AI has emerged as a potentially revolutionary force in the world of employee benefits: giving companies the chance to more easily manage and customize their benefits and total rewards.
So, how can you and your team use AI to enhance benefits administration, deliver more personalized offerings, and forecast oncoming trends?
The Role of AI in HR Practices
50% of CEOs report that they’ve already begun integrating AI into their company's day-to-day practices.
While this statistic may worry some, AI is not here to replace employees – rather, it will allow people to focus on strategic goals rather than daily, time-consuming administration. AI provides HR teams with the ability to automate certain tasks and harness data in the decision-making process. For example, chatbots can provide unique, human-feeling 24/7 support, and AI platforms streamline recruitment processes by analyzing candidate data.
According to Roy Norman, Senior Key Account Manager at Benify, "AI is a very exciting element to the world of HR, revolutionizing HR through improved data analysis and efficiency."
As more HR leaders and CEOs recognize AI's potential to boost efficiency, reduce costs, and improve productivity, it’s important to understand the forms in which AI implementation can improve your organization.
Speed Up and Streamline Your Processes
Already, 43% of HR leaders are using AI to streamline internal processes and reduce time-consuming, administrative tasks. For example, chatbots can help employees select benefits, handle routine inquiries, and provide instant support. Similarly, with an AI-powered benefits platform, employers can quickly develop and implement new benefits tailored to the evolving needs of their workforce.
67% of employers who have utilized AI processes within their HR teams reported cost and resource savings, including the most precious resource for many teams: time. By automating routine tasks, AI allows HR professionals to spend more time developing and refining benefits strategies that align with the company's goals and employee needs.
Better Benefits Analysis and Targeting
AI tools are uniquely suited to analyzing and improving your organization’s benefits and total rewards offerings by understanding what is best suited for each individual employee.
For example, if an employee gets married or has a baby, an AI-powered benefits software can remind them to update their insurance policy to include their spouse or child.
Additionally, AI allows employers to track which benefits are most popular in real time and identify gaps in their offers so that improvements can be made to boost engagement and usage.
This level of personalization not only ensures that employees take full advantage of their benefits but also can improve a workforce's overall satisfaction and engagement with the benefits program. 79% of companies who used AI to improve efficiency and decision-making also saw positive changes in their company culture. Not to mention the effect it can have on your organizational performance: highly automated companies are six times more likely to achieve revenue growth compared to companies with low automation.
The Predictive Power of AI
76% of HR leaders view integrating AI as necessary to stay competitive in the future. Using AI as a predictive tool to forecast healthcare costs, usage rates, and employee preferences, organizations can make informed, future-proof decisions about their benefits and total rewards offerings. This allows employers to foresee employee trends, proactively adjust benefits programs, and negotiate better rates.
One of the most significant benefits of AI in administration is its ability to predict employees needs. For example, AI can analyze historical data to forecast future benefit requirements, helping employers to design more effective and attractive benefits packages. This proactive approach ensures that benefits offerings remain competitive and aligned with employee expectations.
Conclusion: Embracing the Future with AI
AI is not just a trend; it's a powerful tool that will redefine the landscape of employee benefits. Up to 69 percent of AI leaders predict a steady release of new AI tools and products, which will continue to promote organizational innovation. As AI evolves, its role in benefits personalization will grow as well - enabling employers to create more efficient, personalized benefits programs that support both employee well-being and the organization's overall success.
When it comes to its use among benefits and total rewards offerings, the results of AI are clear: cost and resource savings, better targeted and personalized benefits, and a more engaged, satisfied workforce.
So, the only question left is: are you ready to start using AI to create a more effective, personalized benefits experience?
Get in touch today to speak with an expert and kickstart your benefits journey with AI and Benify.
