For human resources departments, implementing technology solutions for daily tasks is the new normal. HR professionals are embracing technology in various facets of their jobs — everything from recruitment to onboarding to employee leave to wellness programs.
It is estimated that the HR software industry will grow to over $10 billion in 2020. This number isn’t surprising to us, given that 66 percent of participants in our 2018 Western Kentucky Employee Benefits Benchmarking Survey say they have incorporated HR technology solutions in their workflow.
To better understand the prevalence of tech in HR today, consider the growth of open enrollment participation. According to Aflac’s 2018 WorkForces Report, online open enrollment jumped from 38 percent in 2011 to 61 percent in 2017. That adoption trend continues at a steady rate.
Why are so many companies investing heavily into technology to support their HR team? Simply put, they save time and money while improving employee experiences with company-related programs. Technology solutions allow HR departments to collect and analyze key data which can be used during performance reviews, to improve the open enrollment experience, to create wellness plans with high engagement rates, and much more.
Migrating to a feature-rich HR software solution streamlines departmental workflows and frees up the HR team’s time to focus on improving employee engagement and educating employees on benefits. If utilized at a high level, management should be able to track ROI to demonstrate that time is money when your HR functions are more efficient and effective. The budget savings from technology efficiencies may not only offset the technology investment, but could also mean that surpluses are used to increase the amount contributed to employees’ Health Savings Accounts or to fund wellness program rewards.
A Solution for Every Challenge
Our 2018 Benchmarking Survey took a closer look at what tasks HR professionals perform through technology. The top response: Benefits Administration. Other common applications included Affordable Care Act (ACA) tracking and reporting, open enrollment, performance management, payroll, time and labor tracking, employee onboarding, human resources information system (HRIS), and applicant tracking.
(Insert chart from p. 16 of the Benchmarking Survey here, if helpful/applicable? The chart we pulled is just a screenshot from the PDF, so be sure to insert the original source for higher quality.)
Wellness Program Technology
Does your company offer employee wellness incentives or programs? These types of programs used to be focused on encouraging employees to lose weight or quit smoking at the simplest form or provide a holistic approach to many areas of life. No matter how extensive, wellness programs take a data-driven approach to promoting employee health. Employees now have access to software and apps that provide encouragement and reinforce goals to walk more each day, choose healthier foods, and to spend quality time with friends and family.
Through technology, employers can easily and quickly track employee participation and see what types of incentives currently are working for employees and which ones need retooled. A digital platform also allows employees to offer personalized experiences for each employee, which increases participation.
Boosting Employee Engagement is a Win-Win
With healthcare costs continuing to rise, many companies have opted to implement HR technology solutions to improve both their employees’ experiences and their bottom line. These tech solutions give employees ease of accessibility and a streamlined enrollment experience. Better data management and reduced staff time handling administration matters translate to significant cost savings.
In fact, according to Bersin by Deloitte, companies with newly upgraded HR systems see cost savings of 22% per employee. Particularly important in a competitive hiring environment, that means your company can focus on providing improved benefits to your employees and rewarding, retaining, and growing your talented workforce.
Technology can help improve employee engagement and boost morale. If you have questions about how to best integrate HR technology with your benefits systems, please contact a member of the Peel & Holland Employee Benefits team. We’d love to help.