- A survey of 500 HR professionals and 1,000 employees found that 18% of workers in global companies aren’t happy with the way they access and enroll in their companies’ benefits plans. And 17% dislike the way benefits are explained to them.
- Thomson Online Benefits, an international software company, released the findings in its Global Employee Benefits Watch 2016/17 report. The company also found that, although 90% of employers in the study view benefits as crucial to their recruiting and retention efforts, 70% fail to offer benefits plans that effectively engage workers across the globe and help them understand their benefits’ value.
- Outdated technology is the likely cause of employees’ frustration. Companies might not have kept up with technological upgrades in benefits administration.
Human resource management systems, especially in big companies, are five years old on average and nearly half are seven years old. In the evolving technology world, seven-year-old systems are obsolete. Employees typically access benefits only when they need to, but when they do, they expect a speedy process that pulls up easy-to-understand information.
Benefits are a sizable expense for companies. They account for 31.4% of workers’ total compensation, reports the U.S Bureau of Labor Statistics. Upgrading an obsolete HRMS that improves the way employees access and decipher their benefit plans is well worth the cost.