Administration of employee benefits is a core function of a company’s HR department, from managing health insurance to overseeing financial plans to tracking paid vacation time. Some smaller companies use manual methods like spreadsheets and email for managing key tasks, though many businesses have basic software to facilitate certain processes. Other enterprises, especially large organizations, implement benefits administration technology as a component within a broader HR platform that includes payroll, and time keeping functions.
In any event, other than HR staff, few personnel members actually see the inner workings of or realize how benefits administration works. However, if you were to ask your employees about their experience in dealing with this aspect of HR, many will be happy to provide their unique perspective.
Manual benefits administration is outdated and cumbersome.
They may not visit the HR department every day, but employees know the drawbacks of manual administration of benefits. When they have questions about plan details or coverage, they often wait while an HR staff member accesses the information manually and cross-checks details with other systems. In addition, there are hoops to jump through when they need to make changes to personal information or update their employee profile based on life events. Manual benefits management is not just a burden on the HR department; it’s also a headache for employees.
Benefits technology streamlines management.
Benefits administration involves managing coverage by different providers and plans, including financials and health insurance. HR departments must meticulously track which employees are involved in which plan, a complicated process if it’s not organized properly. Responding to questions or changing personal information is possible with just a few clicks for businesses that have implemented benefits technology. From an employee’s standpoint, the management function is simplified and efficient.
There’s a convenience factor of benefits technology.
Many members of your team are quite savvy when it comes to technology, so it can be frustrating to wait for information they know how to access themselves. More companies are opting for an employee self-service feature when implementing or upgrading benefits technology. The convenience allows personnel to create a unique login and profile, so they can check the status of benefits themselves. They can find out the number of paid time off days they’ve accrued without a visit to HR.
Plus, if benefits technology is implemented as a Web-based platform, employees can access their profile from any connected device. They can check benefits and make changes from home or their mobile device instead of at the office.
Employees prefer the higher security levels.
Because administration requires access to and management of sensitive personal information, employees prefer benefits technology. Cloud-based systems are secure, as the hosting service typically has many layers of reliable data security and encryption. Your employees can rest assured that highly sensitive details on finances and personal health aren’t sitting in a cabinet to be viewed by others at will.
Whether you’re still using certain manual processes for benefits administration or moving ahead with implementation of more advanced technology, it’s important to get some insight from your employees. They’re very aware of how benefits technology impacts their ability to access personal information and manage their plan. At Paypro, we offer solutions for companies of all sizes and budgets, enabling them to capture gains in benefits administration and streamline management.