Digital Transformation: The Case for Benefits

Last Updated: December 16, 2021

Organizations globally are adopting digital transformation initiatives in order to remain competitive. HR and rewards departments are no exception as a digital-first approach offers strategic value across HR functions.

Our digital-first era continues to impact the way we live, play and work. Every department across the majority of organizations has undergone a massive digital transformation, with HR and rewards being no exception. Agile organizations who want to focus less on admin-heavy tasks and more on delivering real strategic value to the business have adopted lean HR models, often through an HR Shared Service (HRSS) model, underpinned by flexible, global technology and comprehensive data analytics to continuously improve and refine their approach.

Below I have outlined how digitized benefits can have a positive impact on the employee experience as well as the employer, leading to the improved top and bottom line results:

A digital-first approach has a massive impact on company culture

As new generations with different expectations continue to enter the workforce, company culture has become a vital differentiator for HR to leverage to attract and retain top talent. These generations are digital natives. As the guardians of culture, and the first department employees usually interact with, HR has a responsibility to communicate in an engaging, technology-enabled way. When it comes to benefits, not only does technology make it easier for employees to see what they are entitled to, helping them feel supported by (and connected to) their organization wherever they are (and at any life stage), it also helps free up time for reward and benefits teams themselves. By automating many of the administration tasks that teams regularly spend the majority of their time on, technology gives HR professionals room to develop and grow their own experience, with more time to spend on value-add activities, such as benefit communication campaigns or diversity and inclusion initiatives.

The competitive advantage when onboarding talent

From the moment a new employee is hired, their experience through the onboarding process says a lot about your organization. A great onboarding process is necessary not only for new recruits to flourish, but to set the tone for all future interactions. Instead of submitting a variety of forms and waiting extended periods to hear back, an automated system provides a totally trackable and hassle-free selection process. Efficient HR processes manage employees’ expectations about how they’ll be treated by their new organization moving forward. By making it as easy as possible for employees to get set up and making them feel a part of the culture from day one, they are more likely to feel valued and be more productive and loyal as a result.

Offering comprehensive, personalized employee benefits

Our Global Employee Benefits Watch researchOpens a new window found that 84% of employees state that benefits impact loyalty towards their employer and their positivity at work. On top of this, 72% of employees who use technology to access their benefits in one place are satisfied with this approach and are engaged with their benefits and their organization as a result. When it comes to making your employees feel valued and more productive, the need for great technology is a given. But most importantly, it’s how you extract the most value from this technology. By effectively analyzing the data generated by sophisticated benefits technology, HR teams are able to determine which benefits are most valued by their employees. This allows them to create a more tailored and personalized benefits offering that actually meets the needs of their people. This approach helps employees feel more valued and connected to their organization.

Connecting to a broader ecosystem

There has been an explosion in the number of best of breed technologies that are successful in delivering exceptional employee experiences in today’s convoluted HCM technology landscape. With the rise of these technologies, it presents employers with a new headache – how do we make them all work in harmony? There is an incredible amount of value that exists in connecting the best technologies to deliver the best employee experience. Our 2019 Technology Landscape survey tells us that 88% organizations that use a best of breed integrated technology ecosystem approach achieve or exceed their employee engagement score target, compared to on 55% who take a decentralized, local approach.

To ensure the most strategic value is gained from benefits, offerings should be at the forefront of HR teams’ digital transformation strategy. The right technology not only transforms processes, saving valuable time and money, but helps to create an inclusive culture, and the perception of value in benefits offerings from day one. As such, benefits has such a significant impact on employees that HR cannot afford to leave it behind.

Also ReadBest Practices for Switching from Annual Performance Reviews to More Frequent FeedbackOpens a new window

Matt Jackson
Matt Jackson is the Head of North America for Unmind. He is an expert in the global health and benefits technology space, having lived and worked in London, Hong Kong, and New York, advising multinational organizations for over 13 years. This has helped to provide him with a broad perspective of the challenges that face multinational organizations when it comes to managing their people across borders, specifically in the area of health and benefits.
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