3 Best Benefits Administration Software & Buyer’s Guide

Paylocity

Web-based payroll HCM solution Helps reducing administrative tasks Maintains accurate time of attendance data New hires automatically added to system Streamlined processes Accessed 24*7 Mobile app Track employee compensation 

Rise

Unify HR Benefits Payroll Simplified personalized All-in-one People Platform Saves business time & money Focus on people Mobile app Track employee compensation Benefits Deductions Time-off requests Retirement plans

Vestwell

Digital platform Easier to offer Administer plans Traditional jam points removal Focus on the under-served small plan market, Helpful to those Companies which lack a plan, traditionally accessed with high  fees Plan design & limited investment 

Benefits Administration Software

Benefits administration software is a kind of software which offers organizations in managing benefits provided to employees like Health insurance, Retirement plans, and Paid time off. The software permits users to help in monitoring company expenses into employee welfare, liaise with suppliers and create benefits programs for new employees, to provide retirement and insurance services.

Benefits administration is a core responsibilities of human resources department, which involves the management of employee benefits like, tracking paid time off and overseeing employee health insurance. Typically, benefits administration is included within a broader suite of HR applications—for example, payroll, time and attendance and performance-review modules. While small businesses manage employee currently  in benefits and other HR processes using manual methods, like spreadsheets and email. Software is also available for streamlining the process. There are a plethora of sellers providing applications designed specifically to assist HR professionals carry out tasks very efficiently.

Features of Benefits Administration Software

Benefits administration offers to keep track of various plans and providers —from health to dental insurance. As paying for benefits is mostly a large expense for companies, willfully monitoring expenditures and those employees who have signed up for which kind of plan, becomes a key when employers are to stay within the budgets.

While organizing the data in spreadsheets must be feasible for small businesses with fewer than 10 employees, administering benefits can hastily become a complicated process if it isn’t properly organized. Benefits administration software not only offers businesses monitor their expenses, it also permits employees themselves to view and alter the benefits elections. This kind of software application may have some/all of the following capabilities:

  • Online benefits enrollment
  • Allows employees to enroll in benefits like health care and 401K online.
  • Employee benefits administration
  • Enables HR to easily manage employee benefits in a centralized location.
  • Affordable Care Act reporting
  • Allows organizations to ensure compliance with the ACA and file necessary paperwork and reports.
  • Compensation statements
  • Allows organizations to show employees the value of package of benefits
  • Integrate benefits package providers into one easy-to-manage place
  • Run reports and analyses
  • Initiate and manage open enrollment
  • Use self-service portals to allow employees to change elections as they experience life events.

Costs of Benefits Administration Systems

As the benefits enrollment solutions are typically sold as a part of an application of a larger HR software solution—which will generally have applications for applicant tracking, payroll and performance reviews—the cost for the type of software is similar across the greater HR market. It is crucial to understand how benefits management systems can be deployed. There are two types of deployment model available are either on-premise or Web-based.

For on-premise deployment, the business hosts the solution on the own servers which are generally located on its own premises. With Web-based deployment, businesses don’t require to install the software on local hardware. Instead, the software is hosted on remote, third-party servers, and is very much accessible on a browser of any mobile or computer device with an Internet connection.

These systems are priced one of two ways:

  • through a perpetual license, for on-premise systems generally, in the form of an upfront cost to own the software and use it on an ongoing basis.
  • with a monthly subscription fee, for Web-based systems. Whichever model you choose, as a general rule, as you add more and more advanced features and functionality, the cost of the system will increase correspondingly.

While the price is one factor while considering the type of deployment method the company should opt for, there are various others also. In fact, the HR solution  market has been a great adopter of the Web-based deployment method have three key reasons:-

  • Cost
  • Convenience
  • Security

When it comes to benefits administration and payroll, various buyers specifically try to get an employee self-service feature. This feature permits employees and managers to log in to the system to check the status of the respective benefits—such as , days of paid time off they have accrued—without requiring to go into the HR department. Employees and managers can log in from any remote device with an Internet connection with a Web-based system, meaning they don’t require to physically be in the office. The whole process saves HR administrators and small-business owners time, permitting them to focus on their duties.

Consideration while Buying Benefits Administration Software  

Considering the type of benefits administration system is to be bought can be an overwhelming prospect as the number of products on the market are so many in number. There are some skills involved for a company can employ to ease and improve the process.

Buyers can determine which selection method are the most effective. The top methods for evaluating software include: having an attorney review license or subscription agreement; checking vendor references; assessing the vendor’s financial viability; and preparing a request for proposal (RFP) or request for information (RFI).

To assist buyers in visualizing the data from the survey, check between the plots each tactic along two axes:

  • one measuring the method’s correlation to high satisfaction
  • other showing its impact on the outcome of the project

By employing skills in the “most effective” quadrant and rejecting those in the “least effective” one, the company can effectively streamline its software selection process to ensure choose a system that best addresses team’s requirements.