A new report highlights a critical gap in employee education regarding company benefits.
- HR teams are overburdened with administrative tasks, limiting strategic initiatives.
- Employee education on benefits strongly correlates with participation levels.
- There are significant generational differences in benefit education and engagement.
- Employers are slow to rectify payroll and benefit errors, affecting employee trust.
Employers are increasingly finding themselves at a crossroads when it comes to the administration of employee benefits. The new report shows that 73% of employees feel they require more education on the benefits offered by their companies. This gap in knowledge is attributed to HR teams being bogged down by excessive administrative duties.
HR teams reportedly spend over a quarter of their working week on payroll and benefit-related tasks, with 27% dedicating 20 hours or more. This administrative overload is stifling their ability to focus on educating employees about available benefits and their importance. Doug Sabella, CEO of Payroll Integrations, emphasises that dependence on outdated manual processes contributes significantly to these inefficiencies.
Employee participation in benefits is markedly higher when they are educated about them. For instance, those who understand Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) participate at three times the rate of those who don’t. Similarly, educated employees are more engaged in financial planning, lifestyle compensation, and retirement schemes.
Generational discrepancies are evident in the report. Only 31% of Millennials feel completely educated on company benefits, with Gen Z showing even lower levels of awareness. Notably, although younger employees are less likely to engage with retirement benefits, those who do contribute more significantly than older generations.
Administrative inefficiencies also manifest in the correction of payroll and benefits mistakes. Half of all employees report unresolved errors taking over a week to correct, highlighting a critical issue in trust and satisfaction among the workforce. However, 79% of HR teams recognise the potential of technology to mitigate these errors.
The report underscores the urgent need for modernised HR processes to enhance employee benefit education and engagement.
