Automation in employee benefits: A necessity for today’s workforce

From using a smartphone to pay at the gas pump to snapping up the latest fashion trends with a single click, the digital revolution has conditioned us to favor speed and efficiency in every aspect of life. This expectation seamlessly extends into the professional sphere, including having a significant impact on how the entire landscape of employee benefits functions.

When HR adds a new hire to payroll, they want it to happen in real time. Employees want to immediately see the change they just made to their workplace retirement plan contribution amount show up in their employee benefits portal. Benefits leaders want to be able to compare current, updated offerings among benefit providers.

While today's demand for benefits-related tools to be efficient, fast and comprehensive is felt in every industry, it's most acutely experienced by HR and benefits leaders — and employees — in high-turnover industries. For example:

• Truck drivers and other delivery workers are out on the road and only have access to benefits and HR information from a mobile device. This has traditionally hampered clear, robust, and timely communication for the driver and HR.
• Education wrestles with serious employment fluctuations at the beginning and end of every school year and often at mid-year. The roller coaster of onboarding, offboarding and payroll is challenging without a way to fit into the rhythm of payroll and employee benefits — and still get everything done accurately and on time.
• Health care employers, from urgent care clinics to hospital systems, must deal with a vast array of differences in benefits eligibility across roles, full-time or part-time status, certifications and more. Managing this manually can be a nightmare.

In short, today's employees, HR teams, and benefits leaders want their interactions and benefits tools to mirror the convenience they experience in their consumer lives. Everyone in the company wants to spend less time on administrative tasks and use tools that have less room for error.

Traditional paperwork or slow, manual processes are no longer acceptable. Why should employees have to wait for weeks on enrollment confirmations when a mobile app can deliver instant proof? This shift in mindset means employers who are striving to attract and retain top talent must integrate automation within their employee benefits.

Ripe for digital transformation

HR departments are often bogged down by the cumbersome task of managing employees' benefits manually. But it doesn't have to be this way. By automating this process, companies can minimize human error and increase efficiency, while providing a user-friendly experience for employees.

One of the main benefits of implementing automation in employee benefits is to eliminate paper-based processes. Not only does this save time and resources, it also reduces the risk of data entry errors and lost documents. With automated systems, employees can meanwhile access and manage their benefits information through a single platform, eliminating the need for multiple logins and paperwork.

Additionally, automation allows for real-time data tracking and reporting, which increases transparency and accuracy, and provides HR departments and company leadership with valuable insights into employee preferences. That allows companies to make informed decisions about their benefits offerings, ensuring they the needs of their workforce.

Automation can also improve the overall employee experience. Streamlining processes and providing easy access to information makes employees feel more in control of their own benefits and gives them a better understanding of their options. The result is higher satisfaction and engagement among employees and a more productive and motivated workforce.

5 ways employee benefits automation can make a difference

Here is a deeper look at five areas where automated employee benefits can reap rewards for employers and their workforce.

1. Redefining communication: Automation can revolutionize how information about benefits is disseminated within a company. Instead of static emails or printed documents that can quickly become outdated or misplaced, automated systems can deliver timely, personalized updates directly to an employee's device.

This real-time communication allows for easier access to important information, such as plan documents, enrollment deadlines, and any changes to benefits offerings. Through self-service portals, employees can quickly get answers to their benefits questions without needing to wait for a response from HR. This saves time and reduces the burden on HR professionals, allowing them to focus on more strategic tasks.

2. Streamlining onboarding and annual enrollment: For new hires, onboarding presents the crucial first impression of a company's operations. Automation can turn a once-tedious paper-based process into an engaging digital experience. New employees can select their benefits packages through interactive platforms that highlight options and costs with clarity, making decisions simpler and more informed. 

Additionally, automated systems can provide employees with personalized recommendations based on their individual needs and preferences. These decision-support tools help employees make more informed decisions while ensuring employees are selecting the best benefits options for themselves and their families.

3. Making data management more efficient: The use of technology in administering benefits drives better data collection and analysis for HR and benefits leaders. They are empowered to gather valuable insights into which benefits are most popular, how employees are utilizing their benefits, and what changes may be necessary to meet the needs of a diverse workforce.

This data-driven approach can help HR departments and benefits leaders make better-informed decisions about benefit offerings, pricing, and communication strategies. It also allows for a more proactive approach to addressing any issues or concerns that may arise with employee benefits.

4. Enhancing the entire employee experience: By streamlining and automating benefits throughout the entire employee life cycle, organizations can greatly enhance the overall employee experience. Employees get quick and easy access to their benefits information, can make changes as needed, and receive timely communication about any updates or changes. This not only improves satisfaction with the benefits program but also increases engagement and productivity.

5. Helping HR be more proactive in supporting the employee experience: These days, supporting your employees means more than just providing the right tools and workplace to do their jobs, but also providing programs, benefits and support to make their lives away from work better.

To do that, HR leaders need all the pieces of the puzzle working together — core benefits, voluntary benefits, programs like employee resource groups, and outside resources. An automated benefits system with a centralized platform or hub for all programs and services helps ensure employees are aware of the care and benefits they have access to and that they are able to tap into those resources without jumping through hoops.

Flexibility and customization: Keys to successful automation

While the larger framework of benefits automation is clear, it is equally important that any tool employed by an organization provides enough flexibility to address specific needs. A one-size-fits-all approach isn't enough. Customization options allow companies to automate the aspects of employee benefits most impactful to their operations. For some, this might mean focusing on automated health insurance enrollment reminders. For others, it's about having a robust self-service portal for employees to manage their benefits independently.

In an era where the phrase “time is money” has never been more pertinent, the ability to provide personalized and meaningful information when it's needed holds immense value. For HR professionals and benefits leaders, real-time data can illuminate trends and inform strategic decisions around benefits offerings. For employees, accessibility to current benefits information — and freedom from administrative red tape — can elevate job satisfaction and overall engagement.

Obviously, adopting automation in benefits isn't an overnight process. It requires strategic planning, stakeholder buy-in, and a willingness to invest in the right technologies. However, the rewards of such a transition — a more satisfied workforce, a competitive edge in talent acquisition, and a more efficient HR operation — are well worth the effort. 

This article was written by Paul Wilson from BenefitsPro and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.