Good benefits help you attract and retain the top talent in your field. More importantly, they help you look after your employees’ well-being.
However, offering employee benefits results in the need for more administration from the HR department. As your team grows, benefits administration will become ever-more time consuming. You’ll likely start to look for ways to reduce the workload associated with this HR task.
An HR platform can help reduce the time commitment required. Before you choose a platform, however, you’ll want to know if your HRIS connects directly to insurance carriers. Known as “carrier connectivity,” this feature provides many advantages. Find out why an HRIS with true carrier connectivity is key to effective benefits administration.
1. It Eases Switching Providers
Many companies stick with their insurance carriers far longer than they should. One reason may be contentment. You enjoy working with your broker or insurance agent, so you’re reluctant to switch. You may believe they do a good job and look out for your best interests. There are many cases where this is true.
There are also many cases where insurance carriers look out for themselves, not their clients. Over time, your broker or insurance agent may stop shopping your account around. They may believe keeping your business is a given, and they’ll stop working to find you the best value for your employee benefits.
Switching providers is the best way to avoid this situation, and you should always ensure you’re getting the best value and providing your employees with a truly great benefits package. Some HR managers and business owners are reluctant to make the switch, however, because it may require paperwork or extra administrative attention the HR team doesn’t have time for.
If your HR platform connects directly to insurance carriers, it’s much easier to switch companies. You can unplug your data from your current carrier and easily port it over to the next. If you’ve been worried about switching providers, rest assured the right HR platform can make it much easier.
2. It Reduces Paperwork
If your benefits administration is still largely done on paper, it’s time to make the switch to an HR platform. If your HR employees are using a platform, but they’re still spending time couriering forms between your employees and insurance carriers, it’s time to find an HR platform with carrier connectivity.
By directly connecting your platform to your insurance provider, the HR platform makes transmitting benefits paperwork instantaneous.
It’s important to note, however, that many HRIS providers claim to have carrier connectivity but do not offer true connectivity. You may be able to export your benefits data from your HRIS, but you will still be required to manual send the changes and updates to your insurance carrier, whether by fax, email, or mail.
JungoHR is the only HRIS provider with the benefits expertise and strong relationships with insurance carriers that enables them to offer true connectivity—meaning your changes are made automatically. Other providers are tech companies that offer an HR platform—they aren’t in the benefits industry and cannot offer the connectivity required to save time and effectively use resources.
3. It Gives You Time for Strategic Thinking
When you invest in an HRIS that boasts true connectivity, your HR staff employees will be free to look after more important tasks than sending over files. The process of updating employees’ benefits profiles is the same whether you have 20 employees or 2,000. The information will be automatically sent to your insurance carrier, without the need for manual filings. Simply add the changes to your HRIS and your insurance carrier will be alerted.
When you save time on repetitive and labour-intensive work, you’ll have more time for strategic thinking. For example, rather than making manual changes to employee files day after day, you can spend that time finding ways to power your company’s growth with compensation management instead.
4. It Simplifies Communication
Much like benefits paperwork can turn into a time-consuming task for your HR staff, so too can communicating about benefits. Errors and duplicated data can cause issues in benefits administration, as can claims from terminated or ineligible employees.
Streamline communication with an HR platform offering carrier connectivity. By directly connecting with insurance carriers, the platform can help you get data entry correct on the first try.
There are many reasons you should be using an HR platform to manage your core HR activities. Benefits administration, in particular, is simplified and streamlined when you use an HR platform that connects you directly to your insurance carrier. Consider an HR platform with this capability above all others.