Top 5 Advantages of Employee Benefits Software

To automate or not to automate: that’s the question isn’t it?

Across all of the decisions that small business owners and leaders have to make every day is the omnipresent one: Is this something worthy of a software investment or should I just keep doing it the manual way? Especially when you’re just starting out or are rapidly growing and your margins are razor thin, every decision matters and none can be taken lightly.

These days, there’s software for pretty much everything, so it can be tricky to know where to draw the line. When it comes to administering employee benefits, though, the pros are pretty clear. From keeping up to date on compliance changes to saving time, there are some pretty striking reasons why it makes sense to use third-party benefits software.

1. Helps you stay in compliance with the law

Since HR violations can mean serious trouble for your company if you’re not careful about avoiding them, a third-party benefits software can go a long way in taking the hassle of understanding and meeting compliance off of you.

As anyone who has dealt with the ins and outs of human resources and the various (and often changing) compliance regulations that come with it knows, there’s a lot to stay on top of in order to make sure you’re not in conflict with the law. And since HR violations can mean serious trouble for your company if you’re not careful about avoiding them, a third-party benefits software can go a long way in taking the hassle of understanding and meeting compliance off of you.

Of course, it’s certainly possible to hire a professional or train an existing team member to manage your small business’s benefits. However, a pro is going to cost money and there’s just so much to learn and understand that it can take a long time for a newbie to get up to speed.

When you opt for a software, the computer handles all of that for you. The best part? Some vendors will even guarantee that their software is kept up to date to the extent that they’ll pay for any costs that result from their software’s mistake.

2. Saves time

Not only does a software programmed with all the compliance and other knowledge that you would otherwise need to learn and understand save you time right out of the gate, it will keep saving you time, too.

First, many vendors offer employee portals so that your workers can log in and make changes themselves rather than schedule a meeting with your benefits administrator who then has to go in and make changes or adjustments manually.

Next, think about all the time it takes to share required documentation on the Affordable Care Act and things like that on top of all of the reminders you send out before, during, and after events like open enrollment. A third-party benefits software can automate all of that for you, which takes several major to-do list items off your plate.

Plus, when all of your benefits work is done online, you can access it from anywhere. This means that, especially now during the pandemic, you don’t need to go into the office to handle benefits work — you can do it from the comfort of your own home like anything else internet-based.

3. Makes record keeping and security a breeze

The thing about benefits paperwork is that it includes all kinds of sensitive information, from home addresses to social security numbers. If you’re still keeping paper records, that information is stored in … a filing cabinet? Even if you’re doing it digitally your own way, what if that Excel sheet gets deleted or accidentally attached to an outgoing email?

Third-party benefits software options offer a way to securely store your employee’s sensitive information, often in the cloud.

4. Helps eliminate errors

Humans make mistakes, there’s just no getting around that. Especially when dealing with particularly complex and often daunting human resources paperwork and calculations, mistakes happen.

One major benefit about software solutions is that they can help catch errors as well as flag inconsistencies between things like payroll deductions and employee contributions. This way, you’ll be alerted whenever something doesn’t quite add up.

One major benefit about software solutions is that they can help catch errors as well as flag inconsistencies between things like payroll deductions and employee contributions. This way, you’ll be alerted whenever something doesn’t quite add up.

5. Many employees prefer it

Beyond saving your benefits person the time it takes to meet with everyone, it makes the process of enrolling in and changing benefits and contributions and the like a much smoother experience for your employees.

Dashboards give them visibility into what their benefits are as well as an easy way to change personal information when necessary. Just like those responsible for benefits at your company can access the software at home, so can your employees. This makes it easier for them to sit down with their loved ones and make benefits decisions together on a platform that’s generally more intuitive and easier to understand.

If you’re looking for software that helps you simplify benefits administration, attract and retain top talent, and take the stress out of compliance, check out Zenefits. Whether you’re just getting started with your benefits strategy or looking for better ways to streamline, Zenefits HRIS can help.