© 2007 Wiley Periodicals, Inc. Published online in Wiley InterScience (www.interscience.wiley.com). DOI 10.1002/ert.20176 It’s a given that employees value their benefit packages as key components of their work/life experience, but for both employees and employers, there’s more to the picture than merely acknowledging the importance of benefits. Increasingly, employers need to know how the members of their workforce view their benefit offerings—indeed, the perceived value of various benefits may change over time—and how the management and administration of those benefits may affect employee satisfaction and engagement in a positive or negative manner. Clearly, a successful benefits strategy can play a major role in recruiting and retention efforts, as well as improving employee attitudes (and well-being) and driving strong business results. The role of employee benefits has evolved significantly from the time when new hires were simply told of their health insurance, pension, and other benefit options almost as an afterthought to employment. As healthcare costs have soared and cost sharing has become the norm, and as defined-benefit (DB) plans have been replaced by definedcontribution (DC) plans, the employee-benefit landscape has become a more complex terrain. For both employer and employee, managing benefits is a challenge that requires a strategic approach and access to specialized resources. Not surprisingly, an outsourced solution for benefits administration has become a strong option for organizations. An approach that meets this challenge is total benefits outsourcing (TBO). A TBO solution answers employers’ need for expert, fully capable, and technologically robust administration of benefits while addressing employees’ need for comprehensive educational programs, decisionmaking tools, and self-service resources. The benefits of TBO—which is best defined as an integrated approach, typically consolidating DB, DC, and health and wellness administration services with a single outsourcing provider—are becoming more evident to employers. In fact, TBO is one of the fastest-growing segments in the HR outsourcing market, and industry analysts forecast significant growth over the next few years. It’s a trend driven by the increasing complexity and cost of managing and delivering benefits, and it is further propelled by a desire to provide a better and more comprehensive benefits experience for employees as a means of attracting and retaining a trained and qualified workforce in an increasingly competitive market. On the most basic level, a TBO strategy creates economies of scale by bundling multiple benefits services with one vendor. Employers can outsource administrative, transactional, and employee support functions traditionally done in-house, allowing HR personnel to be redeployed to address more strategic issues. From the employee