Benefits Administration Software: Why Does Your Company Need One?

Introduction

Benefits are perks given by an organization to its employees aside from their regular salaries. A Benefits Administration Software is a tool to organize all the benefits given to employees in the same place which makes it easy for stakeholders to access, manage, and use them.

You might have a lot of attractive benefits offered to your people. However, if they are not able to make use of these benefits at the time needed, then they are not of value. Integrating an effective Benefits Administration (BA) tool into your existing HRIS system will simplify the BA process and improve the efficiency of the HR team.

Check out the top reasons for using a BA software in your organisation.

Top reasons for using a Benefits Administration Software

Improves Employee Experience

As a part of management, the HR team always looks to improve the employee experience at work. Providing the employees with an integrated tool to check and avail all the benefits they are provided with is a great way to make employees feel important and cherished at work. Such a tool can also help employees make changes to their personal information and increase/decrease coverage plans anytime they want without having to depend on the HR team to help them out.

Compliance Management

If you have manually handled benefits administration before, you will know simply how many compliance terms and regulations you need to look into to understand the full terms of a benefit – information that will then need to be passed on to the employee. As a part of compliance management, you will also need to get multiple documents and forms filled and maintained to make sure there are no legal issues.With a BA software, compliance management becomes very easy. Vendors who offer such software also promise to make sure all compliance needs are met when you use their tool. Some vendors also pay you a certain sum of money as compensation if their tool makes a mistake.

Time-Saving

Do you spend considerable time every week answering queries your employees have about the various benefit policies you have? Do you have to spend hours following up on relevant documents and approving/rejecting requests? One of the most important advantages of BA software is offering all relevant information in an online portal and letting employees self-manage their benefits with minimal support from the HR team.

Automated Processing

Once the tool has been configured to your organization’s needs, it will be able to assess the profile of the employee and show relevant benefits only. The software can also auto-reject requests if they do not satisfy the basic criteria, as well as automate basic approval stages.If an employee increases their benefits coverage, then the BA software can communicate with the payroll software automatically and make the relevant deductions there. This particular feature saves immense time for the HR team.

Automated Electronic Data Interchange (EDI)

Once an employee signs up for a particular benefit, it is the responsibility of the HR team to ensure all relevant documents reach the carrier company. This is a very time-consuming process when done manually. When you choose the right BA software, the tool can automatically transfer files using EDI to the carrier in a matter of minutes.