Employers today are moving to online benefits enrollment because it’s effective, employees can check on their benefits package anytime, day or night, it generates a cost and time savings and it improves employee enrollment percentages up dramatically. Before, online benefits systems were expensive and cumbersome for both employers and employees. In 2019, there are more competitors offering the service and the online benefits enrollment platforms are flat out excellent, making it a no-brainer to sign up with a service.
Today 75 – 80 % of companies in the US have moved from manual
paper driven benefits enrollment programs to online benefits administration.
That sounds good on the surface, but the bottom line is companies need to find
a vendor the provides excellent customer service both during the sale and
onboarding period and after the company goes live.
Here are several factors to know why it makes perfect sense for
your company to switch to an online benefits administration platform:
- Lower Costs – This factor is obvious. The average cost for human resources to enroll a new employee in its benefits package manually is $120. A new employee benefits enrollment done directly by the employee is on the average $20. Bigger employers hiring on 100’s of employees realize significant savings with online benefits enrollment. Small businesses using online benefits enrollment realize cost savings. Those savings can be put to use elsewhere by the company, such as toward its company advertising and marketing.
- Time Savings for Human Resources – The Human Resources department realize a time savings of up to 20% in companies using online benefits administration systems for employee on-boarding
- 50 Percent Time Reduction for Company Open Enrollment – Human Resources time savings when using online benefits management are better able to dedicate time and critical staff resources towards important company goals. Focusing on important Human Resources areas of responsibility such as employee retention and wellness are critical to companies today. This tool help Human Resources have the time to do the best job possible and help the company in the process.
- Huge Reduction in Postage, Print and Paper Costs – The cost of preparing, printing, stuffing and mailing benefits packets is very high for a variety of logical reasons. Ink, paper and postage cost money and stuffing envelopes costs associated with labor are all expensive. By changing to online benefits enrollment and management, a company eliminates all four expenses.
Employees of company’s changing to online benefits administration will rave about the change for a variety of good reasons including 24/7 access, instant access to benefits information, easy of use and finally, the ability to make changes to benefits anytime anywhere.
Companies with online benefits administration platforms are not new, but they are not par for the course for most companies either. Company’s start realizing the advantages of online benefits administration almost immediately because of the cost savings, time savings and the added benefit of employees being able to both enroll in company benefits online and their ability to access their personal benefits information anytime, anywhere.