With the cost of employee benefits, particularly healthcare, rising every
year, companies are seeking new ways to reduce the costs associated with benefits administration. Many are turning to
technology in an effort to create the most efficient HR workflows possible, using savings in time, materials and
resources to help offset the rising cost of insurance programs.
One way to lower the cost associated with open enrollment is to automate the benefits selection process so that
employees can make their selections directly through an online software solution. This eliminates the need for benefits
administrators to distribute paper kits, collect benefits forms and manually re-enter the data collected in the HRMS
system. It also reduces the time spent answering employee questions because the benefits enrollment system can become
the one-stop resource for employees to gather information about their benefit options.
Using technology to lower costs while providing better service to employees satisfies the needs of both HR departments
and the employees they serve. Companies that have deployed self service tools have enjoyed improved data accuracy,
reduced costs and greater work efficiency for benefits administrators. The Towers Perrin research group found that HR
departments using web self-service reported greater timeliness of employee data, a 38 percent improvement in accuracy
and workloads reduced by 50 percent.
In addition to reducing the costs associated with benefits enrollment by eliminating paper and postage, online
self-service benefits applications can also save money by reducing the time required for open enrollment periods. A
2002 survey by Cedar Group found a 62% reduction in cycle time using self-service technology with enrollment periods
shortened from an average of four weeks down to one week.
Employees also report greater satisfaction when they are empowered to review and change personal, payroll and benefit
information. A research survey by the World at Work Group revealed that 74 percent of employees are happier with their
benefits packages after gaining access to self service applications.
It is rare to discover a cost-cutting tool that also increases employee satisfaction with their HR department. Perhaps
that is why one of the strongest trends in HR today is the move toward more online, self-service software applications.
