Amidst increasing administrative burdens, employees express a growing need for better education on company benefits.
- A significant portion of HR teams’ workweek is consumed by administrative tasks, limiting their focus on strategic initiatives.
- New findings reveal generational differences in employees’ understanding and participation in company benefits.
- HR departments are turning to technology to reduce errors in payroll and benefits management.
- The 2024 State of Employee Financial Wellness Report highlights the critical impact of employee benefit education.
A recent report from Payroll Integrations underscores the significant challenges faced by human resources (HR) teams due to administrative burdens. The study, part of the 2024 State of Employee Financial Wellness Report, reveals that HR teams are spending a substantial portion of their workweek on administrative tasks related to payroll and benefits. Specifically, HR managers devote over 12 hours weekly to these processes, with 27% reporting even higher time commitments.
This preoccupation with administrative work hampers HR teams’ ability to engage in strategic tasks, notably the education of employees on company benefits. Notably, 73% of employees have expressed a desire for more information on this critical aspect of their compensation packages. The findings highlight a clear disparity between HR workload and employee needs, pointing towards the necessity for improved educational efforts.
The report, based on research conducted by Dynata, highlights the impact of benefit education on employee participation levels. Employees who feel well-informed about their benefits are more likely to take advantage of them, with significant participation differences observed between educated and uneducated employees. For instance, there’s a notable increase in participation in Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) among those who are informed.
Generational differences also emerge from the report, with Millennials feeling the most educated about their benefits. However, despite being early in their careers, Gen Z employees participating in retirement plans contribute more significantly than their older counterparts. This is partly attributed to their greater disposable income, allowing for higher contributions.
In an attempt to mitigate errors stemming from manual processes, HR teams are increasingly incorporating technology into their operations. This shift is aimed at reducing the time required to correct payroll and benefits errors, a challenge that currently affects many teams. According to the report, 79% of HR teams find technological solutions effective in minimising mistakes.
The findings underscore the crucial need for both enhanced benefit education and streamlined administrative processes within HR departments.
