5 Key Ingredients of Employee Benefits Administration Software
It wasn’t long ago that the Human Resource Department of companies were entrusted with the duty to explain benefits schemes and assist staff members to register in a plan. Considering that the employee benefits programs were quite straightforward, it was a convenient way. However, as technology evolved and employee benefits became crucial in retaining and attracting skilled employees, employers sought a platform that can educate the workers about benefits. Hence, employee benefits administration software were introduced. They become a reliable source for the management team to connect with their teams, spread the word about new and innovative benefits plans, ensure smooth operations, and make the whole system computerized. No wonder why employers embraced these benefits administration tools at once, regardless of the organization’s size.
These portals helped companies offer meticulously designed plans to employees along with adhering to government rules and regulations. The software had all the details regarding insurance plans, stock options and also allowed for modifications in the health benefits packages. Now, employees can directly manage and view the benefits plans and update their personal details within no time. With more and more software flooding the market every day, business owners are finding it difficult to get their hands on one platform that is reliable and worth investing time & money.
Do you find yourself on the same wavelength? Then here are 5 key features that every benefits administration software must possess to offer complete automation. Have a look:
Being compliant can be a complicated task and employers need to be on their toes to ensure that they fulfill all the government rules and regulations. According to the study, “Benefits Balancing Act” by the Guardian Life Insurance Company of America, 60% of employers struggle with keeping up with their benefits programs considering a gamut of reporting and compliance requirements that they need to meet from time to time. This gets even tougher for companies with more than 100 employees as they face a hard time updating carriers, the latest news, coverages, employee enrollment, and communication.
An effective and reliable benefits administration software covers labor laws, medical mandates, financial rules, and other compliance-driven activities. If handled properly, these platforms can avoid legal exposure and risks seamlessly. An SHRM report states, “Managers responsible for compliance with legal mandates (such as COBRA or the Family and Medical Leave Act) use systems to monitor employee status, payment, and eligibility for health care benefits…programs [which can] carry significant financial penalties for noncompliance.” A reliable tool can keep an eye on all the changes, thus, helping organizations keep pace with regulatory updates.
Payroll Process Integration
Does your business still rely on manual or traditional technology to complete the payroll process? Then you are certainly putting your data and yourself at risk. It is not only consuming long hours but even a small mistake to comply with government rules can lead to a hefty penalty.
If your benefits administration lacks payroll integration, then it can delay the benefit disbursement process, increase the chances of employee churn and inaccurate payslips. Hence, the ideal solution is integrating benefits software with the company’s payroll system. Along with reducing time and resource wastage in duplicity of data, the integration will also have a direct bearing on employee benefits, such as pre-tax Health Savings Accounts, 401k contributions, etc.
Trusted Data Management
A powerful data management system can make a technology stand out and lay the foundation for its success. In the absence of accurate data, it is nothing more than an unreliable platform that is prone to failures regardless of its innovative design and front-end experience. Therefore, it is important that the benefits administration software comes with a trusted data management system. It must be competent enough to deal with a huge amount of data easily and also check the accuracy and logic while keeping all the errors at bay.
On the contrary, flawed technology can lead to coverage problems and long-term enrollment which are too tricky to resolve. Moreover, you may end up losing the trust of your employees, stakeholders, and executives who rely on accurate reporting. So, make sure that you don’t compromise with the competency of your employee benefits system. Seek quality testing service before you launch the platform to know if it meets your expectations as it is the crucial factor to address benefit challenges, plan future strategies, and meet the current needs.
Employee Self-Service Portal
Another significant feature that you need to ensure while selecting employee benefits administration software is the Employee Self-Service (ESS) Portal. Your primary motive to invest in software is to save your time and effort of your staff while boosting their efficiency. Thus, it is essential to have a platform that offers easy accessibility to employees.
They should be able to make changes in their personal details, search necessary information, and register for the appropriate plan conveniently. Apart from gaining the trust of workers, such benefits portal will provide them with job satisfaction and reduce the workload of the HR department. As employees can directly sign in to the portal to send issues or requests and update the changes, the chances of errors and dual entries will be minimal.
Now that you have decided to hire software development company, here is the checklist you must go through: Checkpoints to Tick Before Hiring a Software Development Company
Keeping up with your growing business and evolution should be one of the top qualities of administration software. Whether you plan a further expansion or opt for acquisitions, your company will surely expand in the coming years and a lack of scalability can be a stumbling block. These inefficient systems are unstable and inflexible, comprising technology that is prone to crash or malware.
Introducing a small change, such as compliance, tax amendments, data configuration, etc., can put a strain on your budget and also hamper the operational capacity. So, buy technology that remains viable over time and adapts to the small or big changes smoothly. From the change in organizational structure to company size to the number of employees, it should work seamlessly without any technical glitch. Such software is also a one-stop destination for various HR and technology services ranging from payroll to Human Resources Information System (HRIS).
Now that you are familiar with the 5 primary ingredients that make a benefits software stand out from others, make sure that you invest your time and money rationally. A best-in-class benefits platform will go beyond administration and enrollment functions. It will take the benefits plan to the next level to improve outcomes and boost efficiency by adding value to your schemes. And most importantly, the right solution will provide you, your employees, and your business with opportunities that really matter.