As the average cost of living continues to rise, there has been an increase in focus on employee benefits solutions that allow for reasonable amenities. In order to keep up with high costs of living, new regulations and programs are being developed and implemented all the time. However, keeping track of all the information that offering these benefits entails can be a lot of for anyone to manage.
Many employees currently put a lot of weight on the perks offered by employers. When looking for a new position or debating whether or not to stay at a current job, benefits can have an enormous influence on workers. Employees will also be likely to work harder and put forth more effort if they know they will have consistent access to to packages such as paid leave, or group health insurance plans.
The need for regular living assistance has become so apparent and crucial, that the government has even felt the need to step in and ensure that people are getting the compensation they deserve. There are multiple nationally recognized regulations regarding benefits. For example, the Patient Protection and Affordable Care Act, require that organizations with a staffing contingent of 50 full time employees or more, must offer appropriate health benefits to all workers; even part time workers in the company must legally have access to these benefits.
In order to abide by legal regulations and offer enough perks to keep employees happy, sectors of human resource benefits administration coordinate and manage the distribution of these packages. Previously, these duties would mostly be completed by human resource employees. However, now that so many benefits must be provided, and in a manner that follows the law, more companies are turning to human resources software.
Between reducing the need to pay more employees, and ensuring the reliability of managing employee benefits, organizations are seeing more and more advantages offered by using automated software. New research has shown that only 13% of organizations have a single human resource benefits administration software system in place, while, on average, the majority of companies have three to four different human resource applications; some may be for learning, others for recruiting.
As the need for benefits increases, the need for automated systems to manage them will as well. Currently, 57% of companies plan to make a major new digital human resource benefits administration system within the next 18 months.
