New Challenges Facing Benefits Administration | Netchex
May 17, 2017

Benefits Administration is notorious for being one of the most arduous responsibilities associated with human capital management. Second only to payroll as the most frequently outsourced HR service, benefits administration has become increasingly more challenging for HR as of late.

The uncertainties of healthcare reform, and rigorous compliance are already taxing on HR operations. However, new hurdles are emerging from the evolution of the industry itself and placing even more pressure on HR staff resources.


As more companies hire geographically dispersed employees they rely on mobile time clock technology to track hours, overtime, and schedules. As telecommuters work sporadic schedules that blur the line between being a part-time employee versus a full-time, it makes it difficult to determine benefits eligibility. The accuracy of timekeeping analytics is necessary for healthcare compliance as well. As telecommuters are entrusted with punching in and out independently online, inaccuracies can occur- resulting in missing or incorrect recording of hours. Plus, HMOs and insurance providers tend to be localized and benefits that cross state lines can be costly for both the company and the employee. Identifying policies that appeal to dispersed workers has become a challenge for companies looking to offer competitive compensation to telecommuters.

Multiple Demographics

Aside from those working from a home office, there are varying demographics in today’s workforce on-site. From the single employee looking for a modest health plan, to those needing full family coverage, delegating a policy that covers everyone is simply impossible. Multiple insurance carriers may be necessary, or a variety of options within a selected provider. With employees selecting their own level of coverage, management of multiple insurance offerings becomes much more complex for HR staff when using manual processes or systems with limited capabilities. The need for streamlined administration is greater than ever. Which brings us to the technology.

System Integration

Effective HCM and benefits compliance relies on reporting, analytics, and precise data. Errors in processing result in time consuming bottlenecks, IRS penalties, and a strain on department budgets. And, while having a dedicated benefits platform is necessary to oversee multiple insurance options, a fully integrated HR system is the only way to prevent data loss. Passing information automatically from payroll, timekeeping, and benefits databases will provide precise population across each system. It saves time and resources by minimizing the duplication of data and risking human error in the process. If your benefits management system cannot integrate with other HR functions, it creates more work for the administrator.

NetBenefits and NetBroker services have become indispensable to companies managing complex benefits programs. NetBenefits, Netchex own insurance management system, provides full outsourcing administration and seamless integration. Our NetBroker program, gives TPAs the opportunity to offer the data, analytics, and complete suite of HCM solutions companies needs to reduce HR workload and focus on mission-critical tasks.

As additional obstacles, such as chronic and inherent conditions, begin to complicate benefits administration further, Netchex is committed to providing the HCM services and business intelligence you need to modernize HR functions and concentrate on core-business objectives.

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