HRMS Benefits Management: Reporting 101
In addition to salary, benefits are often a large part of the budget for employee related costs. It is estimated that benefits account for approximately one third of the total cost of an employee. Due to this high cost proportion, benefits should be an essential area for management reporting. As a part of report design within an HRMS benefits management framework, here are two areas to consider as a starting point.
Financial Reporting - Bean Counting and Costs
From a pure cost perspective, how much does a particular benefit plan cost, per employee? What is the best mix of plans to offer, where do the advantages outweigh the costs? HRMS benefits reporting here would look at the options chosen and how much these cost the company overall, from the employer’s perspective.
Financial reporting can also cover the areas of benefits with tax implications. For example, if your employees are contributing to a 401k, they may be lowering their personal tax rates, there are also company tax implications in offering these plans. Traditional pensions carry a greater risk for the company than 401k plans, so accurate reporting on the various pension and savings plans is essential.
HR Reporting – the Warm and Fuzzy Side
Benefits can be seen as a recruitment and retention tool. In order for your company to stay competitive, the employees’ perception of your company’s benefits matters here. Reports in this area would compare uptake for various options to determine popularity.
Detailed reporting should be done based on employees who are leaving the company; would different plan options or costs have made a difference to the employee? Alternately, are there any trends among the exiting employees, do they share certain benefit configurations, or other identifying pieces of data? For example, if you notice that a large proportion of employees with family health coverage are leaving in greater numbers than expected, reporting can help you to determine if this is related to the benefit offering itself, or something else such as working hours is causing those with families to leave.
Benefits management reporting is an essential area that needs to be considered as a part of your HRMS analytics landscape. Reporting on benefits data can offer insights into this costly budget item, as well as provide a greater understanding of your employee population.
Featured white papers
Working with HRMS consultants: five steps to success
Find and onboard the right HRMS consultant for your project with this guideDownload
HRMS implementation: 9 steps to success
Get your detailed guide to planning and executing an HRMS implementationDownload
HRMS Software Pricing Guide
Get your comprehensive guide to the cost of HRMS software.Download
Top HRMS requirements gathering strategies
The process of gathering system requirements for a new HRMS has to include current process review...
Your plan for more successful HRMS migrations
Guest blog from Visier discussing how people analytics can aid HRMS migration
The most common reasons for HRMS implementation failure
Top reasons why HRMS projects fail during implementation