When you sit down with your company numbers for 2021, you’ll immediately look for two key things. How did you do in sales, and how much did you spend to get there? Those figures will serve as platforms for developing new strategies in 2022 to reduce administrative burden. Ask yourself how you can use lessons learned during 2021 to increase sales, grow, and scale.
Today, we’ll help you zero in on the ways to eliminate administrative costs that might be weighing down your company’s efficiencies. What once used to take a whole team of employees and manual labor to accomplish might now present digital and more streamlined processes. Reducing these costs will only make sense if they align with your company’s overall productivity objectives. And you have employees to consider, as well. These three areas tend to be the most common places to start eliminating administrative burden.
1. Operational Efficiencies to Eliminate Administrative Burden
Many business owners start to identify areas of improvement by looking at the processes associated with the core offerings. What equipment, software, and manpower are required to complete the task or produce the result? Can you spot better ways to reduce some of the overhead costs associated with those operational steps?
Adopting Better Software
In today’s digital landscape, and especially in the wake of the pandemic, software solutions present the best opportunities for operational cost efficiencies. Talk with your teams and managers about what areas of their workload are burdensome. What administrative steps, for example, are bogging down your sales staff? Can you use software to make smarter use of data? And don’t be afraid to innovate by creating software solutions to fit your unique business dynamics. A software investment today can reduce administrative costs for the long term.
Introducing Efficiency-Focused Apps
Not every business model needs an app. But there are unique apps that can help reduce the administrative sides of your business. Some can help improve your company culture. Others can help your payroll teams process timecards. And those companies that employ field reps have a robust menu of streamlined apps for use on-the-go available.
Upgrading Outdated Equipment
To make an obvious example, imagine a dry-cleaning business that still uses manual irons. It’s a prime scenario in which an upgrade of equipment would make the most sense. Look at the equipment you’re using now. If there are opportunities to make upgrades that will significantly reduce overhead and administrative burdens, take them! These investments can greatly accelerate your productivity and reduce costs simultaneously.
2. Internal Employee-Facing Efficiencies
A second key area to explore when looking to reduce administrative costs is employee management processes. Can you streamline efficiencies internally that can make an impact on your bottom line?
Introducing an ICHRA
One of the biggest expenses you have might be the costs associated with health insurance for your staff. If you’re still overspending on the tired, one-size-fits-all approach to health benefits with a group plan, it might be time to explore your ICHRA options. These customizable, budget-friendly health reimbursement platforms are changing how companies invest in their teams. And the reduced burden to benefits coordinators is just another advantageous benefit.
Transitioning to Employee Managed HR Data
Sit down with your Human Resources managers and talk to them about their processes. You might be able to explore a series of digital solutions in the form of managed data platforms. Some of these app-based solutions allow employees to manage their own time, data, and personal information, eliminating the added administrative burden on your HR teams.
Adopting More Permanent Remote Working Options
Since the pandemic began, company leaders are recognizing that it’s indeed possible to get the job done with a remote workforce. And it’s possible that you can find ways to reduce the cost of in-person working by embracing even a partial remote-working schedule. Maybe you no longer need a satellite office for sales teams who can work from a home office. You could theoretically eliminate rent, utilities, and overhead for unnecessary office space.
3. Outsourcing to the Right Partners
What you can’t upgrade with software or equipment, you might be able to outsource for less. Some of your company processes, either operational or internal, might be more efficient and affordable if you turn the reins over to a trusted partner or outsourced vendor.
Delegating Operational Tasks
Some companies have been able to reduce their staffing burdens by working with temporary placement firms. Others outsource their internal payroll entirely. If you’re running a bakery, for example, instead of you and your teams delivering baked goods to clients, with added tasks of managing gas receipts and expense reports, maybe it’s more beneficial to outsource delivery services. Look for innovative ways to delegate those tasks that are costing your bottom line. And let the trusted partners do it for less.
Working with Quality Providers
On the vendor side of your business, you likely already have a roster of business operations that require partnerships. Take a look at your existing vendors and identify areas that might be negotiable for better rates. Maybe you can trade up for a higher quality service from them that helps eliminate administrative burdens on your end. Or maybe it’s time to change vendors altogether and enter into an arrangement with a stronger provider with better added value.
W3LL As Your Employee Health Insurance Partner
When it comes to selecting a company partner with the ability to reduce administrative burdens, you’ll want to explore the many advantages of working with W3LL. As a third-party administrator for your company ICHRA, our team can handle everything from submitting expenses to data and employee dashboard management. And when your staff needs help navigating the ACA Marketplace for available and affordable plans, W3LL can help, too.
If reducing overhead costs and administrative burdens is on your to-do list, start with these suggestions and explore your options. And when you’re ready to learn more about how ICHRAs work and what W3LL can do to help you realize a more affordable and better way to health insurance, contact us!
With nearly two decades in health insurance, Pete English’s diverse experience makes him uniquely qualified to help health plans and brokers leverage innovative technology in partnership with W3LL. From growing sales staff by 126% over 4 years at a large health plan, to building his own health insurance brokerage firm with over $7.2MM in annualized premium, Pete has done it all.