New LIMRA research finds that more than half of employers still DO NOT have technology to handle annual benefits enrollment or insurance benefits administration (53 percent and 64 percent respectfully). Additionally, more than one in three employers who do not already have benefits technology are looking for a platform.
There are a variety of reasons employers give for not using benefits technology. Some commonly reported explanations include:
- Company culture,
- Ease of use,
- Personal preference, and
- Inability to find a system that will meet their needs.
What are they looking for?
Employers that already have some benefits technology are more likely to be looking for more technology. In all, 40 percent of employers without technology are looking for a benefit administration platform, while 35 percent are looking for an enrollment solution.
The top priorities for employers looking at benefits technology solutions are affordability and data security. Six in 10 employers want their data stored on their company’s own system rather than externally, allowing them to have more control over how the data is stored and protected.
Employers surveyed say they want a platform that is easy for their employees to use and offers decision-support tools to help them understand their benefits. Employers also want the ability to have year-round access to the platform so they can use it to enroll new hires throughout the year and support ongoing life events or benefit coverage changes.
But will they pay for it?
While more than 20 percent of employers are not able to estimate how much they would pay for benefits technology, of those who can, the majority would not pay more than $2 per employee per month. One in six (most being small businesses) don’t want to pay for benefit technology at all. On the positive side, companies that already have a benefits platform are willing to pay considerably more since they already see the value technology brings to their company and employees. Also, employers who do not currently have benefits technology but are looking for a platform show a greater willingness to spend in the investment.
For more details on what companies want and don’t want from benefits technology, LIMRA members are invited to read the full report, Convenient and Connected: What Are Employers Looking for in Benefits Technology?
*The study is based on a December 2016 online survey of 1,403 private U.S. employers with 10 or more employees who offered insurance benefits and had been in business for at least three years.