Employee benefits programmes are one of the most important elements of any workplace. They're fundamental to everything from employee satisfaction, to motivation, to recruitment. Not only do they help take care of employees' fundamental needs, but they can also help them feel valued and engaged in the workplace.
It's important that HR teams feel well-informed and confident when it comes to the administration of employee benefits. Effective benefits administration goes hand-in-hand with great employee benefits programmes. That, in turn, leads to happy, healthy workforces!
To help you feel informed about the employee benefits administration process, we've put together this guide just for you.
If you're ready to dive into the world of employee benefits administration, read on!
There's a lack of clarity about what employee benefits administration is, but it's not as complicated as it sounds. Basically, if you have (or want to have) any kind of employee benefits programme, it needs to be administered and managed. That can extend to:
Employee benefits administration is assigned to HR departments and is usually the responsibility of a designated benefits administrator.
Many companies choose benefits software like Perkbox to assist them with their benefits administration needs. Managing employee benefits can be a daunting task, so using an all-in-one software ensures that the process goes as smoothly as possible and nothing gets overlooked along the way.
Basically, in order to have a competitive employee benefits programme, it needs to be effective, organised, and well-administered. That's what makes benefits administration so essential.
Having an excellent employee benefits programme is important for a wide variety of reasons, but they all boil down to one central truth.
Competitive employee benefits programmes have an impressive ROI and do wonders for both employee retention and recruitment.
That's right, it's been shown that a variety of employee benefits actually generate returns for their companies. Namely, healthcare benefits, wellbeing benefits, mental health benefits, and financial support benefits have all been shown to generate ROIs of 162 to 1500%. That means that benefits programmes not only improve employee health and wellbeing, but are also great business decisions.
They're a great tool for recruitment as they help your company stand out and attract top talent. They're also effective for employee retention because they create a work culture where employees are valued and cared for.
If you're trying your hand at benefits administration for the first time, or simply want some tips that'll make the whole process more seamless, we've got you covered. We've broken down the best way to go about benefits administration step by step below.
First things first, you'll need to decide on the employee benefits you want to offer. Some of the most common ones include:
Many companies offer additional benefits in order to give back to their workers and make themselves more attractive places to work . These benefits include:
You'll need to consider which benefits are the most aligned with your company's situation and your employees’ needs. At Perkbox, we help create a customised employee benefits programme based on your needs.
It's very difficult to start administering and managing benefits if your employees don't know how they work. That's why an essential step for benefits administrators is educating employees and onboarding them into the company's benefits programme.
Here are just some of the ways to do so:
Ideally, benefits should strike a balance between delivering great value to employees while still being cost effective for the HR department and the company at large. As a result, benefits administrators consistently monitor their programme's costs. Here are a couple things to keep in mind when doing so:
One of the most important aspects of benefits administration is ensuring that your employee benefits are compliant with local regulations. This is essential as failing to comply with government regulations can result in a lot of complications and even legal action.
Always consult a professional about the legislation around your employee benefits - a good benefits provider should be able to do this for you. Pay attention to tax implications as well, especially when it comes to salary sacrifice benefits.
This final step in the benefits administration process is essential! They take a lot of time and effort to put together, but employee benefits programmes should never be set in stone. They can change depending on employee feedback, HR processes or changes in the company.
It's important to establish a procedure to follow if there needs to be any changes, as well as a framework for how changes will be communicated in the future. The best benefits or HR software companies should be happy to help you with any changing needs.
In order to ensure that your employee benefits package truly makes a difference in your employees' health and overall wellbeing, be sure to put some thought into choosing the right benefits. Benefits that aren't in line with what employees really want simply won't be as competitive in terms of their effect on employee motivation and satisfaction.
Here are some tips to keep in mind when trying to determine the right benefits for your employees:
If you're looking for ideas for your benefits programme, here are a couple options that are well loved by employees and employers alike.
Wellbeing benefits have become increasingly popular in recent years, and nowadays they're highly in demand at workplaces across the board. In fact, 89% of workers at companies that support wellbeing initiatives are more likely to recommend their company as a good place to work. Needless to say, people are aware that health extends well beyond physical health and includes mental and emotional health as well.
Perkbox offers a comprehensive wellbeing platform that positions this as a key pillar of your company culture and Employee Value Proposition (EVP). Our platform:
Offering perks and rewards to your employees is a great way to motivate them and express gratitude for all their hard work. Perks also do wonders for employee engagement, recruitment, and retention. Indeed, 60% of people report that benefits and perks are a major factor they consider when deciding whether or not to accept a job offer.
Here's what Perkbox offers:
Another kind of employee benefit that does wonders for employee engagement and morale is a recognition programme. These give workplaces the ability to recognise and reward their employees in a personalised way.
A little appreciation goes a long way - 63% of employees who are recognised are very unlikely to start looking for another job.
The Perkbox recognition platform does a great job of making employees feel valued. It provides:
If you're a benefits administrator looking for an HR software to help you manage your employee benefits programme, you're likely to feel bombarded by options. To help you make your decision, consider the key criteria below.
First things first, make sure your software is scalable. You might not need to use all its features now, but who knows what will happen in the future. You'll want to choose a solution that will grow with your business, whether you employ 50 people or 5000 people.
Another important feature to look for in an employee benefits administration software is a high degree of automation. Benefits administration is hard work and there are lots of moving pieces to keep track of. Any software that allows for the automation of HR processes will save you a lot of time and energy.
Benefits software works best when it can be integrated with other HR software that you already use. This is because you can start using a new software while preserving your existing workflows.
For example, it's easy to integrate Perkbox with a variety of other HRIS (Human Resource Information Systems), including:
It's important to choose HR software that's transparent about the employee benefits they offer. They should be able to explain what they provide to you clearly and why their software will work to your company's advantage. In order to correctly determine the right benefits software for your needs, you'll need to be well-informed and confident about their offerings.
Last but not least, the software you choose will need to fulfill your company's specific needs and requirements. Don't make the mistake of choosing software that falls short on something that you consider important. Continue researching different options until you find the perfect solution for your benefits administration!
Having the right work perks and benefits can have a huge impact on talent attraction, engagement and retention.
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