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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