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HCM & Benefit Administration Platforms

HCM

HCMs are Human Capital Management Systems primarily focused on three main components: workforce acquisition, workforce management and workforce optimization.

HCM software is also sometimes referred to as HRIS (Human Resource Information Systems) and HRMS (Human Resource Management Systems), and other terms, to express the notion of a database to manage employee information.

HCMs are utilized by employer groups within their Human Resources department and practices to ensure employee data is captured, stored, and updated either manually by an HR professional, manually with an employee self-service tool, and sometimes with some automation mechanisms.

The core components include payroll, time and attendance, and benefits management. But compliance and onboarding and other functions are available. HCMs, in essence, replace old-fashioned file cabinets and hard copies of employee files with cloud-based or on-premises databases of employee personnel files—reducing or even eliminating paper copies.

Benefit Administration Platforms

Benefits Administration (BenAdmin) is the process of creating, managing, and updating an organization’s employee benefits program.

Benefits administration typically falls under the responsibility of Human Resources in conjunction with the company’s Benefits Broker and involves managing health insurance, retirement accounts, vacations, paid time off and parental or family leave.

BenAdmin Platforms are systems of records that allow Insurance Brokers who serve employer groups to capture and convey (sometimes manually) employer and employee data, relative to the benefits offered, to the carriers providing the benefits. This system of record may or may not have any automated or seamless connectivity to a carrier.

HCM and BenAdmin systems sometimes are integrated with each other so Employers can enter employee data one time, employees can complete enrollment tasks regarding benefit offerings in their own HR system, and brokers can be sure to capture the choices made by employees and convey them to the carriers.

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