The administration of employee benefits is a critical HR process that most organizations need to maintain, however, despite its importance, there are many businesses that still struggle to streamline the benefits administration process.

For many businesses, the answer to many of their issues is the adoption of an all-in-one benefits management solution that promises to free up the time of HR teams and improve workflow efficiencies.

Unfortunately, not all of these “solutions” are created equal, and while some of them may help to simplify certain elements of the benefits administration process, many times they may be lacking in their ability to fully automate certain processes and can often lead to more manual efforts than they promise to streamline.

This is why it’s important to make sure you’re choosing the right benefits technology solutions that will give your teams back valuable time they need to meet the needs of the business.

Common Challenges in Benefits Administration

Too Many Administrative Burdens for HR Teams

Becoming overly-reliant on manual processes in benefits administration can become a major drain on HR productivity. When teams are spending their time executing repetitive tasks like data entry or verifying information across different platforms, it not only limits an HR team’s ability to stay focused on more strategic initiatives, it can also lead to a number of errors.

Manual administration errors can lead to a lot of lost time fixing miscalculations of payroll deductions or inaccuracies in enrollment details.

Having to convey the details of intricate benefits plans to employees can also quickly become cumbersome to HR teams without the help of self-service solutions or the availability of decision-support tools. This not only impedes the employees’ ability to make more informed choices on their benefit elections, but also slows down HR administration processes.

Compliance Management

Compliance management can be another complicated area for HR professionals to navigate. For organizations that fail to comply with these regulatory standards, it can lead to severe consequences, including various financial penalties, legal issues, and damage to the business’s reputation.

Some of the complications that compliance management can introduce to businesses and their HR teams include:

• Staying Ahead of the Curve: New laws and regulatory requirements are constantly changing, which can make it challenging for HR teams to stay informed and ensure their practices are up to date.

• Minimizing Risk: Non-compliance issues can expose organizations to a variety of risks. From financial losses due to penalties to legal battles and reputational damage, the consequences of failing to adhere to regulations can be severe.

• Safeguarding Sensitive Data: Protecting employee data is critical to benefits administration. Compliance regulations often require strict data security measures, making it essential for organizations to have carefully implemented benefits administration systems in place to safeguard this sensitive information.

Low Employee Engagement

Making sure your employees are engaged with the benefits enrollment process is critical to help foster a streamlined approach. However, when an employee doesn’t fully understand all of their options or is confused during the enrollment process, it can lead to wasted time and effort for everyone involved.

Many times, benefits plans can be filled with industry jargon that leaves employees confused or overwhelmed about all of their options and which benefits coverage choices are in the best interest of themselves and their families. This can lead to missed opportunities for employees to make optimal choices that will inevitably impact their overall satisfaction and engagement with their employer in the long term.

The Features You Should Be Looking For In Benefits Technology

To overcome many of the challenges associated with benefits administration, many organizations rely on benefits technology solutions to simplify their workflows. However, it’s important to make sure that you’re investing in best-of-breed benefits technology when looking to maximize automation, accuracy, and consistency in benefits administration.

Below are some of the features you should be looking for in a benefits technology solution:

Seamless Implementation Capabilities

Having a smooth implementation process for your benefits technology is critical when trying to minimize disruptions and ensure a positive user experience from the very beginning. The optimal benefits technology should seamlessly integrate with existing HR systems and allow for easy data migration.

In order to achieve this, a well-structured implementation plan is essential. Your benefits technology partner should work closely with you to gather necessary plan requirements, as well as establish payroll, carrier, HCM, and other integrations.

Benefits technology partners should provide ongoing support of your solution while helping to provide adequate training and resources to your HR team so they’re able to effectively utilize their new system.

Multi-Device Support

It's essential for benefits technology to offer multi-device support to employees. Many employees prefer to be able to access and manage their benefits information anytime, anywhere, from any of their smart devices. Ensuring your technology supports this can be a great way to add more value to your benefits offerings and simplify benefits application processes.

Mobile apps are also a great way to improve accessibility and convenience. Employees can view their Summary of Benefits Coverage (SBC) to make informed benefits choices and access decision-support tools as needed. This empowers employees to make smarter decisions about their benefits, which often leads to increased satisfaction and utilization.

Employee Education and Decision-Support Tools

To unlock the full value of benefits offerings for employees, education is key. Many individuals find it challenging to fully understand their options or adapt to coverage changes.

A best-of-breed benefits technology solution can bridge this gap by providing employees with valuable resources and educational tools. This can include interactive plan comparisons, informative videos, and various other decision-tools.

By offering these resources, companies empower their workforce to make well-informed decisions about their benefits. This not only improves employee satisfaction but also leads to more effective utilization of available benefits.

Use the Right Benefits Technology Solution In Your Organization

Just having a benefits technology solution isn't a magic bullet for streamlining workflows and boosting HR efficiency. Investing in the wrong solution can actually lead to outdated or lackluster platforms that hinder the productivity of your HR teams.

If your HR team is bogged down by inefficient workflows and support processes, it's time to take a closer look at your technology stack. By implementing a best-of-breed benefits administration system, you’ll be able to significantly enhance your benefits management processes.

Frank Mengert continues to find success by spotting opportunities where others see nothing. As the founder and CEO of ebm (www.getebm.com) a leading provider of employee benefits solutions, Frank has built the business by bridging the gap between insurance and technology-driven solutions for brokers, consultants, carriers, and employers nationwide.