Flexible benefits platforms are becoming increasingly popular. According to research published by Staffcare in October 2014, 80% of employers with more than 100 staff offer some form of flexible benefits scheme , compared with just 11% a decade ago.
Choosing the right benefits for employees is one thing but delivering a successful employee benefits strategy is about understanding the complete picture and delivering it in a personalised way so that it resonates with each and every individual in a business. That is where flexible benefits technology can be invaluable, to help employers maximise value for money and the positive impact of the benefits they offer.
Here are our top five considerations for employers looking to choose flexible benefits technology.
1. Identify its capabilities
Firstly, identify its capabilities. Just how flexible is the technology ? For example, can it interface with the HR information system and payroll platform? Does it meet the organisation’s requirements now? And if the employer decides to change or add extra functionality, is this simple and easy to do?
Can the technology enable automatic updates in line with legislative changes? For example, how easily can it update tax bands for net pay modelling and national minimum wage levels?
Also, how flexible is the technology to cater to individual employees’ needs? As more employees seek to tailor their benefits to suit their requirements, a one-size fits-all approach may not be suitable. Can it deliver different tiers of benefits to employees based on a set of rules, such as age or length of service? Can it offer multiple enrolments to give staff flexibility and control to alter their benefits as and when it suits them? Make sure the technology can provide tailored benefits that will help reward and retain employees.
2. Security considerations
Second, be secure. Legally, a chosen technology platform must comply with data protection regulations. So choosing a platform that meets certain security standards is essential. This could include secure file transfer protocol (SFTP) to ensure that data is imported and exported securely to and from the system.
Employers should also consider how the technology is accessed. Is it externally hosted or does it need to be installed on their internal IT infrastructure? If it is web-based, is it compatible with all main browsers?
Also, how will the platform handle user access? Can the employer assign ‘role-based’ security, for example managers or administrators, so that users can only see the data they are allowed to see? And does the platform track user activity to automatically flag any suspicious activity?
3. Check its scalability
Third, check its scalability. Global mobility of employees is on the rise, with nearly 57 million expats predicted by 2017, according to Finnacord’s report Global Expatriates: Size, Segmentation and Forecast for the Worldwide Market 2014 , published in January 2014.Do employers really want to have multiple platforms for every country that they operate in?
If they have existing overseas employees, or the potential to have them in the future, they may want to choose a platform that can span different countries, languages, currencies, tax treatments and legislative requirements.
4. Get value for money
Fourth, get value for money. Large implementation fees can often be more about supporting a platform’s business model than a reflection on the actual work required, so employers should make sure they are getting value for money. What else can the platform offer?
According to Employee Benefits ’ Benefits Research 2013 , published in May 2013, nearly three-quarters of employers believe that employee engagement is a key issue in driving employee benefits strategies, so a platform that communicates benefits in a way that engages staff is vital. Platforms that enable employees to see their complete picture – and present them with the relevant information to make informed decisions easily – are invaluable.
5. Is support available?
Finally, find out what support is available. The hard work does not end after an employer has implemented its benefits platform. What ongoing support will the platform provide to ensure the benefits strategy is a success in the long term? Can the platform give a single view of your benefits? How easily can the organisation access management information (MI) to monitor performance against its key performance indicators?
Richard McKinley-Price is head of benefits management at Jelf Employee Benefits
