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Benefits administration: Why now is the right time to rethink your strategy

Why should you rethink your Benefits administration strategy
  • Cherie Story , Director of Global Strategic Partnerships
  • July 7, 2025

Benefits administration remains one of the most fragmented and frustrating parts of the HR tech stack for many employers. In fact, companies outsource an average of 40% of their benefits functions.  Even companies that have gone all-in on Workday for core functions like HCM, payroll and finance often find themselves relying on outdated or siloed third-party platforms to manage benefits.

That disconnect can slow operations, create data inconsistencies and add unnecessary costs. Others may be using Workday for benefits but remain bogged down by the complexity of managing the software in-house.

There’s a better way forward. The return on investment for centralizing benefits administration within Workday — and bringing in the right expertise to run this specialization — is becoming harder to ignore. Companies that rethink how they manage benefits can cut down on errors, ease the burden on internal teams and improve the employee experience.

Clearing up common misconceptions for benefits administration

When it comes to Workday and benefits, objections persist but are outdated. Let’s debunk these myths.

“Workday isn’t built for benefits.”

This perception lingers from the early days of the platform but no longer holds water. Today, many large organizations successfully administer complex, multi-state and multi-plan benefits programs through Workday. While Workday doesn’t actively promote its benefits capabilities (often bundling them into broader platform deals), they are robust, proven and ready for enterprise-scale deployment.

“The user experience is limited.”

It’s true that traditional decision-support tools aren’t native to Workday, but that’s exactly why Strada’s recent partnership with Nayya is such a game-changer. Nayya’s AI-powered platform integrates directly with Workday, offering personalized benefits guidance to employees based on their health needs, family size and coverage preferences. 

“Switching platforms is too disruptive.”

If your organization is already using Workday for core functions such as HCM or payroll, this is an activation versus a platform switch. By extending the capabilities of a system your employees already know, you gain seamless integration without the burden of migrating to a new vendor or learning an entirely different tool.

Why rethink benefits administration now?

While cost matters, the real opportunity in rethinking benefits administration lies in simplifying processes, reducing errors and setting your team up for long-term success.

Here’s what organizations are unlocking when they activate Workday Benefits and bring in expert support like Strada to manage it.

1. Real-time data = Real savings

When HR, payroll and benefits systems live separately, data lags and inconsistencies are almost guaranteed. This often results in:

  • Incorrect deductions
  • Delayed or missed coverage changes
  • Hours of manual cleanup for HR and payroll teams

With everything in Workday, the data lives in real-time and is synchronized. A benefits election updates instantly. There is no room for human error-prone file transfers or third-party integrations.

2. Lower total cost of ownership

The financial case is strong. In a recent value assessment, a Strada client with 10,000 employees saved nearly $1 million by activating Workday Benefits instead of relying on a traditional third-party ben admin platform. That’s because:

  • Duplicative software fees and costly integrations are avoided
  • Workday already includes the benefits module in most platform subscriptions
  • Open enrollment and configuration work is significantly less expensive on Workday’s modern architecture

3. Familiar, employee-friendly interface

Employees are already using Workday for their paychecks, time-off requests and HR updates. Keeping benefits within the same system means fewer forgotten logins, less confusion and a more intuitive experience. It also encourages year-round interaction with benefits information instead of just during open enrollment.

4. Better benefits fit for every employee

With Nayya integrated into Workday, employees receive smart, tailored recommendations during open enrollment or life events. Someone with a chronic condition may be guided toward a more comprehensive PPO plan, while a healthy single employee may be nudged toward a cost-effective HDHP with HSA. This leads to better coverage choices, fewer questions and higher employee satisfaction.

5. More control and flexibility

With traditional outsourced benefits administration, the vendor owns the tech and the timeline. Configuration changes, integrations and even simple updates often require costly change orders and long lead times.

By contrast, organizations using Workday retain ownership of their benefits tech. They can choose to manage it in-house or outsource it to a provider like Strada. Either way, they stay in control.

Why the Right Expertise Matters for benefits administration

Activating Workday Benefits is only step one. To run it effectively and ensure it stays compliant, you need the right combination of administrative and technical expertise.

Strada’s team is purpose-built for this space. Every member of our benefits administration group brings a foundation in employee benefits administration and operations, layered with deep Workday expertise. We understand how your benefits work in the real world, from plan design and eligibility rules to audit prep and carrier integrations.

That depth of knowledge is hard to replicate in-house. Workday-certified talent is in high demand, and once someone adds it to their resume, they’re often quickly poached. Retaining this skill set requires more than one or two specialists. Strada gives you access to more than 1,500 Workday-certified professionals with the experience to keep your platform running smoothly, your data audit-ready and your processes compliant.

Outsourcing to a team like Strada also frees up your internal HR and IT teams to focus on more strategic priorities:

  • Personalizing benefits offerings
  • Strengthening employee engagement
  • Aligning your benefits program with broader workforce and business goals

Strada handles the day-to-day so that your team can focus on the big picture.

And perhaps most importantly, if you’re already invested in Workday, you already own the technology you need. Managing benefits outside of Workday means missing out on the integration, efficiency and control the platform is built to deliver. By activating the module you already have and partnering with experts who live and breathe these features, you gain accuracy, visibility and savings without the disruption of switching to something new.

It’s not a leap. It’s just a smart use of what you already have.

  • Cherie Story , Director of Global Strategic Partnerships