What are the key performance indicators (KPIs) for benefits administration and how do you track them?

Are employees clearly informed about the benefits available to them? If benefits information is too complex, employees may not fully understand the options available or how to enroll. Are employees receiving enough time and reminder notifications to make their decisions? Offering educational sessions, webinars, or one-on-one consultations with benefits counselors can help clarify the value of enrolling. Are the benefits offered aligned with what employees value most? Conducting regular surveys or focus groups to assess employee preferences can help ensure the benefits package meets their needs. Offering incentives, such as prizes or discounts, can encourage employees to sign up for benefits they might otherwise overlook.

It is so important to make sure your employees are educated and they have support. They need someone who can answer their questions and listen to their situations and concerns. We truly try to put out lots of resources and do a great benefits presentation for new hires.

Tracking the benefits enrollment rate is vital because it provides insight into how well your benefits offerings are meeting the needs of your employees. A high enrollment rate suggests that employees find the benefits valuable and easy to access, which can lead to higher job satisfaction and retention. On the flip side, a low enrollment rate may indicate that employees aren't fully aware of the benefits available or don't find them relevant. By understanding this metric, administrators can make informed decisions to improve communication, adjust benefits offerings, and better align them with employees' needs, ultimately fostering a more engaged and satisfied workforce.

Employees will only enroll if they understand the benefits and see advantages over offers on the open market. To improve the rate, you can use surveys, videos, case studies and advice.

The term benefits really are meant to be just that, a "benefit". Unfortunately, many employees are not properly informed as to why these programs are offered at all. I find that many employees believe that the only true "benefit" that the workplace offers them is the wage. Sometimes a higher benefit enrollment rate just means that HR or the benefits broker is better at connecting with the employees and making the benefit matter to the employee. While Benefit Enrollment Rate is an important KPI the what to do with this metric I feel is not yet understood by the enrollment community.

Participation rate is one of the most important KPIs out there, and it’s crucial for companies to track this metric among their employees. This key indicator reveals whether the benefits plan in place is effective and truly resonates with the team. By closely monitoring participation rates, companies can gain valuable insights into the actual impact and relevance of their offerings.

Participation rate is certainly one of the most important KPIs. However, care should be taken not to count individual employees twice. Otherwise, this will lead to incorrect results and assumptions for further actions.

This metric is very rarely tracked in my professional experience. Possibly because the impact is so one sided. Benefit participation, like gym memberships, wellness rewards, and vaccination rewards pale in comparison to the one employee who got a $25,000 pay out for their diagnosis of cancer. While there are some brokers/agents who report numbers to HR, I feel it's rarely every celebrated, or addressed properly by management. Engagement is difficult when employers are not willing to put in the effort in making it relevant. Everyone can relate to a friend or family member battling through cancer, the reality of the situation gets even closer when someone at work suffers from it. Rarely do people take vitamins, but always their pain meds.

The benefits satisfaction rate is one of the most important KPIs of all. Because the benefits are intended to help employees or relieve them financially. If they do not do this or do not do so sufficiently, the employer can consider whether and how to improve. Please do not base your decision on benchmarks or statements, but try to improve the benefits through an independent consultant. A good example of this is our case study from Singapore, which you can find on my profile. You will be surprised by the results.

Benefits Satisfaction rate is very subjective for employees, do they rank it based off of relativity, or utilization? Especially when most employees are unfamiliar with what's out there in the market. I find that employers do not tell their employees that many of the benefits associated with work, are only available through employment. For example, many of the work benefits like dependent care, FSA, HSA, Health Insurance, Group Insurance rates, etc. are ONLY available due to having a large group of employees and being able to absorb the management costs of setting up the legal compliance, and risk management that Employers can. Because they are employed they GET to access these benefits.

I find this point difficult. In many countries, benefits are required by law, as is the respective percentage of salary to be paid. It is also important to note that in many countries it is quite common to agree on deductibles or co-payments (e.g. USA). This reduces the premium, but the question is whether every employee can afford it. The result can be that employees go to the doctor too late and the costs for treatment are then higher.

Putting the horse before the carriage here. Benefit programs are very dependent on HR and the benefits broker's ability to truly inform the employee of the benefit, and how to properly use them. I have seen many FSAs go to waste, and many uninsured individuals not be able to afford taking the proper time to recover due to needing the return to work prematurely to cover bills like rent and food. In the benefits market Benefits ROI needs to be tracked properly by informing employees on how to truly make use of the benefits associated with work, and the gap it's meant to fill, and/or reward for being a part of the company.