THE BOTTOM LINE
Calculating the Value of Benefits Administration
Benefits administration remains a growing area of activity for corporations. In examining this expanding market, Nucleus assessed its recent human capital management (HCM) case studies and followed-up with users to determine the benefits delivered. Nucleus found that by using a benefits administration system, companies can save on average $1,060 per employee per year. Nucleus also found that 80 percent of companies surveyed realized savings of $960-$1360 per employee per year. Eighty-five (85) percent of the savings came from reduced healthcare benefits costs. These costs are reduced by driving high employee participation in health insurance plans that were most cost-effective, such as HDHPs. Additional savings came from increased productivity for benefits administration staff, including during onboarding and open-enrollment, as well as productivity from employee self-service.