Employers Not Taking Full Advantage of Benefits Technology
May 10, 2017
Nearly half of employers use technology for benefits enrollment, yet few (22%) take advantage of technology for benefits education and communication, LIMRA research finds.
However, 41% of employers who do not have technology for benefits communications say they are interested in adding it in the future.
The survey finds 47% use technology for annual open enrollment and 42% use it for enrollment of new hires. Thirty percent use it for benefit administration.
According to LIMRA, many factors influence a company’s use of technology, with size being the biggest. Other factors that play a role in the use of technology include:
- age of workforce,
- how long the company has been in business,
- location of the company, and
- the type of industry.
The study finds satisfaction rates are high for almost every type of human resources technology. Employers are more satisfied with their benefits enrollment or administration technology if it is able to handle all of their benefits on one platform. Additionally, satisfaction seems to increase as companies add more benefits technology functions, including enrollment, administration, and communication.
However, nearly one in four employers are still interested in switching to a new benefits platform. They would be most likely to switch to obtain a better price or improved data security.LIMRA conducted an online survey in December 2016 of 1,403 private employers with 10 or more employees that offered insurance benefits and have been in business for at least three years.