It's likely one of your top two largest operating expenses is your employees. The people that work for and with your company are valuable assets that must be protected. For this reason, human resources departments have a lot on their hands, from hiring and recruiting to benefits administration. Today's technology provides businesses with the opportunity to streamline and automate more processes so that their employees can really focus on their core responsibilities. Here are the various elements of employee administration that you can automate and why doing so could prove to be more than a little beneficial for your business's bottom line.
Benefits administration can cost your business more than you bargained for. Not only is your business responsible financially, there's also a significant time investment that comes with benefits administration. Automating benefit plan enrollment can save your human resources team time and help your employees more easily manage their own benefits. A 2009 Forrester study found that a comprehensive benefits automation solution achieved a 410% risk-adjusted ROI. As your employees reach an age where coverage options change, automating the change reduces time spent by your human resources department monitoring the status of each individual employee. Small businesses are falling behind larger companies when it comes to automated benefits administration.
This is especially the case with self-billing. According to a 2012 study from bswift, 4% of small companies self-bill while 29% of larger companies (more than 500 employees) do. bswift also found that 30% of employers continue to receive and manually reconcile paper health insurance bills. Not only can the manual efforts lead to a greater risk of human error, it also pulls attention away from other human resources responsibilities. Billing employees and working with your insurance provider can be a time consuming process. Automating bill reconciliation, coverage amounts premiums and employee deductions can save your human resources and accounting teams time, money lost to error, and expedite the billing and payment processes for your employees.
New Hire Enrollment
The bswift study also found that new hire enrollment is one area with significant opportunity for improvement, with 34% of employers still relying on paper rather than online employee self-service. When a new hire's enrollment window is closing or if their enrollment is incomplete, it's often the human resources manager's role to remind the new employee of their status. However, an online self-service option through your insurance provider or an automated HR system can reduce the manager's time spent on reminding employees of their status. Getting your new hires going on the right foot can make a big difference in their levels of satisfaction and engagement. Automating their enrollment can help their transition into your company and culture much smoother.
Related: 4 Steps to a Successful HRIS Audit
The right human resources software solution can help you help your human resources department. Streamlining process and automating benefits administrative tasks will allow HR managers to stay focused on the goals and objectives your business has set forth, including increasing employee engagement and job satisfaction rates as well as recruiting and hiring and top talent. Leave the benefits administration to an effective HR software and you'll find you're able to reduce costs associated with HR while increasing the department's efficiency.
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