliers are seeking to offer analytics
covering employee take-up and “beyond benefits” services such as
sickness and management.
NelsonHall chief executive John Willmott said, “The global
benefits administration outsourcing market is set to grow across
all geographies as companies seek to reduce costs while complying
with emerging legislation and offering attractive benefits packages
to their employees.”
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