Human Capital Management

Human Capital Management

March 22, 2012

Employers Seek Technology to Reduce Costs and Improve Employee Benefits, According to Prudential Financial

Enterprises are seeking ways to save on input cost through shedding employees, terminating benefit programs or using technology to reduce production and operational costs.  It’s therefore not surprising that a study by Prudential Financial Inc. revealed more than half of U.S. employers say they’re expanding the use of technology to manage costs associated with employee benefits programs.

‘Prudential’s Sixth Annual Study of Employee Benefits: Today & Beyond’ has showed that employers expect the importance of benefits technology to grow substantially over the next five years, according to a press release.

The study found that half of the employers (51%) say it is important that their benefits systems interface with their insurance carrier’s systems. Nearly 59 percent of employers are looking for their insurance carriers to offer “plug and play” – the flexibility to adapt and connect to other carriers or a third-party administrator. More than 50 percent of employers agreed they would increase their use of online tools if their websites were easier to navigate.

The survey also showed a low to average use of online benefits tools among employees.  

Research was done over the Internet during April and May of 2011, and consisted of three distinct surveys of plan sponsors, plan participants and broker/consultant audiences.

“Employers are looking for their insurers to do more than pay claims,” said Joseph M. Hayes, chief information officer of Prudential Group Insurance. “They want a streamlined benefits process using technology that allows their employees and benefits administrators to connect directly with their insurers.”

 “One of the most valuable features of benefits technology is the ability to monitor and track absence,” explained Hayes. “Since worker productivity heavily impacts the cost of doing business this can be a vital tool in managing the bottom line.”

Edited by Braden Becker

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