The ultimate guide to choosing benefits administration software (plus 7 top picks)

One of the most time-consuming tasks on HR’s plate is data entry. It’s so time-consuming that 64% of HR leaders said they spend 4-9 hours per week on data entry between their HRIS, payroll, ATS, and benefits administration systems. As HR leaders look for solutions to reclaim those precious hours, many are looking to technology to help them streamline regular tasks. Enter: benefits administration software.

Between qualifying life events, onboarding and offboarding employees, and keeping up with regulatory changes, benefits administration is a full-time job—and that doesn’t even include the challenges that come with open enrollment season! With the right benefits administration software, you can take back valuable time and improve the employee experience. But benefits administration tools aren’t one-size-fits-all. Finding the best software to fit your unique needs is essential, and we’re going to dive into how to do it.

What is employee benefits administration?

Before we jump into the software, let’s take a minute to break down what employee benefits administration involves. In short, it’s the process of managing all aspects of your company’s employee benefits program. This includes:

• Designing and implementing benefits packages
• Managing open enrollment
• Processing benefits changes due to qualifying life events
• Staying compliant with laws and regulations
• Educating employees about their benefits options

What is benefits administration software?

As you can probably guess, employee benefits administration software is a digital tool that helps benefits administrators automate and streamline many of their tasks. These programs specialize in different aspects of an HR leader’s job, making their lives more efficient.

Why should you use benefits administration software?

Benefits administration tools are an investment, so it’s important to understand the benefits before moving forward with one. You’ll need to make the case to leadership, and you’ll want to be well versed in the uses so you get as much value as possible out of yours. Here are a few things benefits administration software can do for you:

• Save time: Automate tasks and free up your HR team for more strategic work.
• Reduce errors: Minimize the risk of mistakes in your benefits calculations and data entry. Just one typo during the manual entry process could be terribly expensive, and automating the process helps prevent this.
• Improve the open enrollment experience: Make it easier for employees to understand and choose their benefits during this critical time.
• Educate employees: Provide year-round access to benefits information and resources, not just during open enrollment.
• Boost employee satisfaction: 50% of employees say a better understanding of their benefits would make them more loyal to their employer, and a good benefits administration tool can have a direct affect on that understanding.

How do you choose a benefits administration software?

Just because you need a benefits administration program doesn’t mean you should just go out and purchase the first one you can find. There are different tools for different needs, so you should go into your search with a strategy and a list of needs in mind.

Check for integration capabilities

Your benefits administration software should play nice with your other HR systems. Make sure it can seamlessly integrate with your HRIS and payroll software to maximize your efficiency. When your systems share data, you cut back on a substantial amount of data entry for HR.

Decide on the functionalities that are most important to you

Which features are non-negotiable for you? Some programs have better reporting capabilities, while others have a more user-friendly interface. You may not be able to find a program that checks all of the boxes you want, so take some time to think about which boxes you need the most.

Set your budget

Benefits administration software comes in all shapes and sizes—and price points. Some programs work on a yearly contract, while others use a per-employee-per-month (PEPM) pricing model. Know your budget before you start shopping for programs.

Ask your employee benefits broker

Your benefits broker should be a massive resource here. Brokers often know benefits administration systems intimately and can help you identify what may or may not work with your current benefit structures. This additional insight could save you from unexpected delays or errors in implementation that could cause negative downstream impacts.

Beyond that, brokers may even be able to subsidize or help implement the system for you, saving you both time and money.

7 benefits administration software options we love, and why

Now, let’s get into the good stuff. Here are seven benefits administration software options that we love—and why we think they might be a good choice for your organization.

Ease

Ease? Yeah, it lives up to its name thanks to its user-friendly interface. We love the intuitive platform and excellent customer support. If you’re looking for a straightforward solution that doesn’t sacrifice functionality, Ease could be your tool. It’s a great choice for small to midsize businesses that want to streamline their benefits processes without a steep learning curve.

Rippling

Rippling is one of the most versatile HR platforms out there. This all-in-one solution offers powerful automation for everything from payroll to IT management. We’re impressed by its ability to easily handle complex tasks. If you’re in the market for a comprehensive HR solution that can grow with your business, then Rippling is worth a close look.

ADP

When it comes to features and scalability, ADP is hard to beat. This industry giant offers benefits administration solutions that can handle the most demanding needs of large organizations. We love its wide range of customization options and extensive industry expertise. If you’re working with a larger company with an intricate benefits structure or multiple locations, then ADP could be the powerhouse you’re looking for.

Namely

Namely stands out thanks to its intuitive design and strong focus on employee engagement. We’re fans of its self-service options, which empower your employees to manage their own benefits on the platform. This could be a great fit for you if you’re looking to boost your employee engagement while delivering an interactive benefits experience.

Paylocity

Paylocity’s flexible pricing makes it an excellent fit for businesses of all sizes—from small, scaling startups to enterprise organizations. Additionally, its robust library of integrations with other best-in-class HR software ensures seamless data syncing between platforms. This makes data for tasks like expense reporting, applicant tracking, and performance management readily accessible, all within a single system.

Gusto

This playful program brings a breath of fresh air to benefits administration with its modern, minimalist interface. We love how Gusto has made benefits management accessible, and even enjoyable, for small businesses and startups. The platform is intuitive, the pricing is transparent, and Gusto offers plenty of features for the price point. You’ll probably love this tool if you’re working with a small business or startup that's looking for an affordable, user-friendly option.

Employee Navigator

Employee Navigator comes with strong benefits management features. We appreciate its comprehensive suite of administration tools, covering everything from enrollment to COBRA administration. Employee Navigator is a great choice for HR professionals looking for a solution that's tailored to their specific needs.

If you’re still feeling overwhelmed by your HR administration needs, we’re here to help. At Nava, we’re your partners in handling all things benefits, from administration tools to custom packages. Contact us to see how we can help.