Pension management software helps in the administration of pension benefits to members or retired employees within the agreed timeframe. The cost of this software ultimately depends on your needs and organizational design.
There are a variety of vendors all with different prices. To help narrow down your options, you can choose to focus on vendors who cater to specific regions, have a diverse range of features, and offer post-purchase support. At Systech Africa we have bundled all these three into a neat package that lets you scale up based on your needs.
In this article, we take a look at some of the factors that influence the cost of pension management software.
Factors that Influence the Price of your Pension Software
A pension administration system has the potential to be one of the most significant investments an organization makes for its pension scheme. Your choice of software ultimately depends on your goals.
Here are 5 factors that determine the price of this piece of software:
1. Scope of Functionality
There are two main questions to ask yourself:
- To what extent do I want my pension fund to be managed by pension software?
- What non-negotiable features should the software have?
Conduct a needs-analysis to determine your fund’s needs and your budget.
2. Data Conversion
This is a process that involves the translation of data from one format to another while maintaining its viability and quality. Pension funds hold a lot of data on the members involved which is used to determine benefits owed or to predict the amount that will be available at a given time in the future. The more data you have stored, the higher the software cost. This also holds true if you prefer having a custom interface for your organization
3. Human Resources
This is more of an indirect cost. The addition of a new piece of software comes with the need to train your staff on how to use it. Depending on the type of software that you settle on, the training required may either be extensive or simple. This effort to train your staff and service providers affects the cost of pension management software.
4. Organizational Redesign
The introduction of a new system in your organization may be met with resistance from employees who may feel as though their jobs are at stake. This results in the need to plan early for adaptation of the new system by redesigning your organization in a way that prevents conflict from occurring. This process requires additional training and support which is an added cost.
5. Maintenance and Support
Similar to other pieces of technology, pension management software will require maintenance and support from IT experts. The amount of support required generally depends on your internal capabilities. Organizations with an IT department may require less support compared to those without one. Increased levels of support result in additional costs whether you seek this from your vendor or choose to hire your own members of staff.
Pension management software is a long-term investment that will help your organization efficiently manage its pension scheme. Aside from the clear factors that affect the price, you should be keen on identifying any hidden costs to your organization, as these also determine the total cost of pension management software.