How to justify investing in Benefits Technology 

43% of overall HR budgets are going towards Technology, according to the results of the 2024 Mercer Marsh Benefits Technology Pulse Survey.  

Without investing in a tool to properly engage your employees with their benefits, compensation and Employee Value Proposition, you may find yourself falling behind in the competition for talent. 

But building a business case for this investment can be tough, despite the fact that a globally consistent employee experience is employers’ highest priority. Upfront costs can pose a barrier to C-suite sign-off, even if the necessity of these tools is broadly understood. 

So how can it be justified? We’ve outlined below how savings generated by benefits technology can cover implementation costs. 

1. Boosting employee engagement and access to salary sacrifice benefits also boosts employer NI savings. Average annual NI savings in the UK can amount up to £650k. 
   
2. Automating benefits enrolment and reporting processes can reduce administration teams’ time by 25-50%, allowing teams to focus on transformational and strategic tasks.
   
3. Improved employee engagement can help reduce employee churn by up to 15%. Access to market-leading benefits technology and the ability to personalise selections helps retain talent and prevents costly recruitment costs. 
   
4. Automating benefits administration means employers are 3x more likely to see a reduction in administration errors and costly data breaches.  
   
5. Without Benefits Technology, reporting of company leavers and changes to benefit levels is notoriously prone to errors. Premium leakage for costly medical premiums is at an all-time high, but could be eliminated through automated provider reporting. 

Benefits Technology not only ensures greater employee engagement, appreciation and boosts the likelihood of employee retention, it also provides some very tangible return on investment when it comes to streamlining your processes. But beware – investing in the ‘right’ benefits technology is key. Check what’s ‘under the hood’ for any benefit technology providers you may speak to. Without true automation, errors and additional administration costs will cost you more time and effort in the long run. 

Take a look here to see how implementing Benefits Technology can help you, today.