Many benefits administrators know firsthand the challenges that come from using outdated or inefficient systems to manage the enrollment process. When old methods aren’t cutting it anymore, consider upgrading to an all-in-one benefits administration solution to increase efficiency, ensure compliance, and create a better experience — both for your employees and your human resources team.
Here is a closer look at some of the most frequently asked questions about benefits admin software to help you as you explore possible solutions for your business.
What Are the Core Functionalities of Employee Benefits Program Administration Software?
Benefits administration is the process of managing and determining employee benefits within an organization, which is facilitated by the functionalities of benefits administration software. Employee benefits admin is a huge undertaking for most businesses, but it’s essential to get it right. A smooth, stress-free benefits administration process can boost employee morale and increase their loyalty to your organization.
Fortunately, benefits administrators have some options for creating a seamless enrollment process. Among those options, benefits administration software offers a comprehensive platform to execute and manage employee enrollments.
While the core functionalities of benefits administration systems can vary, this software typically offers the following features:
- Enrollment Management: With enrollment management, employees can sign up for benefits plans and update their information during annual open enrollment periods or qualifying life events.
- Benefits Communication: The software can distribute information so new hires and employees understand the available benefits programs, eligibility requirements, and deadlines. This dissemination generally occurs through an employee self-service portal, targeted emails, or FAQs.
- Eligibility Determination: The system can automatically determine which employees are eligible for specific benefits based on criteria, such as employment status or tenure.
- Benefits Election: Employees can choose their desired insurance coverage levels and beneficiaries through the software.
- Billing and Administration: This software can automate billing for premiums, manage claims processing, and ensure accurate deductions from employees’ paychecks.
- Reporting and Analytics: By generating reports on employee enrollment trends, claims data, and other key metrics, this software can allow you to identify potential cost savings or improve plan designs.
- Compliance Management: The system can help ensure your organization complies with government regulations regarding benefits administration, such as COBRA and HIPAA.
What Are the Advantages of Using Benefits Administration Software for Your Benefits Package?
With all its functionalities, this software streamlines the management of a company’s benefits program, aligning it with the master employee list and ensuring compliance, which has many advantages for both benefits administrators and employees. When deciding whether it’s right for your business, consider these advantages.
Advantages for Employers
- Increased Efficiency: By automating tasks like eligibility checks, enrollment processing, and data management, you’re free to focus on more strategic HR initiatives.
- Improved Accuracy: Manual data entry has the potential for human error. Using software can ensure data accuracy through automation and built-in checks.
- Enhanced Compliance: The software can help track deadlines, maintain necessary documentation, and provide real-time alerts for compliance issues, reducing the risk of penalties.
- Cost Savings: Automation and streamlined processes can lower administrative costs and lead to significant savings.
Advantages for Employees
- More Convenience: Employees can access information, enroll in benefits plans, and make changes to their coverage through a user-friendly self-service portal, often accessible via mobile devices.
- Increased Transparency: Benefits admin software can provide clear and concise information about plan options, eligibility requirements, and costs, empowering employees to make informed decisions.
- Reduced Frustration: By streamlining the benefits enrollment process and eliminating paper forms, the software can reduce the frustration employees often experience with traditional benefits administration.
- Improved Communication: The software can educate employees about the benefits available to them, ensuring they stay informed about their options.
What Factors Should You Consider When Choosing Benefits Administration Software?
When selecting the right benefits administration system for your organization, consider some various factors to ensure you make the right choice. Depending on your company’s needs, these factors may include:
Features and Functionality
Think about the core features and functionalities you need from an employee benefits administration solution. Some common features to consider include:
- Supported Benefits: Make sure the system supports the benefits you offer employees, such as medical, dental and vision, retirement accounts, flexible spending accounts, and other benefits offerings, like pet insurance.
- Integration Capabilities: Check the software’s integration capabilities to ensure it will work well with the other HR systems you already use.
- Automated Tasks: Consider what tasks the system can automate, such as notifications and workflows. Some software can even automatically provide employees with assigned profiles they can use to choose their preferred benefits.
- Employee Experience: Think about the experience employees will have with this software. How easy is it for workers to compare plans, learn about contribution amounts, and make their elections?
Company Size and Needs
Factor in the size of the company as you choose the right software. Do you need a scalable solution you can keep using as the company grows? Additionally, know the budget you’re working with so you can find a solution that fits your needs.
Implementation and Support
Research the vendor to learn whether it offers implementation support and training for HR managers and employees. Also, consider what type of customer support the vendor offers. Reliable, responsive customer support is essential for addressing issues that may arise after implementation.
Security and Data Privacy
Since the software handles sensitive employee data, robust security features are critical. Ensure the software has a reliable data backup and recovery plan in place to protect against data loss. Additionally, make sure it securely transmits employee data to benefits providers.
What Kinds of Businesses Would Benefit from Using Benefits Admin Software?
Not sure if your company needs this software? Employee benefits software can be useful for a wide variety of businesses, including:
- Businesses with a Growing Workforce: As a workforce grows, managing employee benefits manually becomes more cumbersome and prone to errors. Using software can automate tasks and ensure accuracy, saving HR time and resources.
- Businesses with Complex Benefits Packages: Companies offering a variety of health plans, retirement savings accounts, and other benefits can leverage the software to manage these complexities effectively.
- Businesses with Remote Employees: Benefits administration software with a self-service portal allows remote workers to enroll in plans and update their benefits, no matter where they live.
- Businesses with Limited HR Resources: Small- and medium-sized businesses with limited HR staff can benefit significantly from the timesaving features and streamlined processes of this software.
- Businesses Facing Regulatory Compliance Challenges: The software can help ensure compliance with relevant regulations, reducing the risk of costly penalties and administrative burdens.
Does Benefits Administration Software Integrate with Other HR Systems?
Integration with other HR software is a key feature of many benefits administration systems. However, not all software offers the same level of integration. Here’s what to consider when evaluating integration capabilities:
- Supported Integrations: Ensure the software integrates seamlessly with your existing HR systems, including payroll, applicant tracking, and learning management systems.
- API Availability: An open API (application programming interface) allows for easier integration with custom HR software or future additions to your HR tech stack.
- Data Security: When evaluating integration, data security is paramount. Make sure the software uses secure protocols for data transmission between systems.
Partner with Axiom for Benefits Administration Software Solutions
Are you ready to upgrade the benefits admin process for your organization? Axiom Human Resources’ benefits administration software – powered by UKG Ready – can transform the way you offer and administer employee benefits packages, streamlining this complex HR process and improving the employee experience.
Contact us today for more information about how you can take the next step toward an integrated solution for employee benefits administration.
