You havesome extra room in your technology budget for 2023. As a business owner, you naturally want to put that money to the best possible use. You ask the management team where they think the extra money would be best utilized, and one of them mentions benefits administration. You bristle at the suggestion due to the fact that employee benefits do not generate a dime of revenue for your company.
It is easy to look at capital improvements exclusively through the lens of productivity and revenue generation. It’s equally easy to forget that even the parts of your business that don’t directly generate revenues still contribute indirectly. As such, an upgrade to your benefits administration tech could still add to the bottom line.
At Benefit Mall, a general agency based in Dallas, technology is a big part of their support for benefits brokers. They make it a point of educating brokers about the importance of the digital transformation in modern benefits administration. If you doubt the need to upgrade your company’s benefits admin tech, BenefitMall says there are four definitive signs your system could use an upgrade:
1. You’re Still Using a Lot of Paper
In all likelihood, the HR department handles benefits administration for your company. Go pay a visit. See just how much paper is still involved in the process. If your visit reveals paper application forms, file cabinets full of benefits literature, and other sorts of paper resources, your system could definitely use an upgrade.
Modern benefits administration has finally entered the digital age. So much so that digital platforms eliminate virtually all paper. Literature is distributed to employees through email and other digital platforms. Employees visit online portals to complete their applications during every open enrollment. The HR department does everything from managing account to updating benefits enrollment through an online platform.
2. Your System Can’t Be Integrated
Among the many benefits of the digital transformation is that it allows multiple systems to be integrated with one another. All your technology being up to standard would mean being able to integrate your benefits system with your payroll system. An even better option would be a single platform for both.
At any rate, being unable to integrate benefits administration with other systems is a sure sign that you need an upgrade. Running separate systems for all your back-office functions not only does not make sense, but it is also completely unnecessary.
3. Bugs Are a Big Problem
Another sure sign you need an upgrade is outdated software that is continually failing due to bugs. It is not necessarily that the software is buggy – it worked fine for many years – it’s just that it is no longer compatible with modern systems.
Software bugs cause delays. They lead to inaccuracies. Outdated software can even be problematic where compliance is concerned. So ask the HR department just how often software bugs impair benefits administration. If they tell you that it happens frequently, consider an upgrade.
4. Your Team Has Moved Beyond It
Finally, take a look at the skills and qualifications of your entire HR team. If the team has collectively moved beyond the limits of your current benefits administration system, perhaps an upgrade would enable them to be more efficient in their jobs. Maybe technology more suited to their advanced skills would make them better team members.
Benefits administration has embraced the digital transformation. If your company is still not on board, what are you waiting for? Consider upgrading your tech as soon as possible. It almost guarantees that the HR team will love you for it.