Benefits administration is one of the most common elements of an HRIS solution. It allows HR and Benefits Professionals to take the complex, time-consuming process of benefits enrollment and administration and automating it throughout your organization. Let’s take a quick look at the some of the most important aspects of Benefits within an HRIS solution:
Most HRIS vendors have the capability for you to set up the different benefit plans that your company offers. During implementation, you’ll be able to set up the rules (auto-enroll, taxing, dependent types, tiers, etc.) that drive how these benefits are administered and elected by your employees.
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New Hire, Open Enrollment and Life Events
Paper enrollment forms are time consuming and hardly the way HR Professionals should be spending their time -that’s why many HRIS vendors offer electronic enrollment through their Benefits module. Many systems can generate emails to alert employees that it is time to enroll in a particular set of benefits. The system guides them through the enrollment process and has them elect or waive benefits. Many of these systems can auto-generate benefits confirmation statements that employees can save as reference as to what they enrolled in. Enrollments are customizable depending on the number of benefits offered to a particular employee during a specified period. Most times an employee will be eligible for all benefits as a new hire but may not be able to change all benefits during periods such as open enrollment or if they experience a qualifying life event.
Connections to Benefit Carriers
So you’ve successfully enrolled all of your employees in benefits but now it is time to move that data into all the benefit carrier systems that provide the coverage and generate cards. To reduce errors and save time, many organizations utilize Electronic Data Interchange (EDI) which is a means of sending data from the HRIS to benefit carriers. These feeds often occur once or twice a week, depending on the size of your organization and the volume of enrollments, cancellations and changes that occur during a particular period. Carrier connections can dramatically decrease the number of human keying errors and most of all help you to focus on the parts of your job that bring value to your organization.
Many HRIS vendors offer reporting through canned or customizable benefits reports that help to streamline the benefits audit process. Maybe you need to run a report to detect the number of benefits changes during a particular payroll period or maybe it’s time to audit the monthly medical insurance bill to make sure you are not getting double charged. Whatever the need, benefits reporting will assist you in quickly collecting data to make informed decisions.
Authored By: Dave Rietsema