Employee Benefits Administration: 3 Keys to Smooth Benefits Management
by Nayya Marketing June 2, 2022
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To put it lightly, there is a lot going on in the world and workplace right now. From the lingering effects of the pandemic, to the struggle to attract and retain talent, to rising inflation rates (and whispers of recession on the horizon), organizations need new ways to ensure they are meeting employee needs. One method? Restrategizing your approach to benefits administration. A seamless benefits administration strategy can help your organization soar to the next level and stand out as an A+ employer. But how? Let’s dive in.
First, What is Benefits Administration?
If you’re a benefits expert, feel free to skip to the next section, but before we dive into the why and how, it’s always helpful to really nail down the what. Benefits administration (or BenAdmin, for short) entails creating, updating, and managing benefits for the company's employees. Generally, this docket is assigned to the human resources team. It involves duties like:
- Creating a benefits program
- Registering new employees in the program
- Engaging the suppliers
- Handling and processing the invoices
Leading organizations often inculcate their benefits management operations with BenAdmin softwares. The software is programmed to create and maintain each employee’s personal profile and keep track of essential data such as employee personal data and marital status, employment date, hours worked, attendance records, dependents, and more.
Employee benefits can come in many shapes and sizes, but commonly look like:
- Health cover or insurance such as medical, optical, and dental
- Life and any form of disability cover
- Benefits after retirement. These include pensions and 401(K) contributions
- Compulsory remunerated leave. It covers personal leave; caretakers leave, maternity and paternity leave, leave for the disabled, and holiday leave.
- Adoption and child care allowances
- Company education benefits, e.g., providing seminars and training, professional development assistance, and tuition assistance
- Movement allowances, parking permits, relocation allowance, and housing allowance
- Work-life balance benefits: these include on-site child care, remote work days, flex time, and pets-at workplace guidelines
- Meals ranging from free drinks and snacks to on-site self-services.
- Entertainment allowances like trips, parties, game nights, and outings.
- Ergonomic office facilities like rec rooms, breastfeeding rooms, quiet places, standing desks, etc.
- Worker Performance recognition programs. e.g., monetary awards, employee-of-the-year awards, honorary awards, etc.
Luckily, some procedures and resources help companies administer these benefits adequately and successfully, keeping their workers motivated and happy.
3 Keys to Smooth Benefits Management
These steps will assist you in establishing a benefits program that protects your employees' needs while pushing your organization to achieve its goals.
Choose the Right Benefits for Your Employees
Gone are days when employee benefits only meant a standard fair attached to a compensation package. The right benefits will exemplify your company culture and values—and they have the power to position you above market competitors. A comprehensive benefits package can show employees that you value not only their work, but their health and financial wellness. And while crafting the right benefits package is instrumental for attracting top talent, it’s also key for employee retention.
How many times have you heard a friend or family member utter something along the lines of “I’m not against the idea of looking for a new job, but the health/dental/PTO policy/401K match/ etc. at my current company is just too good to give up!” A strong benefits package can make or break whether or not your employees want to stay at your company—in fact, 90% of employees said benefits matter when deciding whether to stay at a job or leave for a new opportunity.
Communicate and Educate
Once those benefits plans are carefully crafted, it’s important to remember that access to the plans doesn't necessarily mean that employees understand what their options are. If proper education is not offered, employees may not understand the value and could opt to not enroll or participate in the offering. Research shows that 63% of employees are not confident when selecting their benefits. When employees understand their benefits, plan participation increases, and cost per-person reduces.
We know the status quo for benefits education typically comes in the form of pdfs, webinars, and email memos—but companies that go above and beyond these standards can start to see a drastic increase in plan participation. For example, a tool like Nayya uses AI and personal data to understand an employee’s health and financial needs and suggests the best benefits plans for each unique employee, educating them on the why behind each suggested plan along the way.
Some of the laws to comply with that may affect your company's benefits administration program include: COBRA, HIPAA, ACA, FMLA, and others. It’s critical to ensure you’re following any and all regulations that apply to your organization. To start:
- Know which law applies to your business
- Ensure that you understand the milestones for the regulations affecting benefits and stay ahead of the curve
- Take advantage of the government's free guidance offered to small companies like the state labor departments
- Seek advice from the many HR businesses you operate with, such as retirement plan administrators
Your benefits administration strategy plays a crucial role in attracting and retaining talented employees. Benefits are the second most influential factor when considering whether to stay at a job or leave for a new opportunity. An excellent benefits administration strategy can promote employee engagement and loyalty. By ensuring that you’re choosing the right benefits, properly educating employees on these benefits, and maintaining compliance along the way, you’ll be on your way to seamless benefits management.
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