The process of recruiting, hiring and retaining qualified employees is vital to any company’s success. Benefits administrators are management and/or human resource (HR) professionals who assist in this undertaking by keeping employees informed about their benefits, including health insurance and retirement plans.
Professionals with a broad range of business skills, experience and appropriate education will have access to the best opportunities in this competitive field. Enrolling in a quality degree program such as the online Bachelor of Arts (BA) in Business Administration – Management from Florida Institute of Technology can be a good start to a benefits administration career. Students can acquire specialized HR knowledge through the program’s Management of Human Resources course as well as further elective coursework to augment generalized business and management studies.
Job Outlook for Benefits Administrators
The U.S. Bureau of Labor Statistics (BLS) projects that employment of compensation and benefits managers, including benefits administrators, will increase by 2% between 2023 and 2033. This relatively slow job growth will result from factors such as shifting, performance-based comp structures as well as changing health and wellness program models.
Interestingly, another component of change is that organizations are beginning to contract out compensation and benefits administration services to third-party HR consulting firms. As such, new benefits administrator jobs and consulting roles may evolve outside traditional internal management models.
What Is Benefits Administration?
Benefits administrators are specialists who design and administer a company’s benefits programs. They typically negotiate with insurance and retirement plan providers and make recommendations regarding the best choice in accordance with company goals. They may also administer wellness, legal, transportation, education and other assistance programs.
When analyzing and preparing benefits packages, benefits administrators generally consider cost and features, as well as the overall performance and responsiveness of service providers. Once they have determined the optimal components, benefits administrators present their findings and recommendations to management through written reports or oral presentations.
Benefits administrators often assist newly hired employees with enrollment and meet with all employees during open enrollment periods to explain plan changes and options. They may be responsible for processing billing and resolving discrepancies with insurance providers. Other duties of benefits administrators may include communicating with employees to ensure a thorough understanding of benefits, consulting with individuals about coverage for medical procedures and following guidelines for legal compliance.
Most benefits administrators work in an office setting. A standard 40-hour week is typical, but flexible hours and overtime may be necessary. As noted above, new benefits administration models are also creating more independent roles for professionals in the field, adding to the growing diversity of consultant and analyst careers for management experts.
Benefits Administrator Salary Potential
According to BLS, the median annual salary for compensation and benefits managers was $136,380 in May 2023. Salaries for the lowest 10% were around $76,550, while the highest 10% brought in upwards of $229,970.
Recent bachelor’s graduates may start toward the lower end of the range or in a lower-tier benefits administration role such as compensation, benefits and job analysis specialist. The top salaries typically go to benefits administrators with extensive experience or advanced education.
Education and Training for Benefits Administration
Benefits administrator jobs typically require at least a bachelor’s degree in business or a related field. Professionals in this role must have thorough knowledge of accepted business practices, especially those pertaining to organizational development and leadership. These are the foundational areas of study for business management majors.
As such, an accelerated career as a benefits administrator can begin with a bachelor’s degree in business administration with a concentration in management. Coursework typically includes strategic management, organizational behavior and development, applied decision methods for management, human resources management, and statistics. Students can also enroll in further human resource electives or coursework in their specific industry of choice. Employers can be confident that graduates of a business administration program with a concentration in management are able to:
- Demonstrate effective business communication skills
- Identify workplace issues and make sound recommendations for solutions
- Implement practical strategies based on industry-recognized organizational and behavior theories
- Analyze data and interpret results to inform decision-making based on quantitative techniques
- Leverage advanced skills and knowledge to succeed as a benefits administrator
Many employers offer opportunities for continuing education. It may be possible to gain an entry-level position with a bachelor’s degree and use tuition assistance to pay for a master’s degree.
Do You Picture Yourself As a Benefits Administrator?
For those with a desire to help others, good analytical abilities and excellent interpersonal skills, a benefits administrator career could be a great choice. Other critical traits in this field include leadership competence as well as strong written and verbal communication skills.
While some of these skills are innate, aspiring professionals can learn and develop the skills needed to excel in all business manager roles through specialized studies and experience. Florida Tech’s online BA in Business Administration – Management program provides the foundation to embark on an exciting career as a benefits administrator.
Learn more about Florida Tech’s online BA in Business Administration – Management program.
