Employee Benefits Management Software vs Total Rewards Management Software
When it comes to human resource management (HRM), software solutions have made life significantly easier for the HR and management departments. One of the essential features of HRM software includes benefits management software and total rewards management software. Both have different functionalities and benefits for the company and its employees. In this blog post, we will dive deep into a factual and unbiased comparison between Employee Benefits Management Software versus Total Rewards Management Software.
Employee Benefits Management Software
Employee benefits management software helps organizations manage and handle their employee benefits programs. It can include health insurance, retirement plans, life insurance, and disability insurance, etc.
The software offers a self-service portal to employees where they can enroll and manage their benefits by themselves. Employers can customize, review, and approve employee's benefits and can keep track of requests and claims made. Moreover, it helps HR teams to calculate deductions and other payroll-related issues.
According to a survey conducted by the Society for Human Resource Management, 92% of organizations use employee benefits software to manage benefits programs, and 62% of staff use self-service software to manage their benefits.
Total Rewards Management Software
Total rewards management software is an advanced version of employee benefits management software. It includes more than benefits programs, including recognition, compensation, and career opportunities. Full-on HR suite, we'd say.
Total rewards management software goes above and beyond to offer a personalized work experience to employees. It evaluates employee's contributions, skills, and even their work history to provide tailored rewards, which in turn helps to boost employee morale and increase retention.
According to the Willis Towers Watson's Total Rewards Survey, 33% of companies use a total rewards management software platform, and 69% of these organizations confirmed improved employee engagement and loyalty.
Comparision
Both software solutions offer similar functionalities, but the main difference is the expanded scope, which makes Total Rewards Management Software more complex and more expensive than Benefits Management Software.
Benefits management software is cost-effective and straightforward, while total rewards management software is efficient for large organizations or ones that are willing to invest in HR tools. Rewards software tends to be more vendor-driven and tailored to the organization's specific needs.
Conclusion
In conclusion, when deciding between the two HRM software solutions, you must assess your organization's budget, size, and goals. Employee Benefits Management Software is a good choice to automate your benefits programs and save time and effort. At the same time, Total Rewards Management Software is essential for large organizations looking to provide a personalized work experience to their employees.
We hope that this blog post has given you adequate information to choose between the two software solutions to meet your organization's HR needs.
References
- Society for Human Resource Management, 2021 Employee Benefits
- Willis Towers Watson, Total Rewards Survey