Businesses have learned to do many things in new ways over the past two years. The business of human resources (HR) is no different. With the rapid adoption of remote work, the challenges of attracting and retaining talent, and evolving compliance and reporting requirements, a business’s benefits and how they are accessed and administered are more important than ever.
One new framework that is gaining traction is called Human Capital Management (HCM). This integrated approach consolidates and links functions of HR so businesses can enjoy the convenience of consolidating HR and benefit services with a single vendor.
Compliance: Efficiently Manage the Rising Tide of Reporting
Compliance rules are on the rise for retirement accounts, health savings accounts (HSAs), and other regulated benefits. A centralized system makes it easier to comply with regulations, and also helps HR professionals avoid costly mistakes. For example, failing to provide employee-requested contributions in a timely manner can result in penalties for an employer. The automation of an integrated HR benefits system makes such a situation far less likely.
Onboarding: Create a Positive and Easy Experience
An efficient onboarding experience helps orient new employees, sets them up for success and can improve their satisfaction. The ability to independently access and set up benefits helps new employees appreciate all their employer has to offer. The onboarding automation found in HCM systems makes the experience consistent and understandable and works remotely–a critical feature for businesses hiring people who may not be coming into the office.
Data Entry and Transfer: Empowering Employees, Ensuring Accuracy
A centralized HR system, starting with payroll, reduces one major headache all HR professionals face: Data management and integrity. A centralized system shares employee data, eliminating re-entry and it can automatically run repeated processes. If employees have their own login capabilities, they can take ownership of updating information about dependents, elections, or other personal data, saving personnel time and reducing the potential for input errors.
Communication and Action Items: Reach Everyone, Everywhere
HR professionals follow a calendar that is driven by regulatory and business requirements. During enrollment season, at tax time, or throughout an internal company initiative, an employer needs to reach all employees simultaneously with education and action items. A centralized system makes this easier. It can deliver messages, videos, documents, and can reduce time-intensive tasks, such as providing tax forms based on an employee’s state of residence.
Administration: Helping HR Professionals Make Good Use of Time
Integrating benefits eliminates the need to re-enter or transmit data, generally a labor-intensive process. Merely sourcing payroll, health, retirement, and other benefits from a single source may create these efficiencies. The vendor can offer automated integration across benefit offerings, and on a practical level, it means fewer vendors to manage, pay, and interact with, and less chance that changes made by one vendor will have a ripple effect through a company.
The business advantages of an efficient system can include freeing up HR professionals to spend time on strategic and employee-related matters, reducing errors that can lead to compliance issues and possible penalties, and increased employee satisfaction. If you want to learn more about consolidating benefits with one provider or about HCM, contact an Alerus business advisor today.
The information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Alerus does not provide legal or tax advice. Always consult an attorney or tax professional regarding your specific legal or tax situation. Alerus Financial, N.A. is member FDIC.