A powerful and easy to use benefits administration program could be just a click away.
Running employee paychecks and counting vacation days by hand might seem like something out of the Stone Age: but the reality is there are still HR professionals doing these tasks the old fashioned way. Whether that’s by choice or due to a lack of HR technology available, there might be a better way to handle employee compensation and benefits.
Your compensation and benefits program is more than just how your employees get paid. It’s your most valuable recruiting and retention tool. When you’re looking to offer a job to a new candidate, one of the first things they’re likely to ask about is compensation and benefits. Knowing how to create an enticing compensation and benefits package could be the key to landing the candidate of your dreams.
What are employee compensation and benefits?
Employee compensation and benefits refers to how your employees are paid for their work and the perks your company offers along with employment.
Compensation refers to an employee’s monetary compensation for doing their job. Employee compensation can take many forms: base salary, commission, hourly wages, etc. Employers administer employee compensation by running payroll. Companies often run payroll on either a weekly, semi-monthly, or monthly basis.
Benefits are the non-monetary offerings your company provides to employees in addition to their compensation. There are different types of employee benefits that can include everything from health insurance to weekly catered lunches. Anything offered to your employees as part of their job offer outside of their salary is considered an employee benefit.
How does benefits administration work with compensation and benefits?
When an employer extends a job offer to a candidate, they include what is called a compensation and benefits package. HR managers use the process of benefits administration to put together a competitive compensation and benefits package when extending a job offer to a candidate.
What is benefits administration?
Benefits administration describes the process of creating, managing, and updating those employee compensation and benefits packages.
HR managers can also use benefits administration to track current employee usage and engagement, as well as find the best way to cut costs. The process of benefits administration can be time-consuming for HR departments to manage on their own. That’s why many companies prefer to use benefits administration platforms to manage their employee compensation and benefit programs.
What is a benefits administration platform?
Benefits administration platforms are used by HR managers to monitor and maintain their employee compensation and benefits program. As technology becomes more common in the workplace, HR managers are seeing value in investing in these types of programs.
The time and effort it takes to manually manage employee compensation and benefits is often seen as too great: many HR managers would rather pay for software to do the more tedious tasks for them.
Here are some of the benefits of using a benefits administration software:
Works alongside your existing payroll software to provide your HR team with a more streamlined, comprehensive administration experience
Identifies the benefits that provide the most value to employees and reduce overall costs
Helps with the employee onboarding process by giving employees information on their benefits options (401k, medical insurance, etc.)
Gives employees a chance to take a proactive approach to managing their own benefits
Manages invoices and other financial aspects, or passes them onto the finance department, when employees take advantage of relevant benefits
Offers a benefits portal through which employers and employees can access benefits plans, update information, and enroll in benefits during and outside of the annual open enrollment period
Ensures compliance with government regulations and state and federal laws, including the Affordable Care Act (ACA) and the Health Insurance Portability and Accountability Act (HIPAA)
These are just a handful of the perks tracking your compensation and benefits program with software can provide. Depending on your company size and budget, you may see greater benefits than the ones listed in this article.
How do I know which benefits administration platform is right for my company?
If you’ve never purchased a benefits administration software before, you may be wondering how to find the right software solution for your business. A live look at the G2 Grid® for this category shows the different benefits administration products available based on real-time, validated user reviews.
The key to choosing the right software solution to power your compensation and benefits program is to fully understand what you need in a software. Ask yourself these questions before purchasing any software:
What is my budget for this software solution?
How many users will need admin access to this program?
What are the top three things this program must be able to do?
Meet with your HR and finance team to decide on a software that works for your business’ unique goals and needs. Once you’ve decided on that, you can move forward with your purchasing decisions.
Everyone can benefit from benefits administration
Once you delegate the day-to-day tasks of benefits administration to a software solution, you’ll have more time to craft a competitive compensation and benefits program to attract new talent. Don’t spend all of your time tracking numbers in excel – leave that work to the computer and start innovating!
Interested in learning more about benefits administration software solutions? Click the button below to read more G2 user reviews from people like you.
Lauren is a Content Marketing Manager at G2. You can find her work featured on CNBC, Yahoo Finance, and on the G2 Learning Hub. In her free time, Lauren enjoys watching true crime shows and spending time in the Chicago karaoke scene. (she/her/hers)