Human resources has slowly moved away from being a paper driven industry to an automated, system-driven one. Not all organizations know how to tell if a “system” is right for them, though. In some companies, the current way of doing things is steeped in tradition and the thought of abandoning the familiar is daunting. Factor […]
Human resources has slowly moved away from being a paper driven industry to an automated, system-driven one. Not all organizations know how to tell if a “system” is right for them, though. In some companies, the current way of doing things is steeped in tradition and the thought of abandoning the familiar is daunting. Factor in the potential cost of an automated solution, and many businesses simply choose not to go down that road.
Benefit-administration systems will differ, but they generally provide a number of features or “modules” including:
- Employee onboarding
All the paperwork that employees are required to review and sign when hired (payroll forms, policies, company information)
- Automated employee benefits enrollment
Employees can enroll in or change their benefit elections upon hire, during open enrollment, or when they have life event changes (marriage, birth/adoption of a child, etc.).
- Enrollment feeds to benefit carriers
Send enrollment files directly to benefit carriers.
- Document storage and compliance
Build a library of company and other required documents that employees can access at any time.
- Data tracking and reporting
Track when employees complete steps in the system and run reports of information per employee or per benefit.
Implementing any of these features can make a bottom-line difference for your business. You’ll save time by automating previously labor-intensive processes. You’ll save paper and file space by storing documents electronically.
You’ll also increase the frequency and quality of communications you have with your employees, by auto-generating email messages they need and want. Enrollment-period notices, reminders for necessary benefit-related tasks and periodic updates can all be set up in advance. Benefits-administration systems can be set up to give employees’ access to their employment and benefit information as well, including their job titles, beneficiaries, withholding allowances, pay rates, and more.
Your payroll provider may already have a benefits-administration module that will feed information from your company’s payroll and require minimal setup. Standalone benefit-administration systems are also available for purchase, some with the ability to integrate with certain payroll systems. You can often customize which modules you’d like to purchase for your company, giving you more power over your buying process. I certainly recommend partnering with an expert to help you choose which systems are right for you — since the options are so customizable, you’ll want to be sure you’re getting what your company needs.
Jackie Penfield, SPHR, is a human resources & employee benefits consultant for OneGroup Benefits Consulting Group. She holds a bachelor’s degree in business administration and human resources from SUNY Oswego.