The use and value of HRIS system or HRMS software Benefit Statements
In many cases, your employees don’t pay attention to how much you, the employer, are paying out for benefits. They start paying attention only after they hear about COBRA rates. A popular feature that is included with every HR Information Systems product is benefit statements. Basically, they provide employees with a total compensation statement. Jane Doe makes $30,000 a year but with the addition of the employer match on 401K and with the employer’s portion of insurance and dental she makes $35,000. If you the employer are offering ever more expensive benefits, it’s certainly important to let your employees know.
I have modified these reports many times and included the employer’s portion of social security, leave time, and additional benefits. It might be good idea, during your evaluation, to ask how much opportunity there is to modify and customize these statements.
I have seen the companies I worked with hand these statements out before open enrollment, with annual reviews, or whenever employees ask about benefit details. Benefit statements are an additional item of a long list of benefits of an HRIS system or HR Management System software package that can benefit your entire organization.
About the Author
Clay Scroggin worked in the Human Resource and Payroll Software Industry for more than fifteen years. During that time Clay and those who have worked for him, sold and implemented for hundreds of HR professionals with their HR software needs. In 2007, Clay began work on CompareHRIS.com, a site dedicated to assisting HR professionals with their search, selection, implementation and use of HR systems. The site contains several tools to assist HR professionals with their HR software research including: a HRIS and HRMS Software Selection Tool and a HR software technology forum.
Be sure to download our Detailed Free HRIS Buyers Guide which provides a detailed ten step approach to selecting HR Software.