3 Things to Consider When Selecting an Employee Benefits Technology Provider
The scope of work of HR professionals can be complex. They handle payroll, employee time tracking, workforce management, benefits administration, and more.
HR technologies, such as employee benefits technology, make life easier for companies and help them overcome the most common challenges. Using these HR solutions allow businesses to streamline their benefits services and other HR tasks, providing good overall support for their workforce.
The positive impact of HR technologies convinces companies to keep investing in them. In a study last year, employers said that, on average, they spent $483 per employee annually on HR technology because of its benefits. The study also revealed that 27 percent of HR professionals increased their budgets for HR technology, while 61 percent said that their budgets were unchanged.
Evaluate Your Needs for Employee Benefits Technology
Choosing the HR technology for your company is a high-stakes decision process. To start, you need to assess what you really need. You must determine if you need the technology to reduce costs, increase efficiency, replace an old HR technology, or facilitate communication between HR and the workforce.
1. What Level of Engagement and Communication Do You Need?
According to a recent study, HR technology is shifting from a system of records to a system of design. This means that these business solutions will not only be used for centralized HR tasks but become a work technology that improves the overall employee experience.
In a break from old-style employee portals, vendors are now providing separate interfaces that promote employee engagement. These interfaces focus on learning, communication among peers, making most of wellness benefits, and more.
Overall engagement will continue to improve, and these new HR technologies will play a vital role in retaining excellent talent and attracting new hires.
2. Can the New Benefits Technology Address your Employees’ Needs?
When selecting a benefits technology provider, you also have to think about the diversity of your workforce. You likely have employees of different cultural backgrounds, educational levels, and ages, and you cannot ignore their different needs. Find out from the vendor how diverse their options are, and if their HR solutions are offered in languages other than English.
Since your aim is better employee experience, you also have to know if your workforce will be able to access the new benefits solutions from devices such as smartphones and tablets.
Consider HR Engagement and Other Requirements
Whether you have a whole team of HR pros or you are a one-person HR department, a new benefits or HR technology should help you get your job done and not make your life more difficult. You have to take steps to ensure that you are getting a solution that will meet the requirements of your business.
1. Learning the Product and Possible Integration into Your Existing Systems
HR technology vendors should provide training to you and your team. Inquire if this is already included in the price or if this will cost you more.
Unless you are getting an all-in-one HR enterprise solution, you might need to integrate your HR technology into your existing systems. Ask the vendor if this can be seamlessly done. If you have more than 100 employees, it might be wiser to get a new solution that can easily integrate into an existing technology. You can avoid complications such as duplicate data when you take this route.
2. Data Security, Compliance, and Account Management
Your top priority when hiring HR tech vendors is assessing if they have a good security strategy in place. You need to protect your employee data. Find out what kind of end-to-end security measures they have, what certificates they possess, and if they have cyber insurance.
Compliance is another big aspect that you need to discuss with a potential benefits tech provider. The new technology should make complying with current laws easier for your HR team. Find out what compliance-related documentation or reporting can be done using their product.
You also need to make sure that the employee benefits technology will be easy to manage and maintain. The provider should have a dedicated support person to help you in case of issues with the system.
Features to Look For and How They Affect Cost
When acquiring a new HR technology, you need one that is user-friendly and flexible. These solutions should help you streamline the administration of benefits and help improve employee engagement.
You want a solution that can help you easily administer employee benefits end to end.
Some features you should consider include the following:
Benefits planning
Online benefits enrolment
Benefits payment
Benefits reporting
Record keeping
Payroll
Auditing
Policies and procedures guide
It should be a platform where employees can easily access information about their benefits whenever they want to and wherever they are. An employee benefits technology solution should also be a tool for communication between the managers and the workers. It can also be a channel for educating employees about their benefits.
Other desirable features include:
Integration with benefits providers
Benchmarking tools
Benefits reconciliation
Data analytics
The more features you want in an HR tech solution, the higher the cost. The employer can shoulder the total cost, but technology is an enabler, allowing you ways to offset expenses. Offering voluntary benefits is one way to spread the cost between the employer, employees, and voluntary benefits carrier.
At little to no cost, employers can offer coverage that the employee will pay for through salary-deferred contributions. These voluntary or supplemental benefits such as critical illness insurance, identity theft protection, or even pet insurance are seen by workers as essential parts of their overall benefits package. With happy workers, employers can expect better productivity.
Partner with a Trusted Name in the Employee Benefits Technology Industry
By selecting the best employee benefits technology provider, small businesses ease the burden of daily HR tasks.
Contact Benefits Concept, Inc. (BCI), today and let us discuss a partnership that will make your benefits programs one that creates an engaged, informed, and protected workforce.
NOTE: This content is not intended to be taken as legal, benefits, or HR advice. Since regulations change over time and can vary by location and employer size, consult a licensed broker or HR certified expert for specific guidance.