73% of Employees Want More Education on Company Benefits; Employers’ HR Administrative Burdens Are Getting in the Way

More Than One-Fourth of HR Teams Spend Half Their Week on Administrative Tasks, According to Payroll Integrations’ 2024 State of Employee Financial Wellness Report

Payroll Integrations, the technology company that’s reimagining how employers support employees’ financial well-being through benefit automation, has released the second part of findings from its 2024 State of Employee Financial Wellness Report. The inaugural report reveals that human resources (HR) teams are spending a disproportionate amount of time on administration. HR managers spend 12 hours on average, or more than one-fourth of their work week, on payroll and benefit-related administrative tasks, with 27% of them saying they spend 20 hours or more. This overload of administrative work is hindering HR teams from focusing on more strategic work, like educating employees on company benefits–which 73% of employees say they need more of.

Payroll Integrations’ 2024 State of Employee Financial Wellness Report explores how employers’ HR priorities play a role in employees’ benefit education and engagement. The new research shines a light on how educated employees feel about their company’s benefits, and their participation and prioritization of benefits based on their education of them. The report also reveals generational differences in benefit education and participation.

“Many HR teams are dependent on the same manual tasks and processes that they’ve been using for decades–which means hours of unnecessary administrative work to onboard employees, manage payroll and benefits, ensure adherence to regulations and more,” said Doug Sabella, CEO and Co-founder, Payroll Integrations. “This repetitive, time-consuming work not only puts a strain on HR teams, but impacts employees. There’s little time left for HR teams to spend on higher-level, more strategic tasks like educating employees on what benefits they have, why they’re important and how to maximize their value.”

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The inaugural report is based on research conducted by market research firm Dynata, on behalf of Payroll Integrations.

Among the findings:

  • Millennials feel the most educated on employee benefits. Thirty-one percent (31%) of Millennials (ages 27-42) say they feel completely educated on company benefits. Other generations all feel very similar in their education: 26% of Gen X + Y workers (ages 43-58) and 25% of Boomers (ages 59+) say they feel completely educated on benefits. Twenty-four percent (24%) of Gen Z workers (ages 18-26) say the same.
  • Employees that feel educated on company benefits are more likely to participate in them. This is true across every single benefit, some with more contrast than others. The biggest jump in participation between employees that feel educated on benefits and those that don’t are with Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), financial education and planning, lifestyle compensation and retirement. Employees that feel educated on their benefits are three times more likely to opt in for HSAs and FSAs (44%) and financial education and planning (24%) and five times more likely to participate in lifestyle compensation (15%) than those that don’t feel educated (15%8% and 3%, respectively). Seventy percent (70%) of employees that feel educated on their benefits participate in retirement, compared to 52% of those who don’t feel educated.
  • Gen Z employees participate the least in retirement benefits, but those that do contribute the most of all generations. Only 36% of Gen Z workers are investing in their retirement plan–compared to 71% of Millennials, 74% of Gen X + Y workers and 59% of Boomers. While Gen Z’s low participation in retirement is likely because these workers are early in their career and the least educated on company benefits, those that are investing are contributing more than any other generation. One half (50%) of Gen Z workers contribute 11% or more of their salary to their employer plan, compared to 37% of Millennials, 41% of Gen X + Y workers and 32% of Boomers.
  • It’s taking employers a week or more to correct half of payroll and benefit mistakes. Because many HR teams are still dependent on manual payroll and benefit processes, they’re more prone to mistakes–and they’re taking longer to fix. Fifty percent (50%) of employees say when they have experienced a payroll or benefits mistake it’s taken over a week to correct. HR teams are taking steps to avoid these mistakes, however, with technology: 79% of teams say using technology in their processes helps to minimize errors from manual data input.

Payroll Integrations’ 2024 State of Employee Financial Wellness Report is based on responses from 250 full-time employees and HR leaders between the ages of 18 and 65.

Payroll Integrations is the technology company that’s reimagining how employers support employees’ financial well-being through benefit automation. Their integration platform is used by more than 5,000 businesses to connect payroll with retirement, HSA and other employer-sponsored benefit plans for over one million employees. Payroll providers including ADP, Paychex, Quickbooks Online and others use Payroll Integrations to seamlessly connect with 401k benefit providers such as Empower, Transamerica, Principal, VOYA and John Hancock. Payroll Integrations is backed by Arthur Ventures and headquartered in San Diego.

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Administrative workbenefit automationbenefit educationEmployeesEmployersfinancial well-being.HRHR Teamshuman resourcespayroll integrationsTECHNOLOGY