Over the past several years, benefits have become an increasingly important part of successful employee recruitment and retention. In one 2018 survey, 80% of respondents said they would choose a job with benefits over an identical job that offered a 30% increase in salary.1 The acknowledgement that different generations—Boomers, Xers, Millennials—have different benefits wants and needs has led companies to expand and customize benefits offerings. Between 2017 and 2018, the top 60 benefits grew in popularity.2 Also in 2018, 72% of organizations said they increased their benefits to retain employees.3
In many cases, however, company technology has not kept pace with the rising demand for new and diversified benefits. Today, 68% of employers still use an outdated siloed benefit approach, with separate systems and processes, and separate websites utilizing separate passwords.4 (According to a TASC survey, 50% of companies use three or more separate platforms to administer their benefits.5) Here’s why that has become a major problem. And how the pandemic has brought that problem into sharp focus.
The problem with siloed benefits
The cumbersomeness and confusion created by siloed benefits has placed an increasing burden on HR, and IT, which, according to the analyst firm, Gartner, devotes 91% of its staff time to software maintenance.6 According to IDC, a market research firm, companies lose 20 to 30 percent in revenue every year due to inefficiencies from siloed business systems.7
Worse still, the hassle of accessing different accounts with different passwords and protocols under that model discourages many employees from taking advantage of the very benefits companies spend so much time and money offering. It’s not enough to offer a great selection of benefits. It’s important to understand that how you offer them can significantly affect employee satisfaction with what you offer. This is particularly true of Millennials, who are tech savvy and expect their digital user experience at work to be as seamless and efficient as their experiences away from the job. For example, “Jane” is 34 years old. She grew up on the computer and now uses her mobile phone to communicate, get information, make appointments, and buy goods and services. She chose to work for your company over a competitor because you offered a better assortment of the benefits that matter to her, including help with dependent care, wellness rewards, and pet insurance reimbursement. But because your company’s benefits are siloed, with separate user websites, separate passwords, different degrees of complexity, etc., her experience with those benefits is more frustrating than satisfying. The expectation today is for a single, seamless platform—one portal, one password, and a user experience that’s the same across all devices.
How the pandemic has changed the benefits game
Even before the pandemic, 90% of companies surveyed agree the ability to instantly configure a custom benefit plan to meet the unique needs of a multi-generational talent pool was somewhat to very important in attracting new talent and keeping the people they already have.8 The pandemic changed it from “important” to “essential.” The three to six months it can take to change or add benefits under a siloed approach is far too long to wait when companies find themselves needing to adapt to sudden, unexpected changes requiring new or revised benefits, as we saw with the switch from onsite to remote work. What the pandemic has shown us is that companies need the capacity to retool benefits in days, not months.
The answer is a single, fully integrated benefits platform
The solution is a switch from siloed benefits to a single, all-in-one integrated platform that makes benefits accessible through one website and with one password. Companies that convert to a single benefits platform not only have benefits that are easier and more efficient to administer today—they also have the capacity to introduce timely new benefits tomorrow. We mean that literally. With a single benefits platform like TASC’s Universal Benefit Account®, you can introduce a new benefit in as little as one day. You are always ready to adjust your benefit offerings, whether it’s in response to a global pandemic or to beat a competitor to market with a new benefit that gives you a hiring and retention advantage. And there’s no practical limit to how many benefits you can offer. Currently, TASC Universal Benefit Account includes 50 different benefits. And we’re adding more all the time.
Happier employees, administrative savings, and more responsiveness
A single platform benefit solution like we offer at TASC is a benefit you offer yourself and your business. Benefits programs that keep employees happy mean an engaged workforce—and according to one survey, companies with engaged employees see 233% greater customer loyalty and a 26% greater annual increase in revenue.9 In addition, integrating and automating HR systems to be more self-service can help companies cut the amount of time required for administrative tasks by as much as 60%.10 Perhaps most important of all these days, business post-COVID will mean being ready to change benefits quickly. TASC Universal Benefit Account makes it possible.
Sources:
- “30 percent salary bump? No, I’ll take the benefits,” Benefits Pro, November 2018: https://www.benefitspro.com/2018/11/29/30-percent-salary-bump-no-ill-take-the-benefits/
- “Employers Beef up Benefits to Keep Talent,” SHRM, June 2018: https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/employers-beef-up-benefits-2018.aspx
- Ibid.
- Guardian Workplace Benefits Study – 5th Annual, May 2018
- TASC survey of 36 companies, 2019
- “The Great Debate: One Integrated Business System vs. Siloed Applications,” NetSuite, 2016: https://i.crn.com/sites/default/files/ckfinderimages/userfiles/images/crn/custom/NetSuite_wp-ns-greatdebate.pdf
- “How Inefficient Processes Are Hurting Your Company,” Entrepreneur, December 2016: https://www.entrepreneur.com/article/286084
- TASC and CFOLC survey results based on responses from 93 employers (Aug. 2019)
- Employee Engagement: Paving the way to happy customers.” Aberdeen Group: https://www.verint.com/Assets/resources/resource-types/white-papers/aberdeen-employee-engagement-paving-the-way-to-happy-customers.pdf
- “How to Use HR Software to Save Your Small Business Money,” Small Business Trends, July 2018: https://smallbiztrends.com/2018/07/benefits-of-hr-software
