Every company today, whether a small business or an enterprise, aims to save costs and streamline their business processes. That’s where management tools like benefits administration software come in.
As the software service industry grows, so does the demand for HR software. Considering that companies need to save costs, human capital management software tends to automate several HR processes such as benefits management, onboarding, open enrollment, and talent management.
As the HR department slowly turns into a software solution, SaaS companies tend to come up with new and improved processes for a competitive edge.
For that reason, I compiled a list of the top benefits administration software and what they’re doing differently that sets them apart.
Let’s dive right in.
What is Benefits Administration Software?
Benefits management software is any software system that helps HR managers effectively provide and manage employee benefits.
They enable HR staff to develop benefits programs and deliver standard benefits such as a 401(K), medical insurance, paid time off, etc.
Benefits Administration software can facilitate HR staff with the following tasks:
- Tracking employee attendance
- Batch-processing benefits for teams
- Managing retiree pensions
- Integrating with payroll processing software
- Generating benefits delivery receipts
- Delivering performance-based benefits
Additionally, these systems can help companies stay compliant with the local, state, and national regulations related to employee benefits.
Some benefits management tools come as part of a more feature-rich HR software system. In that case, they can be used to automate a company’s entire benefits delivery process.
Why GoCo as an Employee Benefits Administration Solution?
Over the years, I have tried several benefits management software and have always come up short. There are several good benefits platforms, but I never found any of them to streamline everything I needed until I started using GoCo.
GoCo is a complete management solution and HRIS that is designed to automate and simplify HR processes. In this case, GoCo has helped me develop effective benefits programs, benefits packages, and entire benefits plans.
They’ve also provided continued support that helps make sure I’m staying compliant with laws like the Affordable Care Act (ACA Compliance).
Personally, I would say that GoCo as an HR platform is something all SMBs should consider. I’m sure if you ask a SaaS consultant to give you an HR solution recommendation, GoCo will be at the top of their list.
10 Top Benefits Administration Software
GoCo is an all-in-one HR software and HCM solution that provides benefits enrollment, benefits administration, real-time applicant tracking, performance management, learning management, onboarding, talent management, and payroll services in one place.
GoCo’s interactive dashboard is designed to be user-friendly and configurable while providing you with all the bells and whistles you can expect in a complete HR software.
Along with the typical features, GoCo also includes features like PTO management, employee self-service portals, time tracking, employee data management, employee lifecycle management, a mobile app, and access to several insurance brokers.
With GoCo’s benefits administration, you can set up the usual benefits like health insurance and life insurance, along with other benefits. The system also automatically assigns them to the right employees. All you have to do is include insurance carriers, health plans, and sources for other benefits.
Your employees can integrate with third-party benefits providers (benefits syncing) or with their previous benefits administrator. The self-service portal allows employees to manage their benefits this way and also lets them check all the benefits they have.
Employees can effectively manage every benefit from health insurance to FSA, HSA, 401k, pensions, and any other benefits the company provides.
Rippling is an HR software with a dedicated benefits administration section. Designed for SMEs, the software is known to provide a complete set of features including onboarding and payroll at a decent price.
However, the software is not ideal for people who travel a lot since the mobile app doesn’t support benefits management.
If you already use Rippling as a human resources software, you can get benefits administration for free. You will also get access to custom reporting, new hire management, and helpful tips in the process.
The software offers support for third-party integration and COBRA management. You can set it up relatively quickly, making it a great option for smaller companies looking to try out new HR software.
Gusto is also a complete human resources solution that has gained a lot of traction in recent years, especially in the United States. It has payroll functionality, onboarding options, and a complete benefits management section. You can get features like workers comp and management with an upgraded package.
The best thing about Gusto is that it is designed to cater to small businesses and to further differentiate themselves, they provide 3 different price packages for different kinds of small businesses.
Furthermore, the software fully supports third-party integration in case a company has a payroll management account with a different service.
Gusto’s mobile app supports the entire operation so you can handle your HR processes on-the-go. The company also offers lifetime employee access to paystubs and W2s.
Since Gusto is a relatively small company, you might run into issues with customer support. You may not be able to get the support you require 24/7, especially if you’ve opted for a lower-price package. You should also keep in mind that the company is limited in providing benefits in some states. For example, you can only provide health benefits with Gusto in 22 states.
Zenefits is a dedicated HRIS solution that is designed for SMEs and startups. While the software provides lots of HR services, it’s primary focus is on benefits administration. Additional services include payroll processing, onboarding solutions, performance management, and automatic enrollment processes.
The software’s interface is optimized for user experience and provides a detailed overview of all your employee data and records. It provides tools to automate your benefits administration and provides options for benefits plan-building.
However, while you can take advantage of the software on a computer, you will be limited in what you can do on the mobile app. That’s because the mobile app doesn’t support a lot of the admin tasks – which may be problematic if you tend to travel a lot for your business.
On the other hand, the employee mobile app is very well-received and provides all the options you would expect in an employee portal.
Generally, Zenefits provides most of the services you would expect in a benefits administration software, but what makes it different is that it provides extensive business intelligence reporting options. These reports are designed to help you make better and more informed decisions.
BenefitsPlace by Benefitfocus is a benefits administration software that has been in development for a long time. Over the years, it has been developed, upgraded, and turned into a complete benefits management solution for small and medium-sized businesses.
Years of development have allowed the company to develop an app that has complete functionality and reporting options. You can practically control your company’s benefits plans from your mobile phone.
The company has also developed educational content and tutorials for new users and provides an option for SAP integration for increased functionality.
However, despite providing every benefits-related service you could ask for in one place, the company doesn’t do a good job of relaying information related to the software. Since there are different price points, there isn’t much information on what services you’ll get with a certain package.
Furthermore, a lot of users have inferred that the software interface itself is not very user-friendly.
Since Benefitfocus is a dedicated benefits administration software, if you have additional HR services, you’ll either have to integrate other compatible software or opt for a completely separate service.
6. ADP Workforce Now
ADP Workforce Now is ADP’s answer to HCM solutions and is designed to cater to companies with more than 50 employees, at the very least.
The software provides a range of services including benefits administration, HR analytics, workforce analytics, payroll management, and performance management. The best part about the software is that once it’s set up, it will automate most of your admin tasks.
The tool also has a dedicated mobile app along with an employee self-service portal that lets employees check their paychecks, timecards, W2s, benefits, and employee data, as well as, enroll for benefits themselves.
The software allows for third-party integration that is compatible with most software. ADP’s automatic syncing option reduces the number of manual entries you have to make, helping with seamless integration. There’s also an alert system that sends out automated messages when there’s an error that requires human input.
Furthermore, ADP has over 2,500 experts that continually monitor changes in regulations and compliance practices to make sure all clients remain compliant.
Last, but not least, the software dashboard is interactive and easy-to-understand. It showcases everything from compliance status to eligibility requirements. It also lets you develop entire benefits plans, manage your benefits budget, and compare benefit providers.
PlanSource is a completely cloud-based benefits management software. It also offers some other HR services such as payroll management and onboarding solutions.
PlanSource is somewhat of an open-source software – it gives you the freedom to develop different kinds of benefits plans, programs, and models. It’s also customizable and offers configurable benefit presets. Each model and plan can be modified in how they’re deployed, the amount of contributions, and other additional parameters that can be set to differentiate the plans for different kinds of employees.
The software also provides talent and workforce management services designed to make sure your workforce is in good shape.
The company is also known to only deal with top insurance companies and benefits providers. This allows their clients to provide benefits from the best providers at competitive rates.
The software also allows for COBRA program administration and custom communication networks for employees. It also allows you to handle all of the benefits enrollment, shopping, and billing so that you can have a unique benefits program.
BambooHR is a complete HR suite that is built for small businesses that benefit from having all their processes centralized.
The software has one of the best benefit tracking tools you can find in the market. It lets you track benefit plans across 12 different benefit types for several employee groups at the same time.
It also has a dedicated compliance tracker that tracks things like ACA compliance and other regulations to inform you if you’re lacking somewhere.
BambooHR has an option where you can track, check, and manage historical information such as the cost, enrollment, coverage, and providers you’ve used in the past (even if it was while using another software).
Furthermore, you can find all of the tools and reports on the mobile app, making it easy to control your HR processes on-the-go.
You can opt for a 7-day free trial to check if the software works for you. The setup is fast and simple and can be reverted just as easily so there’s no immediate long-term commitment.
However, BambooHR doesn’t provide some additional features like time tracking or attendance tracking. Additionally, some of the more specific tools like performance management and talent management tools are locked behind extra fees.
PeopleKeep is a benefits-based software designed for small businesses with 50 employees or less. However, they do have a package for companies with more than 50 employees.
Since the software only provides benefits administration services, it goes one step further in customizing that aspect. For example, the employee self-service portal lets employees buy and make their own benefit plans and packages based on the budget and options provided.
That is why most users have praised the software for its user-friendliness and intuitiveness. It also has a built-in receipt upload option for third-party receipts. You also can integrate and sync other benefits providers and plans with the platform.
The biggest disadvantage PeopleKeep currently has is that it has no mobile app and is only optimized for desktop browsers.
But then again, the software is built for small companies that don’t have a lot of employees. Most HR-related processes and tasks can be taken care of in a few days and can be scheduled so they don’t require changes on-the-go.
Namely is an all-in-one HR software designed for small businesses with 50 or more employees. It has a dedicated benefits administration plugin that allows for complete control of all benefits management.
The software also provides payroll, onboarding, performance management, talent management, and time tracking features.
Namely is known to provide one of the biggest assortments of insurance providers and benefits from all over the US. You can choose your benefits from practically any provider and can change your provider with the click of a button.
The software also has a mobile app with full functionality and is fully customizable. It supports third-party integration with practically every other software of the kind and automatically syncs your data after integration.
The company also provides you access to their online community of over 1,000 HR leaders and experts who can help you set the software up, along with your benefits plans.
However, the software might not be feasible for companies with less than 50 employees since it may be costly. Additionally, some of the features might not make sense since they’re designed to manage a large number of employees.
Choosing the Best Benefits Administration Software for Superior Workforce Management
The dynamics of the HR world have changed a lot over the years – especially when you consider how we’ve moved from manual benefits administration and other manual HR tasks to cloud-based processes.
This change has helped employees and companies save time, resources, and efforts that are better used elsewhere. Over time, a good benefits administration software will also save you administration and management costs while making your HR department more efficient.
However, when it comes to choosing the best benefits administration software for your company, it depends on a few factors.
For me, GoCo has worked best considering I run a tight ship with a lot of remote employees.
If you’re looking to choose a benefits administration software or an employee onboarding software, you need to consider the number of employees you have, the kind of employees you have, the size of your company, your budget, your HR requirements, your industry, your overall management system, and how much support you will require.
Considering these factors, you should be able to decide which benefits administration software is best for you and your company.