6 Advantages Of Employee Benefits Automation
How important are benefits to your employees? Studies have shown that almost 80% of employees would rather have new or additional benefits instead of a pay increase and employees would stay with an employer who offered benefits rather than the other employer who offered more pay.
An automated benefits system serves its purpose as a cost-saving tool for companies. By reducing administrative work and increasing accuracy by automating manual processes, companies can run more cost-effectively, and benefits will be more valued by employees.
Here are six advantages companies can derive from the importance of employee benefits automation.
Increased efficiency for both employer and employee
Automation of benefits system can greatly increase efficiency for both the administrator and employees using it. Many companies are still having their employees filling out paper forms or Excel spreadsheets, where the administrator still must manually enter in the payroll, HR, and health insurance system. With a full suite HR system, employers and employees can save precious time to focus on real work for better productivity.
Human error happens frequently and the action of employees manually entering information into multiple systems is the biggest culprit. These problems can quickly escalate out of control, causing companies heavy penalties and fines, which leads to a bad reputation. With an automated benefits system, companies can reduce the risk of human error as data is centralised and administrators can have easy access to necessary reports.
The need for companies to keep pace with local and global regulations is heightened with the focus on transparency and accountability employees’ demand. Companies can give the assurance that employees seek by implementing an open and standardised approach in a fully integrated HR system.
Greater employee satisfaction
Making employees’ jobs easier naturally increases your employees’ satisfaction levels. More employee engagement also means higher productivity for the companies.
With employee engagement platform, you can foster a positive work culture where collaboration and teamwork thrive. Investing in a well-integrated HR system can help companies in attracting, developing, and retaining valuable top talents while saving time and cost.
Ease of convenience
With the pandemic, companies are allowing employees to work remotely and have flexible schedules. Hence, there is an increasing need for an automated employee benefits system where employers and employers can have access to 24/7. This allows administrators to make updates and changes when necessary, so employees can be notified in the shortest time.
Integration of data
Maintaining one unified system means integrating HR, benefits, and payroll functions, which helps companies to eliminate duplication and error. Having a built-in General Ledger (GL) interface for the benefits module in the HR system can automate the payroll process and ensure data accuracy.
With an automated benefits system, employees can learn, view, and apply benefits claims specific to their eligibility. All transactions can be seamlessly transmitted to payroll, ensuring accurate payroll deductions. The service and support a company receives when setting up an automated benefits system are also of vital importance. Without smooth implementation and good ongoing support, automation success and cost savings can become much harder to achieve.
As the talent market grows increasingly competitive, companies are also increasing their focus on employee benefits as a tool to attract and retain top talents. In the world today, rewarding your employees is more than just improving their monetary gains, employees want to be rewarded in ways that benefit their overall wellbeing and lifestyle. By doing so, it creates a win-win situation where companies can reap the rewards of motivated, loyal, and productive employees.