5 tips for employee benefits technology solutions

Organizations are often turning to technology for their benefits administration as an efficient and compliant solution to manage the ever-changing world of employee benefits. The transition to digitizing benefits administration platforms can offer advantages in both management efficiencies and culture.

Based on current trends, employers that are more digital than paper-based in managing their benefits programs report higher levels of satisfaction for both employees and benefits administrators. In addition, workers who have a more digital experience when learning about, enrolling in, and using their benefits, tend to have more favorable attitudes toward the value of their employee benefits package.

The use of workplace benefits technology has seen significant growth in recent years with 80% of employers using a technology system/platform to manage some aspect of their HR or benefits functions, up from 70% 2017. Organizations that have made the change towards digital adoption have seen dual benefits — time savings for administrators and an increased confidence in benefits package satisfaction among employees.

“The right digital tools help people make smarter, faster decisions about their health, finances, and future, which actively supports their well-being. When you empower someone to care for their mind, body, and wallet®, you create a more resilient, productive, and loyal workforce,” says Dave Roby, Head of Technology and Specialty Solutions at Guardian.

Given the significant recent growth of workplace benefits technology, here are a few considerations that employers can keep in mind when either adopting or upgrading digital benefits platforms.

1. Establish your benefits technology objectives

Before getting started, clearly identify your organization’s primary motivation for reassessing its benefits strategy. Is it to move away from paper and convert all administration to digital platforms? Are you dissatisfied with your current benefit technology platform, capabilities, services, or cost structure? Or perhaps you’re scanning the market for new HR technology to help ensure that your current platform is still the best fit for your organization.

While doing your due diligence and researching which solution would be most appropriate for your business, it’s important to know that not all benefits platforms are equal. A platform’s ability to support different types of benefits and eligibility rules will vary widely. Clearly defining your objectives will help to narrow down options and parse out any solutions that won’t be the right match.

2. Decide what services you need

Once your objectives are established, deciding what services you’ll need is the next step in your transition. In addition to providing enrollment software, employee benefits technology platforms often offer wraparound services like spending accounts, COBRA administration, ACA reporting, and call center support. Adding these types of services can be both cost-efficient and an administrative win for your organization, depending on your needs.

3. Talk to your benefits broker

Thanks to new cloud-based applications, employers of all sizes have gained more access to platforms that handle many aspects of human capital management (HCM), including benefits administration. As you look at options, make sure to talk to your benefits broker to see what solutions they might provide. Many benefits brokers offer solutions directly or can recommend a solutions provider. These options might offer discounted access to benefits administration systems or tools that are otherwise unavailable.

4. Determine your in-house benefits technology management

Employers say that managing benefits is becoming increasingly complicated, with 62% in 2024 claiming that they are challenged by the complexity, up from 52%in 2015. When considering benefits administration technology, make sure to understand the levels of service the provider offers. This will help your team prepare for the commitment required of them to manage a new employee benefits technology solution.

Employers that are most challenged with the complexity of managing benefits are twice as likely to digitize their benefits processes. Avoiding platforms that seem to require more internal bandwidth than your team can handle will help to prevent administrative bottlenecks. The right human capital management solution for your organization will serve to streamline benefits administration, help to establish greater efficiencies and lighten the workload for your employees.

5. Educate yourself about cost structure

Although your organization may be prepared to make an investment or increase its current commitment, business models, ecosystems, and pricing structures will vary across providers. Here are five questions that will help in understanding cost structure while making your evaluations.

1. What is the per employee per month (PEPM) fee, are there minimums, and what services are included in the fee?

2. Are there fees to build out or update electronic data interchange (EDI) feeds?

3. Are there fees charged at renewals?

4. How much experience do they have exchanging data with your current payroll provider, insurance carriers, and/or third-party administrator vendors?

5. How are they embracing new and emerging technologies like APIs and artificial intelligence to improve their platform?

Familiarizing yourself with the workplace benefit technology trends will also be a big help in understanding what emerging technologies to look for in a provider. Once the necessary research is complete, implementing the new employee benefits technology platform can help to improve your employee’s experience, ease administrative strain, and streamline processes in the ever-increasing digitized workplace.

Learn more about benefits technology in Guardian’s 13^th Annual Workplace Benefits Study report, Next Digital Renaissance: Riding the wave of the benefits technology revolution.