Although most of us haven't traveled recently, join us for a quick trip to the airport.
Imagine for a moment that you're on your way to a tropical destination, and the only thing that separates you from your vacation is the baggage line. There's just one problem - none of the x-ray machines are working, which means that every suitcase needs to be examined manually by hand. The line keeps growing and the travelers are starting to panic about missing their flights. Those inspecting the baggage are doing so faster - leaving open the possibility of something being missed.
The airport x-ray machines are not something we think about often, but just imagine what travel would be like without them.
The above is a great analogy of what it's like for those reviewing benefits statements each month. With growing benefits portfolios and more bills to go through, the manual benefits reconciliation process is time-consuming, error-prone, and may evoke the same feelings of frustration as waiting on the baggage line.
Recently, one of our clients shared that prior to integrating EverythingBenefits' automated Benefits Reconciliation solution, she had to review over 71 pages of benefits invoices each month (for just one of the carriers!). Tiffany Haskins, our client at Alexander Youth Network, shared that "Prior to EverythingBenefits, the benefits reconciliation process was inconsistent and it didn’t happen on a monthly basis, so a lot of money got mishandled. To check all of the invoices manually was nearly impossible. There were a lot of people on the invoice that shouldn’t be there, and people that should be, were not.”
With manual benefits reconciliation:
- HR pros spend countless of hours on non-productive work. As an example, our client spent one week out of each month just reconciling benefits.
- With a 12-15% industry error-rate in benefits invoices, this manual process leads to a high chance of missing overpayments, underpayments, and under-deductions, which may drive up unnecessary premium costs.
- It's harder to catch errors if, for example, an eligible employee is not receiving their benefits; or if a terminated employee is still on the roster.
- With manual reconciliation it's hard to look back historically, at trends, or to identify when an error occurred.
- Manual reconciliation contributes to increased liability, penalties, and compliance risks.
While it's not always easy for HR pros to get a budget allocated for tech solutions which are "often seen as a luxury," making sure your employees are covered is worth the investment. And like the airport x-ray machines, a few seconds is all you need to uncover hidden issues in your billing.