Future of Benefits Administration
Last week, we heard from experts on the current state of benefits administration, exploring the most recent trends in the category in preparation for 2018 annual enrollment and 2019 business planning.
If you missed that blog post, go back and read it here.
Today, we reveal our outlook on the future of benefits administration and discuss the direction in which the industry headed. Some concepts have been around for many years, while others are developing and adjusting as technology continues to advance and become more robust.
Spoiler alert: The future is certain to be a bright one!
"Pure" defined contribution will continue to grow in popularity
The concept of pure defined contribution has been around for many years within in the benefits industry, specifically in the retirement/401K arena, and has steadily made its way to healthcare plan selection. Over the last several years, we've seen an influx of companies adopting a "pure" defined contribution strategy in which employees are given a fixed dollar amount (i.e. a "defined contribution") that they can choose how to spend across certain categories like individual health insurance costs, or other medical expenses such as prescription drugs or doctors.
What this means is that employees are given more options - but also need the supporting education to bring Consumer-Driven Health principles to life. And employers can appreciate a predictable, per employee benefits expense, with a fixed dollar amount - versus the alternative: unpredictable expenses.
Employees expect “24/7/365" engagement
In the past, open enrollment has been the primary focus for benefits administrators, followed by new hire on-boarding and employee life events – but it’s important to view the benefits administration process as an all-inclusive for the employee. Employees want answers to their benefits-related questions throughout the entire year, not just during open enrollment.
To meet those expectations, benefits administrators must provide employees with a holistic view of their company benefits, meaning they must look beyond treating health and wealth as separate entities, and instead, view them as complimentary pieces of the entire total compensation package.
Finally, better software integration overall is the key to benefits enrollment satisfaction. Employees will continue to expect “single sign-on,” so that one login/password entry provides access to multiple benefits related items within a single platform.
Increasingly, we see employers looking for the best-in-class in various HR categories (HCM, Payroll, Benefits Administration), and combining them through EDI and API integrations [Watch The Webinar] to make one ultimate platform and personalized experience for their employees.
Let us help you plan for the future (and growing complexity) of benefits administration. Our platform can simplify the management of your most important asset - your people - with a cloud-based solution for time and attendance, payroll, benefits and more - all designed with the flexibility to accommodate the needs of your business. Set up a conversation with one of our specialists to learn more.