22/04/2026

7 mins

While not glamorous, employee benefits administration is crucial to efficient business operations and effective employee engagement. It sits right at the crossroads of payroll, compliance and the employee experience. When something goes wrong, the impact is felt quickly and across the whole business.

Our 2026 Employee Benefits Benchmarking Report¹ found over a quarter of organisations still rely on spreadsheets or manual paperwork to manage their benefits. And nearly half have experienced at least one data error in the past year due to manual processes, leaving themselves wide open to risk.

Here’s why, when it comes to sensitive employee data and payroll-linked benefits, “mostly accurate” isn’t good enough.

ABOUT OUR RESEARCH 📚
Our 2026 Employee Benefits Benchmarking Report is based on a survey of 626 HR and finance professionals conducted in February 2026 via online survey. The sample includes UK employers of all sizes across a number of different sectors. Findings are indicative of trends among the survey population and may not be representative of all UK employers. Where year-on-year comparisons are made, these reflect changes in the survey population between years, which may differ in composition.

Benefits Management in 2026: Too Complex To Manage Manually

Despite most employers managing between three and seven benefit providers (each with their own processes, renewal timelines and data requirements), manual processes remain widespread in employee benefits administration. Despite this complexity, 25.7% of employers still rely on spreadsheets or paperwork.Another 26.2% use a mix of all the methods – are they creating more work by working across multiple platforms?

Manual processes don’t just create inconvenience, they introduce risk. Static documents and physical papers pave the way for errors and oversights, and disconnected systems make it harder to track joiners, leavers, salary changes and life events accurately.

That risk is already materialising. 46.6% of employers report at least one error in the past year due to manual processes, with 6.7% experiencing multiple issues.

And while 95.9% of employers express confidence that changes are processed accurately, error statistics suggest that confidence may not always reflect reality.

Tracking joiners, leavers, salary changes and life events across multiple systems creates operational friction. While 95.9% of employers express confidence that changes are processed accurately, error statistics suggest that confidence may not always reflect reality.

The Hidden Risk of “Good Enough” Administration

Spreadsheets feel familiar. They’re inexpensive and offer a form of control. But they also create risk. Errors in benefits administration can lead to incorrect premiums, delayed claims or payroll discrepancies. Even isolated mistakes can erode employee trust, and when you multiply that across multiple providers – complexity escalates quickly.

Well-managed benefits programmes can save HR teams significant time, and contribute to higher employee satisfaction. When employees feel that their benefits meet their needs, they’re more likely to stick around, reducing recruitment and training costs.

A well-managed employee benefits program not only enhances employee wellbeing but also makes sound business sense. It attracts top talent and nurtures employee loyalty by creating a workplace culture where people feel valued and supported.

The Operational Cost of Time, Friction and Rework

Manual processes aren’t just risky they are time consuming. 43.3% of organisations spend between 6–20 hours per month managing benefits administration. For HR teams already balancing recruitment, compliance and employee engagement, that’s a significant and recurring drain.

This time isn’t just spent on data entry, it gets absorbed by:

Reconciling discrepancies
Chasing providers
Correcting errors
Managing multiple systems and renewal cycles.

What looks like a low-cost approach often becomes a high-effort one.

Automation addresses both accuracy and efficiency. Centralised employee benefits platforms provide a single source of truth, task reminders and provider notifications. Updates made once flow through connected systems.

Governance and Audit Trails

Staying compliant with ever-changing laws and regulations can be complex, and it adds additional work and stress for benefits administrators. Failing to comply can lead to costly legal issues and damage your reputation.

Manual tracking also makes oversight difficult. Version control issues, duplicated spreadsheets and email chains limit visibility. For organisations already conducting annual benefits reviews (80.2% according to the report), data improves decision-making, but poor data can limit the value of those conclusions. Without reliable insight, it’s harder to understand usage, control costs, or optimise your package.

Digital systems create audit trails, which are particularly valuable during renewals or regulatory reviews. They also support structured reporting, enabling employers to assess utilisation and cost trends more effectively.

Employee Queries

Administration doesn’t just affect HR, it shapes how employees experience their benefits. When information is unclear or difficult to access, enrolment becomes chaotic and HR teams are pulled into answering routine queries. Over time, this creates friction on both sides.

Separate employee research found only 12% of UK workers truly satisfied with their benefits², making visibility and understanding key barriers to engagement.

Our employee benefits platform shows employees their rewards in a tangible format. They’re just a click away from their pension or being able to access medical care. It’s been revolutionary for our staff to take charge of their employee benefits themselves.

Kelly Games
HR Manager at Dryrobe

Embracing Technology for Benefits Management

At its core, it’s a control issue. The modern workplace demands a more efficient approach to benefits administration. And this applies to your benefits administration.

One of the simplest things you can do to take the pain out of the admin is to use a purpose-built employee benefits software. The right technology can simplify the process, reduce errors, and enhance the overall employee experience – not to mention improving your efficiency and compliance.

Automation reduces the need for repetitive tasks, while features like real-time updates, audit trails and automated reminders improve both accuracy and accountability. For HR teams, that means less time spent managing data and more time focused on strategy. For employees, it means clearer, more accessible benefits.

A More Reliable Way To Manage Manage Benefits

A good platform (like My.Drewberry) will be a user-friendly, one-stop solution for employees to view, choose, and manage their benefits, making the process more convenient and efficient for both employees and HR teams.

A good platform will remove friction from the process. Solutions like My.Drewberry allow employers to manage enrolment, updates and reporting in one place, while giving employees a clear view of their Total Reward. This makes processes more convenient and efficient for both employees and HR teams.

As an employee, it’s far too easy to forget the tangible company perks you have access to. Which is why our employee benefits platform is so cool – it makes it super easy to view your benefits at a glance and actually engage with them. I sign in and all my rewards are there just waiting to be used, rather than being forgotten at the bottom of my inbox.

Colette Hagan-Young
Employee and platform user

Benefits data is personal. Inaccuracies can affect access to medical cover, insurance claims or pension contributions. Reducing administrative risk protects not only operational efficiency but also employee confidence.

Manual administration might feel manageable, but the evidence suggests it introduces more risk than it removes. The shift to digital isn’t just about efficiency. It’s about control, accuracy and confidence, for both employers and employees. Technology can reduce administrative risk, which can protect not only operational efficiency but also employee confidence.

While platforms involve upfront cost, many employers find that time savings and reduced error correction offset the investment. They allow you to easily update and amend employee selections and eligibility, stay on top of tasks with automated notifications and provide employees with a holistic view of their rewards package.

Make Managing Your Employee Benefits a Breeze

With features like self-service for employees, automated workflows, integrated reporting, and benefits intelligence, My.Drewberry can help you retain top talent and boost employee morale. Our fully automated system effortlessly syncs with your HRIS to handle enrolment, reporting, and all those in-between tasks.

Whether you’re adding, updating, or removing staff members, you’ll only need to change it once, and My.Drewberry will handle the rest. Call 02074425880 or submit an enquiry to see how it could help your business.

Why Speak to Us?

Employee benefits can be a headache. But our specialists do this day-in, day-out, offering first class service when you need it most. Here’s why you should talk to us:

Award-winning independent employee benefits consultants, working with leading UK insurers and benefit providers
Assigned specialist on hand to help – every step of the way
4119 and growing independent client reviews rating us at 4.92 / 5
Authorised and regulated by the Financial Conduct Authority. Find us on the financial services register
Claims support when you need it most.