Benefits Administration - Meaning & Definition

Published by MBA Skool Team, Last Updated: December 21, 2013

What is Benefits Administration?

Benefits to the employees of a firm are defined as facilities like pension plans, life and medical insurance, vacation time and sick time, maternity leaves etc. benefits administration is a program or a process adopted by the companies to design implement manage and control the benefits to be provided to its employees.

A typical process may even have a software to maintain and manage the complete profile of the employee. It includes data like date hired, term of work, attendance, marital status etc. the program is designed in such a manner to keep in account the changes in government policies and also to ensure the full time and part time work of the employees. It is an easy method adopted to compensate the employee.

The aim of the program also lies in making the employee understand how the benefits work for him. It makes them aware of the standards and quality of work that must be performed to meet the benefits desired by him. Usually the HR Department is held responsible for doing the same. At the same time it should be kept in mind that the overall benefit program brings in some benefit to the company as well. The administrator of the program needs to be available to the employee and needs to keep in touch with various other departments like the payroll, insurance etc for the smooth functioning of the entire process.


Hence, this concludes the definition of Benefits Administration along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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