A recent report reveals significant obstacles HR teams face, impacting employee education on benefits.
- HR teams spend over 25% of their week on administrative tasks, hindering strategic initiatives.
- 73% of employees desire more education on company benefits to enhance their financial wellbeing.
- Generational differences in benefits understanding and participation highlight gaps in education.
- Manual processes are prone to errors, prolonging problem correction and diminishing efficiency.
A recent report underscores the significant administrative burden faced by HR teams, affecting their capacity to educate employees about company benefits. HR professionals are devoting over one-fourth of their workweek to administrative duties related to payroll and benefits. This overwhelming amount of time spent on rote tasks leaves limited opportunity for HR to focus on more strategic activities, such as enlightening employees about crucial benefits and optimizing their understanding and utilization of these offerings.
The report highlights a compelling need from employees for greater education regarding company benefits. Specifically, 73% of employees have expressed a desire for more comprehensive insight into the offerings available to them. This demand reflects a broader trend where informed employees are more likely to participate actively in available benefits, thereby enhancing their financial wellness.
Generational differences in the understanding and participation in company benefits underscore the necessity for tailored educational strategies. Millennials, notably, feel the most well-versed in their benefits, with 31% indicating comprehensive understanding. Conversely, only a quarter of Gen Z workers share this sentiment. This knowledge gap translates into differing levels of benefits utilization. For example, educated employees are significantly more inclined to engage in Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), compared to their less informed counterparts.
Furthermore, the report reveals systemic inefficiencies within HR processes, particularly those reliant on manual operations. Mistakes in payroll and benefits are not uncommon, and when they occur, they often take more than a week to resolve. This inefficiency is largely attributed to a reliance on outdated systems and processes. However, technology is beginning to play a pivotal role in mitigating these issues, with 79% of HR teams acknowledging that tech integration is helping to reduce errors and improve workflow efficiency.
In summary, the report from Payroll Integrations, produced in conjunction with Dynata, paints a picture of a workplace environment where administrative burdens are holding back the full potential of HR teams. By modernizing processes and prioritizing employee education on benefits, companies can foster a more informed workforce, which is then better equipped to take full advantage of the offerings designed to support their financial well-being.
Streamlined HR processes and enhanced employee education on benefits are essential for improving workforce engagement and efficiency.
