Small and medium-sized businesses (SMBs) are the bedrock of the American workforce. Even with major conglomerates that appear to dominate the business space, the reality is that most American employees work for an SMB. Although classified as small, these companies have a massive impact on the U.S. economy, employing 56.4 million workers and generating more than $16.2 trillion in revenue in 2021.
Accounting for 46 percent of the total workforce, SMBs are considered American workers’ largest source of employment. Running an SMB comes with many duties, from growing customer relationships to devising growth strategies and beyond. One could argue that talent management is at the heart of these duties, as they revolve around a company’s most valuable asset: its people. Within this framework, employee benefits are a key puzzle piece in keeping employees engaged and committed. However, benefits administration comes with its hurdles. Complex regulatory standards and the need to manage diverse plans alongside eligibility criteria can make benefits enrollment a time-consuming administrative burden. A complicated process diverts valuable resources from core business functions and increases the risk of expensive mistakes.
Beyond the operational complexities, effective communication around benefits options and utilization is crucial for employee satisfaction and retention. Many employers may be surprised to learn that a shocking number of employees are unaware of all the benefits available to them. For example, let’s say an employer offers mental health resources and support as part of their benefits package. This benefit can be a major selling point for recruiting new employees and retaining existing ones, as 92 percent of workers say it’s essential to work for a company that prioritizes their emotional and psychological well-being.
However, a convoluted benefits system creates a gap in communication and accessibility. This leaves nearly 20 percent of employees either “not confident at all” or “slightly confident” in their understanding of the benefits that their employer offers. This rift spotlights the need for improved communication and education to maximize the value of benefit offerings.
The consequences of inefficient benefits enrollment extend beyond HR departments. Decreased employee satisfaction from confusion or frustration with the enrollment process can negatively impact morale and productivity. Also, businesses that still use outdated tactics like manual data entry and processing are susceptible to errors, leading to increased costs due to incorrect premium payments and compliance issues. The time-consuming nature of traditional benefits enrollment can also strain HR resources, preventing them from focusing on initiatives that drive business growth.
To address and overcome these challenges, SMBs must embrace technology-driven solutions that automate routine tasks and elevate the overall benefits experience to create an intuitive and personalized enrollment process. Employers can empower employees to make informed decisions about their benefits packages by providing user-friendly interfaces and customized dashboards. Mobile-accessible platforms further enhance convenience and engagement, especially among younger generations of workers who have grown accustomed to digital experiences.
Tech-Driven Benefits Management
With an automated benefits administration system, HR managers can eliminate manual verification, paper shuffling, and error-prone data entry. The system automatically confirms employee eligibility based on company data, reducing administrative burden. Additionally, user-friendly tools empower employees to make informed benefit selections, minimizing HR inquiries. Here are some ways automating enrollment data generation and billing frees up valuable time for the HR team to focus on talent acquisition, development, and employee engagement.
1. Empowering Employees
Intuitive user experience and mobile accessibility are key to empowering employees. Easy-to-navigate interfaces and personalized dashboards provide clear benefit options, while cross-platform access, including mobile apps, enhances employee engagement and satisfaction. A frictionless digital experience equips employees with the tools to choose the right benefits, fostering informed decision-making confidently.
2. Streamlining Enrollment
Automated processes and cloud-based convenience revolutionize enrollment. End-to-end enrollment platforms eliminate paperwork and manual tasks, allowing employees to select plans and update information from any device effortlessly. This streamlined approach reduces errors and saves valuable time and resources.
3. Additional Benefits for SMBs
Maintaining accuracy and compliance is crucial for small businesses. Built-in compliance features and expert guidance protect businesses from costly errors and violations, ensuring benefits programs adhere to the latest regulations. A centralized platform consolidates benefits administration into one hub, providing relief for small teams. Managers can focus on core business functions by automating tasks and optimizing efficiency and productivity.
Another critical step is transitioning from paper-based processes to digital enrollment platforms. These platforms streamline data entry, reduce errors, and improve efficiency. Employees can easily select plans, update personal information, and access benefit details through a secure, cloud-based system. This saves time for employers and employees and enhances the overall enrollment experience.
Successful employee benefits management is essential for the overall health and growth of SMBs. By leveraging technology to streamline enrollment processes, employers can enhance employee satisfaction, reduce costs, and improve operational efficiency. A well-executed benefits strategy, supported by robust technology, empowers employees, fosters a positive work environment, and ultimately contributes to the business’s long-term success.
