The Importance of Benchmarking Employee Benefit Platforms

In the competitive world of business, attracting and retaining top talent requires more than just a competitive salary.

A robust employee benefits package is essential. But how do you ensure your benefits offerings are not just competitive but also the perfect fit for your employees’ needs? Well, say a big hello to the practice of benchmarking employee benefit platforms.

Benchmarking is the process of comparing your company’s practices, processes, and performance metrics to those of industry leaders or competitors. When it comes to employee benefits, benchmarking involves evaluating your benefits package against those offered by other companies within your industry, region, or size category.

While this has historically been focused on the benefit package itself, it is also important to consider the type of platform used in order to allow employees to personalise and understand the value of their benefits package, communicate your wider employee proposition and remove the administrative effort of managing your benefits schemes.

So, how do you know if your benefits platform is up to par?

It’s important to start, and stay, on the front foot!

Benchmarking the technology behind employee benefit platforms is crucial for ensuring your organisation stays at the forefront of efficiency and employee satisfaction. By evaluating and comparing the technological capabilities of your benefits platform against industry standards, you can identify the most advanced features, such as real-time reporting, seamless integrations, and user-friendly interfaces.

This process helps you select a platform that not only meets your current needs but also scales with your company’s growth, enhancing the overall employee experience and optimising administrative workflows. In a rapidly evolving digital landscape, benchmarking your benefits technology ensures you leverage the best tools available to support your workforce effectively.

1. Stay competitive. In a dynamic job market, staying competitive is vital. Potential employees often compare benefits packages before making employment decisions. By benchmarking your benefits, you can ensure your offerings are attractive compared to those of your competitors. This not only helps in attracting new talent but also retaining your current employees. The desired platform comes into play here to assist with communicating this total reward package.
2. Identify gaps and opportunities. Not everyone can think of everything they need. Understanding your internal wants and needs is important, but you will never be able to consider everything. Identifying the gaps in your current benefit offering and getting to know the opportunities available is an important step in the benchmarking process. By recognising these gaps, you can adapt and enhance your benefits to better meet the needs of your employees.
3. Improve employee satisfaction and retention. A well-rounded benefits package is a vital cog in the wheel of employee satisfaction. When employees feel their needs are being met, they are more likely to stay with your company. Benchmarking ensures that your benefits package is aligned with what employees want, leading to higher satisfaction and retention rates. Everyone’s a winner.
4. Cost management. Benchmarking can also reveal areas where you might be overspending. Understanding what similar companies are spending on their benefits can help you manage your costs more effectively. It’s not about cutting corners but about investing in the right benefits that provide the most value to your employees.

After you’ve identified your gaps and understood where your opportunities are, now it’s time to have some fun. When benchmarking employee benefits platforms, it’s essential to go beyond the surface and delve into the specific features and functionalities that define a high-performing system. Here’s some examples of what employers should focus on:

• User Experience (UX)

A good benefits platform should offer an intuitive, user-friendly interface that makes it easy for employees to navigate and understand their benefits. Look for features like:

• • Ease of Navigation: Can employees easily find the information they need?
  • Self-Service Options: Are employees able to manage their benefits independently?
  • Mobile Accessibility: Is the platform optimised for mobile devices, allowing employees to access their benefits on-the-go?
• Integration Capabilities

The ability of a benefits platform to integrate with other HR systems is crucial. Employers should check for:

• • Seamless Integration: Does the platform integrate smoothly with your existing HRIS, payroll, and other relevant systems?
  • API Availability: Are there APIs available to facilitate custom integrations?
  • Data Synchronisation: How effectively does the platform synchronise data across different systems?
• Customisation and Flexibility

Every company has unique needs, so the ability to customise the benefits platform is essential. Look for:

• • Configurable Options: Can the platform be tailored to fit your specific benefits programs?
  • Scalability: Is the platform capable of growing with your company?
  • Flexible Benefit Structures: Can the platform handle various types of benefits, such as tiered plans or voluntary benefits?
• Employee Engagement Tools

Engagement is key to ensuring employees take full advantage of their benefits. Look for platforms that offer:

• • Communication Tools: Does the platform facilitate easy communication between HR and employees regarding benefits?
  • Educational Resources: Are there tools available to educate employees about their benefits, such as webinars, FAQs, or interactive guides?
  • Personalisation: Can the platform provide personalised benefits recommendations based on individual employee data?
• Data Security and Compliance

With sensitive employee information involved, data security is paramount. Ensure the platform offers:

• • Robust Security Measures: Does the platform use encryption and other security measures to protect data?
  • Compliance with Regulations: Is the platform compliant with relevant regulations such as ISO accreditations, GDPR, or other data protection laws?
  • Regular Audits: Does the platform undergo regular security audits and updates?
• Real Time Reporting

When diving deeper into employee benefits technology, the capability for real-time and self-serve reporting is a critical feature that can greatly enhance the effectiveness of your benefits management. Here’s why this functionality is important and what to look for:

• • Increased Efficiency: Self-serve reporting tools reduce the administrative burden on HR departments. Instead of manually compiling reports, HR professionals can use intuitive reporting tools to quickly generate the data they need. This efficiency frees up time for more strategic tasks and reduces the potential for human error in data handling.
  • Real-Time Data Updates: The platform should provide real-time data updates, ensuring that the information you are accessing is always current. This feature is particularly important for tracking dynamic metrics such as benefits enrolment and usage patterns.
  • User-Friendly Interface: A user-friendly interface is essential for both HR professionals and employees. Look for platforms that offer intuitive dashboards and easy-to-navigate menus. The reporting tools should be accessible to users with varying levels of technical expertise.
• Easy and Quick Implementation

An easy and quick implementation process is beneficial for several reasons:

• • Business Continuity: Ensures that your business operations continue smoothly without major interruptions.
  • Employee Morale: Reduces the frustration and confusion often associated with transitioning to a new system.
  • Strategic Focus: Allows your HR team to focus on strategic initiatives rather than getting bogged down in lengthy and complex implementation processes.
  • Agility: Enables your company to respond more swiftly to changes in the business environment or regulatory requirements by adopting new technology quickly.

We’re not done with implementation just yet! Sometimes this part of the software procurement process is considered a backburner issue, whereas the ease and speed of implementation can actually be a massive deciding factor. A smooth implementation process ensures that the platform can be up and running with minimal disruption to your business operations. Here’s why this aspect is beneficial and what to look for:

• Minimal Disruption to Business Operations: As simple as pie, a platform that is easy and quick to implement minimises downtime and ensures that your employees and HR team can transition seamlessly to the new system. This is important for maintaining productivity and avoiding any lapses in benefits administration.
• Faster Time to Value: The quicker the implementation, the sooner you can start leveraging the advantages of the new platform. This means you can start seeing improvements in employee engagement, satisfaction, and administrative efficiency much faster. Look for platforms that promise implementation timelines of weeks rather than months.
• Lower Implementation Costs: A straightforward implementation process often translates to lower costs. Complex implementations can be resource-intensive, requiring more time, money, and manpower. Platforms designed for quick deployment typically require fewer resources, reducing overall implementation costs.
• Reduced Learning Curve: An easy-to-implement platform usually comes with user-friendly interfaces and straightforward setup processes. This reduces the learning curve for both HR teams and employees, allowing them to quickly adapt and start using the system effectively.
• Codeless Software Solutions: One key feature to look for is codeless software. Codeless platforms allow HR teams to configure and customise the system without needing extensive IT support or programming knowledge. This significantly simplifies the implementation process and empowers HR teams to make changes and updates independently.

A high-quality employee benefits platform is more than just functional; it should enhance the overall employee experience and streamline administrative processes. Here’s what an exemplary platform looks like.

1. High Employee Satisfaction. Employees find the platform easy to use and understand, leading to higher engagement and utilisation rates. Positive feedback from employees about the benefits selection and management process is a strong indicator of success.
2. Streamlined Administrative Processes. HR teams can manage benefits efficiently, with reduced manual workload and fewer errors. The platform automates routine tasks, freeing up HR to focus on strategic initiatives.
3. Enhanced Decision-Making. Employers can make data-driven decisions about their benefits offerings. Comprehensive analytics and reporting tools provide insights into what benefits are most valued and how to optimise the benefits package.
4. Competitive Edge. The platform helps the company stay competitive in the job market by offering a robust and appealing benefits package. The ability to benchmark against industry standards ensures the company’s offerings remain attractive.
5. Strong Security and Compliance. The platform meets or exceeds industry standards for data security and regulatory compliance, giving both employers and employees peace of mind regarding the protection of sensitive information.
6. Comprehensive Onboarding Support. Check if the vendor provides comprehensive onboarding support, including training sessions, detailed guides, and dedicated customer support to assist during the implementation phase.
7. Clear Implementation Timeline. A clear and realistic implementation timeline is essential. Ensure the vendor outlines each step of the process, from initial setup to full deployment, and commits to achievable deadlines.
8. User-Friendly Configuration Tools. Look for platforms that offer intuitive configuration tools that allow HR teams to set up and customize the system without needing to write code. These tools should support easy adjustments to benefits plans, eligibility rules, and reporting requirements.

Benchmarking your employee benefits platform is a strategic move that can significantly enhance your company’s appeal to current and prospective employees. By focusing on user experience, integration capabilities, customisation, engagement tools, data security, and analytics, you can ensure your benefits technology is not just good but exceptional.

Benchmarking isn’t a one-time task. It’s an ongoing process that keeps your benefits competitive and your workforce engaged.

Remember, a great benefits platform does more than just manage benefits; it engages employees, simplifies administration, and provides valuable insights, ultimately contributing to the overall success and competitiveness of your organisation. So, take the time to benchmark thoroughly, invest wisely, and watch your company thrive with a top-notch employee benefits platform.