Up to now, recruitment business Adecco has managed its employee benefits in-house, drawing on a standard package offered by a firm of advisers, with external administrators used for certain benefits.
Matthew Johnson, head of compensation and benefits at Adecco, says the decision to use a standard package was aimed at keeping internal administration to a minimum, but the reality has been different. “We try to get the two [organisations] to talk to each other, but they don’t,” he says.
As a result, Johnson says he has to spend a lot of time working with the two organisations, as well as having to manage relationships with individual benefit providers.
Increasingly, he is coming round to the idea of outsourcing the entire benefits offering to just one provider, which can handle individual relationships with suppliers and provide the thought leadership around new products, which Johnson believes is currently missing.
“At the moment, we are provided with a report from our flex provider and we then send that information to individual benefit suppliers,” he says. “But why isn’t our flex administrator doing that for us? That would be far more efficient.”