HR Glossary for HR Professionals
Glossary of the most common HR terms and acronyms to assist professionals navigating the ever-growing and ever-changing world of HR terminology.
What is a Benefits Administration?
Benefit administration is the process of determining, designing, and managing the employee benefits for an organization. Typically handled by HR, benefits administration consists of managing employee benefits such as health insurance, retirement plans, and paid time off packages.
Guardian’s Workplace Benefits Study found most employers have increased their spending on benefits administration tech and employee benefits software in the last five years, and half of the employers surveyed plan to make further increases over the next three years.
Benefit administrative systems
Benefit administrative systems are an employee benefits software system for managing workplace benefits. It cuts out the traditional paperwork and automates employees’ benefits eligibility, elections, and enrollment in health insurance and ancillary options.
Many benefits platforms also provide a number of HR features, like time and attendance tracking, PTO, and more. Because health insurance touches so many parts of HR, it’s common to see single software platforms that handle both benefits and HR administration.
With online benefits administration for employers, the risk of errors is significantly decreased by reducing instances such as misreading handwriting or losing forms. The Society for Human Resource Management suggests an error rate of 3% occurs on total benefit premiums when the administration is processed manually. However, with an online platform, the data collection process is automated and integrated with carriers, which will drastically reduce the opportunity for error.
By providing benefits online, employees are more likely to recognize the full value of their benefits. By offering better clarity around benefits and convenience, there is an overall increase in satisfaction from all parties involved.
By implementing a software solution for benefits administration employers start to see significant advantages immediately. You’ve most likely taken other aspects of your business and professional life online—it’s time to bring benefit administration to that same standard. Before you know it, you’ll be able to spend more time on your key competencies, not shifting through administrative paperwork and answering repetitive questions.