Benefits administration is an important process that many businesses need to manage. However, many of those businesses continue to face challenges.
Having the right benefits technology solution in place can make all the difference in maximizing a business’s productivity levels while giving HR teams the valuable time they need to carry out other important operational requirements.
Common Roadblocks Companies Experience When Administrating Benefits
Today, there are many solutions businesses can adopt to improve the process of handling their benefits administration. However, even when certain investments are made in various technology solutions, many businesses still struggle to manage their benefits processes effectively.
Some of the common roadblocks businesses often face include:
Too Many Manual Processes
While some HR teams may view the workflows associated with benefits administration as something that needs to be done manually, the truth is this can create a significant drag on efficiency and productivity levels.
For example, when entering or updating employee benefits information, it often involves collecting data from various sources, entering into different platforms, and then making sure all the information is accurately transmitted. This not only consumes valuable time of HR teams, but managing so many touch points also increases the risks of errors.
Manual processes, are often a product of using inadequate technology or not fully realizing the benefits of using a more automated system.
Working Through Complicated Benefits Programs
Over the years, benefits programs have become more complex – featuring a wider variety of plan options and eligibility rules.
When HR teams don’t have a solution in place that is adaptable enough to the changing requirements of modern benefits programs, it leads to clunky workarounds or manual data entry. This can lead to more errors and wasted time.
Understanding Various Compliance Regulations
Staying compliant with changing benefits regulations can be a significant challenge for companies. The landscape is constantly evolving, with new regulations being released and existing ones being amended. From the Affordable Care Act (ACA) to the Consolidated Omnibus Budget Reconciliation Act (COBRA) and the Employee Retirement Income Security Act (ERISA), organizations must adhere to a variety of rules and reporting requirements.
Failure to comply with industry regulations can result in expensive fines and potential legal issues. Understanding all of these requirements can often be difficult for organizations that don’t have the right partnerships or solutions in place to help them manage it.
Not Enough Engagement from Employees
Another issue that can impact an organization’s ability to streamline its benefits processes is a lack of engagement or understanding from employees regarding how their plans are structured and work.
Employee engagement during the benefits enrollment process can be lower due to a lack of understanding or simply forgetting about their plan options during the enrollment period. This lack of engagement can lead to employees not taking full advantage of their benefits, which can impact them throughout the year and lead to less returns on the business’s investments in their employees’ well-being.
Strategies for Streamlining Benefits Administration
In order to make sure you’re able to streamline your benefits administration, there are some important strategies you should work to implement.
Using The Right Benefits Technology Platform
In order to get more efficiency out of your benefits administration process, it’s important to consider how well your benefits technology solution is performing.
While there are many solutions available to help manage employee benefits, many of them lack the comprehensive features that your business requires.
It’s important to place a high priority on teaming up with the right technology partner with a proven track record for success in the benefits administration space. By taking the time to understand your business’s needs and having relationships with vendors and providers, benefits technology partners can guide you toward the optimal solution and maximize the value of your benefits program.
Automating Various Enrollment Processes
Open enrollment periods can often present a number of unique challenges for HR teams. Many times, employees may not have all the information they need to make decisions regarding their coverage, and the amount of administration that can come with tracking and managing all of the necessary changes can be incredibly time-consuming.
Leveraging the automation capabilities of benefits technology can significantly reduce the strain placed on HR teams. Centralized platforms can seamlessly integrate with your existing HRIS, HCM, insurance carriers, and payroll systems. This interconnectedness ensures that any changes made during enrollment automatically synchronize across all relevant platforms.
Using more automated processes eliminates the need for manual updates on multiple systems, saving countless hours and reducing stress
Providing Educational Resources for Employees
Employee education and support are essential for maximizing the value of benefits programs. Many employees struggle to understand their options or navigate changes to their coverage. Best-of-breed benefits technology platforms can address this by giving employees access to helpful resources or educational tools. These may include plan comparison charts, informative videos, interactive content, or FAQs.
By providing these resources, companies empower employees to make informed decisions about their benefits. This not only increases employee satisfaction but also leads to better utilization of benefits.
Get the Most Out of Your Benefits Technology Solution
Simply having a benefits technology solution in place, doesn’t automatically translate to more streamlined workflows and increased efficiency for your HR teams. Since not all technology is created equal, investing in the wrong solution can actually slow down productivity.
If your HR team is struggling with inefficient workflows and supporting processes, it may be time to reassess your technology. Integrating a best-of-breed benefits administration system can offer the automation and integration capabilities necessary to significantly improve your benefits management processes.
