The Value of Automating Benefits Administration

With the cost of healthcare still on the rise and the decisions that await around healthcare reform, it only makes sense to take a step back and look at all aspects of healthcare expense, not just the insurance itself. Employers have attempted to control medical rate increases by making benefits cuts or outright elimination of benefits, increasing cost-sharing to employees, and adopting consumer-driven health plans with HSA’s or HRA’s. There can be inherent dangers in these approaches including decreased employee satisfaction, which can ultimately lead to voluntary turnover of good employees.

I suggest taking a look at the soft costs associated with the administration of the benefit plans as a strategy to mitigate this expense. Depending on the size and complexity of your organization and benefits offerings, up to 25% of your total spend could be tied up in the transactional costs of benefits administration. This warrants considering process improvement or retooling as a means to controlling this cost. Regardless of the size of an organization, deployment of the right technology will dramatically improve open and continuous benefits enrollment by reducing errors, speeding up the enrollment process, and increasing employee education and satisfaction around the health plans offered. Organizations of all sizes report the benefits of automated enrollment to come in the form of: Time Savings, Increased Productivity, Improved Data Integrity, Greater Employee Satisfaction.

An enrollment system will automate manual or redundant, paper-based processes, engage employees with self-service tools, and enable employers to access benefit participation patterns. Several methods for automating the benefits administration function are available to even the small market. I suggest exploring each and discussing options with your benefits consultant or an outside HR Consultant to determine what works best for your organization.

Issues to Consider When Automating Benefits Administration

1. Deployment of Employee Self-Service – The technology application that you choose must have a self-service functionality that is easy to use, includes workflow capabilities, and is accessible via the internet. If you properly train employees on how to use the benefits enrollment portal thoroughly most employees will complete it successfully the first time. Studies also suggest that more than half will do it at home with a spouse, thus making them more productive at work. Data accuracy is also improved when enrollment info is entered at the employee level as opposed to the administrator level. The more participants that have access the better. The use of kiosks should also be considered for those employees who may not have the internet readily available. Expanded reporting and survey capabilities also give added bonuses to employers who successfully deploy ESS.
2. Technology Integration – A stand alone benefits administration portal gets you halfway there but to truly maximize efficiencies, I suggest a fully integrated payroll/HRIS/Benefits application. Payroll data tends to be the most accurate data set in any organization, so it makes sense to build benefits technology off this data to ensure utmost accuracy for employee contact information, eligibility, premium deductions, and termination. Many systems also include interface capability to the insurance carriers. This type of integration allows for ONE point of entry for all payroll, HR, and benefits related information. This created a more efficient, less error prone process. Integration eliminates profit leaks with terminations and eligibility because all employee data is resident in a common place that connects with the carrier.
3. Expense – Who should be responsible for this cost? In many cases there are three different parties involved with the process: the insurance carrier, the insurance broker, and the technology provider. You as the employer are clients of all three. I suggest putting them in touch with each other to see what makes the most financial sense for your organization. Many times brokers will absorb this cost as a value added service. The carrier may be willing to cut you a deal to retain or attract your business. Thirdly, the technology provider may have extensive experience with your carrier and may be willing to reduce this cost because less work has to be done on the front end. At the end of the day, it is worth the financial investment and time up front to create the carrier feeds and maintain connectivity especially if you plan to stay with that provider for several years.

Wellness: Should our company be doing something about it?

Currently, 62% of employers offer some type of wellness plan, whether that is as simple as discounts on gym memberships or as comprehensive as a multi-faceted points-based program. Regardless, an employer must view a wellness program as investment in the employees, not in the health insurance plan itself.

1.  How does an employer decide whether it makes financial sense to implement a wellness program?

Factors such as demographic makeup, company culture, and the overall wellness implementation strategy including structure and design, will determine the ultimate “return on investment.” Employers should expect to pay between $4-$15 per employee per month on a wellness plan Companies with high turnover or lower paid workforces tend to directly benefit the employer the least; however, as more and more companies adopt wellness initiatives, the less that this will hold true.

First, the employer must be willing to adopt a top-down approach to implementing the wellness program and be willing to make a push to change to the company culture with an emphasis on healthy living.  Leaders determine culture.  If caring for yourself and others is part of what the employer values personally, it only makes sense to include wellness as part of company culture as well.

Secondly, an employer must understand the goal of the wellness plan before you can expect to see any results. “Bad” behavior drives risk; risk drives illness and disease; diseases drive healthcare costs. The only way to change the course of this cycle is to change behavior. An employer should not expect to see a dramatic change in the first couple of years. The only real way to measure success is in risk factor reduction.

2.  How does an employer maximize participation in a wellness program?
An employer must begin in the data collection phase of a wellness plan to experience long-term success. It is here where an employer identifies the current risk within the company by examining a multitude of data sets including clinical data obtained through claims or self-reported lifestyle data, health risk assessments (HRA), and biometric data. From here, an employer can determine the most critical areas to impact as the plan is designed.

Employers must then effectively market and communicate the wellness plan to employees AND families when integrating wellness plans. Often, the dependents are the more costly members of the employer’s health plan. Make the communication material as positive and personal as possible. It is vital that support from the executive team is evident in this communication and marketing. Employees follow what is done, not said.

Offering incentives will maximize participation.

Some employers feel that mandating certain requirements to maintain health care eligibility is the most effective way to force the hand in wellness participation. Others feel that offering voluntary incentive based plans is the safer path if you are trying to avoid discrimination liability and hope to boost employee morale as well.

The most effective plans include a variety and combination of incentives that will appeal to a broad employee base.
The most effective incentives are those that are tied to the health plan, such as premium discounts and contribution to flexible spending accounts or health savings accounts associated with high-deductible plans. It is also important that the employee be able to measure their wellness success and milestones. This can be achieved through point based systems as well as effective web tools to evaluate progress.

It is important, however, not to discriminate when implementing certain incentives. To date, the only real measure is placed upon insurance premium reduction. An employer cannot incent  in excess of a 20% cost reduction for participation in the wellness program.

3.  What does the future hold for Wellness programs?

If you understand the fundamentals of what is behind the rising cost of healthcare, one can only speculate that government will begin to highly incent employers via hefty tax credits to enforce employer sponsored wellness plans.

In fact, 16% of gross domestic product is spent within the healthcare sector. This number is rapidly rising and in part is due to the declining health in the US. The only way for this number to stabilize is to change the behavior of the American people at large.

The largest portion, over 60%, of Americans are insured under employer health plans. Similar to other benefits, such as retirement plans, it seems logical that the government will intervene and place the wellness burden in the laps of employers of America to enforce these much needed programs.

Marketing Your Employee Benefits Plan

According to a 2007 study, more than two-thirds of employers feel that their employees don’t fully comprehend the value and costs associated with their insurance benefits. At the same time, two out of five employees say they don’t know which options are most appropriate for them and their needs and would like additional education and assistance with planning their benefits program. Clearly communicating and marketing employment benefits can greatly help both employees and their employers. Such efforts convey a message that the employer is attempting to help employees manage their health and well-being, resulting in positive recruiting efforts and employee retention.
Most employees have a general understanding of the healthcare but are not well versed in specifics such as the cost to the employer. It is shocking when they learn that their employers spend 20% to 40% of the employees’ wages on benefits. Issues such as cost sharing and consumer-driven health plans add to the confusion. While recent studies indicate healthcare premium trends are finally on the decline, employees are still experiencing increased co-pays, deductibles and premium contributions. There are several ways employers can most effectively communicate employment benefits:

1. Open Enrollment is an employer’s opportunity to highlight their benefits program each year. An employer’s Benefits Broker/Consultant can facilitate this process by holding open enrollment meetings, webinars, and developing user-friendly communication pieces highlighting the benefit programs.
2. Highlight benefits in employee newsletters and offer “lunch and learns” to provide constant communication with employees.
3. Develop and maintain a benefits portal within the corporate Intranet or HRIS, providing a resource where employees can access up-to-date information regarding their benefit programs.
4. Implement an online enrollment benefits management system whereby employees can: a) Access their account and view/update their benefits enrollment information. b) Hyperlink to carrier and vendor websites in order to view physicians and claims. c) View list of FAQs to help employees understand how to best utilize their benefits, i.e. how to access a doctor and/or obtain a referral.
5. Provide new hire orientation meetings for all newly eligible employees.
6. Train your Human Resources team to ensure they can clearly communicate the value of the entire benefits package to your employees.
7. Hold a Health Fair every couple of years. A health fair provides a venue for employees to interact directly with the carriers and vendors. It is a non-threatening environment for employees to obtain information about health & wellness, prevention, and additional resources available through their health plans.

Both employees and employers can feel the negative effects of insufficient communication and marketing of employment benefits. Employers can face difficulty with respect to employee recruitment and retention. Employees, in turn may suffer from poor morale if they feel their company undervalues them, contributing to a negative work environment. Conversely, when a company shows it cares about its employees, both parties can greatly benefit from the advantages of open communications and a well-informed, strongly motivated staff. Proper marketing of the benefit plan is critical to communicating the real value to the employees. If done properly, the employer will reap increased overall employee satisfaction.

Training Employees – Why it is More Important than Ever

Companies have found that investment in human capital in the form of training and development yields high returns. The ones that recognize the value of their employees and place a new emphasis on education and training are becoming more competitive, successful, and profitable as a result. According to a study conducted by Knowledge Assessment Management, companies in the top 20 percent of those who spend money on training receive higher returns in the stock market. Is it possible that knowledge is equal to profit?

According to an article in T+D Magazine a knowledgeable workforce may ensure a company’s survival. The article profiles four companies that survived the economic impact of September 11, 2001, and a business climate marked by recession and corporate scandals. These companies—Southwest Airlines, Viacom, Dell, and Guardsmark—all consider employee training an investment in company growth and stability. Rather than cutting back their training budgets during hard times, these companies chose to invest in the development of new skills and knowledge within their workforce. In doing so, these companies showed a commitment to their workers and gave them the educational background necessary to increase productivity and effectiveness in their respective markets. The workers, in turn, supported these companies and ensured their survival through a difficult chapter of American business history.

Experts in this field can work with your leaders to help instill the importance of a motivated and engaged workforce. That is critical to achieve success when the economy improves.

The face of business is changing at an alarming rate. Technology advances, globalization, workplace diversity and the list goes on. And all this in a weakened economy! Every industry sector and each departmental division within a company is confronting the same reality. Which outcome a company and its people will experience is directly focused on their commitment to training and development.

The new paradigm for training requires us to view it as an inseparable part of performance improvement and management. Once viewed in the eyes of management as a nonessential support tool, training and development has become an integral part of business strategy and aligned with business results. Training is a process that involves dynamic interrelationships with the other functions of the organization, especially supervisors, managers and performance management systems.

A number of trends in training and development are occurring as the marketplace changes and companies strive to achieve these levels of performance in a time when corporate dollars are not spent on training. As they watch their budgets shrink, HR and corporate training professionals are looking for cost effective training options that can still get the job done without an expensive price tag.

This economic downturn is actually an excellent time for companies to focus on maximizing internal talent and resources by means of an improved training program. Spending time and resources now to train employees will help motivate them to be ready to move forward successfully when the economy gets better.

Qualified Instructional Design firms can help you maximize your talent pool by ensuring that your succession planning and talent management processes are setting you up to emerge successfully when the economy takes an upturn.

HR Technology – The Core of Strategic HR

Do you feel as if your human resource department has turned into a mess of administrative work?

Are your core processes muddled with paper-based, manual systems?

Is senior management questioning how HR adds value to the organization?

Is it becoming harder to get additional budget assigned to your department?

If yes, is the answer to any of these questions, it may be time to look at getting out of the “paper pushing” business and take that leap towards functioning as a truly strategic department that adds value to the overall business approach. HR departments alike strive to focus their attention on key elements deemed as “Strategic HR”. This includes recruiting top talent, training/development, and organizational development strategies that focus on employee retention and succession planning. HR departments that can effectively strategize and implement these core functions are truly maximizing the value of human capital. The first step towards this end is the deployment of the right HR technology. Without access to meaningful HR related data, a business cannot measure or analyze trends within their organization. One of the key reasons that companies struggle with gaining visibility into the organization is because data is contained in multiple systems thus limiting any reporting capability needed for analysis. The right HR technology strategy is paramount to deployment of “Strategic HR” as it will minimize administrative processes, easily ensure compliance, and allow access and create meaningful reporting capabilities.

Implementing an end to end HRIS which includes employee and manager self-service is necessary for a business that is striving to become fully paperless. Since payroll is the most accurate data in any organization, it only makes sense to build an HR database off of this data. To maximize the benefits of automation and ensure data integrity, fully integrated or single database for Payroll/HRIS system is the answer. Most systems on the market today deploy role based security which allows designated employees including managers, employees, and non-HR executives to have unique access rights to certain data points that are core to their role in the organization. The system becomes a universal tool that benefits the entire workforce, not just HR. Self- service gives employees, managers, and executives instant access to the information that otherwise was only accessible by the HR department thus eliminating the time consuming requests made on HR. This alone promotes productivity and makes for a compelling ROI for implementing a new system. Explore the benefits that are realized by using an integrated system and the features to look for as your company evaluates the applications on the market today. For a no cost evaluation of your company’s needs or for assistance with a vendor selection process, contact Centripetal Consulting Group at 214-824-4439 or at www.gocentripetal.com.

Key Benefits of an Integrated Payroll/HRIS:

• Improve responsiveness to employees and management with a workflow process that streamlines HR record-keeping and maintains proper audit trails
• Maintain a competitive workforce by simplifying and speeding up hiring, training and retention programs with an accessible, integrated database
• Gain greater control real time payroll processing by eliminating the need to transfer files back and forth, reduce errors and payroll corrections
• Ensure government and payroll tax compliance with automatic updates that keep you up-to-date on the latest regulations
• Plan for talent succession by indentifying top talent and key positions for keeping the business fluid and healthy
• Increase employee retention by deployment of self-service tools that keep employees involved with the employment lifecycle
• Enhance your reporting capabilities with workforce decision data that helps you lower benefit costs, spot organizational trends and take clear action
• Containment of costs including insurance premiums, controlled labor expenses including overtime, Travel and Expense, IT and disparate system related costs
• Improve employee communications through centralized intranet portals and employee survey capabilities
• Create and leverage a standardized infrastructure that will enable executives to better analyze costs associated with their organizational structure for budgeting and forecasting purposes

Key Features of an Integrated Payroll/HRIS

• Applicant Tracking that interface to outside job boards and company website
• Electronic On-Boarding
• Time and Attendance
• Payroll Processing
• Benefits Enrollment and Administration
• Performance Management and Compensation
• Salary Planning and Budgeting
• Automated Learning/Training Management
• Employment History and Succession Planning
• Employee/Manager Self-Service
• Effective Dating
• Open platform for easy integration and import/export to third party systems

HR Outsourcing in a Down Economy

The mid-way point of 2009 has come and gone and the economic forecasting remains positive, however the statistics still remain grim. Unemployment remains at a 20 year high, consumer spending is at the lowest levels since the early 1980s, and disposable income has sunk to levels not seen since 1947. To add to this, health care reform has the country in a tailspin, especially the large populations of employees who make their living in the healthcare industry. Concerned employers wonder how it may impact their businesses in the short and long term. As the economic downturn continues, employers across all market sizes report their top business concerns or threats to their business:

Threats to the Business

1. Diminished productivity due to deflated employee morale and leaner staff
2. Dropping revenues and unpredictable cash flow
3. Increasing layoffs and the potential for rising lawsuits
4. Increasing insurance for healthcare premiums and operating expenses

Employers, both large and small, are not prepared to watch and wait from the sidelines. They have taken matters into their own hands to offset rising operational costs and dropping profits through the use of outsourcing. “Outsourcing” is defined as, “the procuring of services or products from an outside supplier or manufacturer in order to cut costs.” Almost every employer engages in at least one form of outsourcing. In recent years, and continuing through the recession, Human Resources and Accounting top the list as key areas where businesses can immediately realize cost savings and operational efficiency. Because both of these processes are not core functions of the business itself, a return on investment or business case for outsourcing to a third party is easily made. To learn more about the key drivers behind Outsourced Accounting click here

HR Outsourcing Industry Continues to Soar

Human Resource Outsourcing is a business strategy that allows an employer the means to reduce overhead expenses, reduce employer liability, and improve employee productivity. While some employers may select to outsource only specific HR functions like payroll or recruiting, others have opted for a comprehensive, single source solution. To learn more about the differences among HR solutions and providers available to the market, click here.

HR Outsourcing continues to gain momentum as a viable solution for challenged businesses. According to IDC, a global research firm, outsourcing Human Resources functions has become the fastest growing segment of the broader business process outsourcing (BPO) industry. It grew close to 70 percent over the past 6 years, with companies worldwide spending more than $103.3 billion.

Additionally, Centripetal Consulting Group obtained information from Everest Research Institute, an independent research and analysis organization which states that North American HR outsourcing transactions reached $25.4 billion by the end of 2007, an increase of 19 percent over the previous year. In 2008, despite the slowing economy, HRO transactions grew an additional $2.9 billion, an increase of over eleven percent over the previous year. Everest Group, the parent company of Everest Research Institute contributes to this growing number of business utilizing an outsourced HR strategy. Centripetal Consulting Group is currently working with this 70 employee firm to select the right HR outsourcing technology partner which will enable the company to streamline and automate employee related transactions and internal processes.

Why Outsource?

While large corporations feel the impact of a recession, these factors are magnified for small businesses and their recovery time is significantly longer. Public corporations may report diminished returns for their shareholders and are subject to public scrutiny. A small employer can easily go out of business overnight. This is frightening for everyone because small businesses or the SMB market are the lifeblood of the economy. These businesses are run by innovative and motivated entrepreneurs who invest their personal savings, time, and livelihood. They need protection more than a large company, yet many times either cannot afford the internal HR resources or aren’t really aware of their true exposure as an employer.

One of the reasons for the continued growth in HR outsourcing may be attributed to employers who had not considered outsourcing in the past, are now seeing the benefits of HR outsourcing as a means to reduce overhead and cut operational expenses. They’ve been forced to slash headcount. This creates a “do more with less” environment which can compromise productivity. But from a legal and compliance standpoint, employers feel vulnerable to increased regulation associated with employee terminations. The changes to COBRA are one example. This fear has motivated employers to consider the outsourcing to alleviate the burden of dealing with employment related compliance and administration.

The key for small employers to successfully navigate through a recession is to stabilize revenues and improve employee productivity. The cost associated with labor and employee benefits are reportedly the two top line items on the balance sheet, thus making HR accountable and responsible for maximizing employee productivity while minimizing costs and risk. Employers look to HR outsourcing as a means to achieve these objectives:

1. Stabilizing operating expenses increases company value and calms corporate anxiety.
2. Streamlining operations reduces unnecessary overhead and cuts wasteful spending.
3. Lowering insurance premiums reduces overhead and expenses.
4. Minimizing employment risks reduces the potential of lawsuits and complaints to the federal and state agencies, and the resultant legal fees and judgments.
5. Training and motivating staff increases employee morale and improves productivity.

Despite the recognition by many small employers as critical priorities to their success, most simply cannot afford to institute the necessary changes. Even the most efficient employers will be unable to devote the time required to make meaningful changes to corporate policies and procedures. Partnering with an HR Outsourcer helps an employer achieve relief. According to Hewitt Associations, a world-wide provider of HR consulting services and research data, the most common reason for engaging an HR Outsourcing firm is to reduce overhead. Companies clearly recognize the value of utilizing an outside resource to conduct various business-related activities, as compared to maintaining these functions internally. Other reasons to outsource include:

1. Access to outside expertise
2. Improving service quality
3. High cost of remaining up-to-date with rapidly changing environment
4 Eliminate high volume of low-value transactional activities
5. Reduce management distractions away from core business
6. Leverage existing staff to focus on key competencies

Although there are several “flavors of outsourcing”, the providers are not all created equal. However, there are two main types of HR Outsourcing providers: Traditional HR Vendors and Professional Employer Organizations (PEOs). Some employers may select to outsource specific functions, others have opted for a comprehensive solution. To learn more about the variety of the HR solution offering, click here.

Traditional Human Resource Vendors

Traditional HR vendors are firms that specialize in one particular service area, such as payroll, benefits brokerage and administration, recruiting, or training. In a traditional outsourced model, the employer selects a mix of HR vendors to perform specific function that encompass all of their outsourcing needs. To learn more about both the benefits and downside to this approach click here.

Professional Employer Organizations

The second main type of outsourcer is a PEO or co-employment vendor. In this relationship, the PEOshares many of the responsibilities of being an employer on behalf of their client. Through co-employment, small organizations access the economies of scale enjoyed by large corporations. In contrast to traditional HR vendors, the PEO provides a wide array of HR services, effectively consolidating multiple vendors under one roof.

The four key service areas include:

• Human Resources compliance and administration
• Employee Benefits and administration
• Workers’ Compensation insurance and safety consulting
• Payroll and tax filing services

This type of employment arrangement can offer several benefits to an employer, especially in a down economy. Many times a PEO can be a savior to a business owner who cannot afford expensive health premiums, is overwhelmed with paperwork, or is concerned with maintaining HR compliance. Click here to explore if a PEO is a good fit for your business.

On the flip side, an employer may only benefit from a co-employment arrangement for a short period of time as it no longer seems financially compelling to fully outsource the HR function. This trend may occur once the economy strengthens or changes in healthcare occur. Because the PEO performs all HR transactions, it is sometimes confusing or difficult for a company to determine their true costs for each of the services delivered by the PEO. Even if you do determine that it makes sense financially to leave thePEO, it can become even harder to piece the right vendors together to unbundle from the PEO. For help in this area click here.

Workers Compensation vs. Non-Subscriber Coverage for Texas Employers

As the economy continues in a downward spiral trend, employers continue to look for ways to cut costs in non-revenue generating areas of their business. One of these key areas is insurance.  As a private Texas employer, there is an option to “opt out” or non-subscribe from the workers compensation system.  Instead, an employer can choose to assume the risks associated with a potential lawsuit should an employee be injured at work or purchase alternative insurance that provides a lesser benefit. Although, this may be a less expensive alternative, it is important to know the key differences between workers compensation (WC) and occupational accident (OA) in determining if this is the best area to cut costs.

Workers Compensation

Texas employers who choose to maintain workers’ compensation insurance can elect to purchase an insurance policy from a private insurance company, or self-insure. To self-insure, an employer must meet the requirements of the Texas Workers’ Compensation Act and become certified by the Texas Workers’ Compensation Commission. Self-insured employers have the same rights and responsibilities as employers who buy policies from private insurance companies, they are simply utilizing an alternative funding mechanism that includes more out-of-pocket risk vs. lower premium.

In return for an employer paying premiums toward workers’ compensation insurance, workers are guaranteed to be compensated for their injuries and lost wages in the event they suffer a work-related injury or illness, regardless of fault. WC premiums can fluctuate based upon claims experience which are measured by a regulated experience modifier. However, regardless of claim volume or risk tendency, the employer holds no personal liability for losses because WC is governed under tort law.

Benefits for Workers Compensation

Occupational Accident

Texas employers can also choose to “opt out” from subscribing to workers’ compensation. Perceived by many as a worthy alternative to WC, Occupational Accident insurance is an insurance option that provides employers and their employees a degree of protection should a work injury or accident occur.

OA insurance provides coverage for medical costs associated with the injury, disability payments for the injured worker as they are recovering from their injury, and a scheduled benefit for accidental death and dismemberment. The employer chooses a benefit period, usually two or three years, as well as a deductible that is applied to each accident.

The inherent employer risks are unlimited liability, including possible punitive damages. If they lose lawsuits arising from workplace accidents, and in the event of a lawsuit, they forfeit their right to claim one of the three common law defenses:  a) The employee knew of the inherent dangers and assumed the risk;  b) the employee contributed to their own injury or illness (any negligence on the employee’s part, however small, prevents the employee from collecting for injuries); or c) a fellow employee’s negligence caused the injury.

Benefits of Occupational Accident Coverage

Bundled HR Service Solutions vs. Best of Breed Providers

The HR BPO market is forecasted to grow from $20.8 billion in 2004 to $31.3 billion in 2009, reflecting an 8.3% compound annual growth rate. The estimated revenue is $28.69 billion in 2009. (Robert H. Brown, “Gartner Research – Sourcing options Grow as the HR BPO Market Matures,” July 26, 2006)

Many HR service providers have increased their serving offerings beyond their core business to adapt to demands of the market. For example, a 401(k) provider might now offer payroll services, or a recruiting company is now offering benefits brokerage services. Even further, a PEO starts marketing non-co-employment solutions via an ASO arrangement. In several instances, strategic alliances are formed as non-competing HR service providers align in order to accommodate the multiple or changing needs of their client via a bundled “menu of services” type offering. Other HR service providers have chosen to acquire additional companies instead of partnering to strengthen their offerings. Still other firms choose to build additional offerings through their own internal resources and HR industry expertise.

My question then becomes: Do the benefits of a consolidated offering truly outweigh those of “best of breed” providers?

Perceived Benefits of Consolidated HR Outsourcing Offerings:

1. Integration and streamlined processes. With HR technology being at the core of many HR service offerings, several transactional processes can be automated. This is especially true if all HR processes are managed within a single system or by a common vendor. An example of this would be when an employee terminates, a COBRA notification is automatically sent because the payroll provider and COBRA vendor are one in the same. Another example may be that when the HRIS system is told that an offer is being made to a candidate, the process for completing a drug/background check is initiated. In many instances, employers are able to eliminate headcount or reallocate duties as manual processes become automated and less error prone.

2. Multiple service offerings. These allow for the most competitive pricing structure because a bundled offering produces economies of scale. The more business that is given to a single vendor, the more leverage for negotiation. This also holds true for guaranteeing higher service related agreements.

3. Simplified employee experience. One point of contact or one system to access for multiple requests, creates an efficient employee experience. This heightens employee productivity and increases employee satisfaction. A new hire can enroll for benefits, request time off, and view a paystub in a centralized location.

4. Ease of vendor management. Coordinating with multiple vendors is time-consuming and creates risk when dealing with time sensitive and sometimes compliance driven processes. A single vendor approach creates efficiencies and reduces errors. A consolidated invoice for services is an example of this.

Perceived Benefits of “Best of Breed” Multi-HR Vendor Approach

1. Quality of service delivery. A specialized vendor that offers one core service tends to offer a higher quality experience because they are not focused on any other area. Many times this allows for custom solutions designed with the client in mind rather than a “boxed” approach. An example would be a HRIS vendor that delivers a function-rich system that is configured to the needs of each customer vs. an out of the box software application.

2. Access to expertise. Specialty vendors seek a competitive advantage by deploying the best possible industry experts to meet the unique needs of their clients. An example of this would be a health and welfare consulting firm that specializes in servicing employers with self-funded benefit plans.

3. Ease of transition to begin or end vendor relationship. Implementing of a multi-faceted service offering can be a very time consuming project which may create compromised success due to deadlines. Focusing on just one functional area creates a higher success probability because a project isn’t dependent on competing projects. Additionally, if a consolidated vendor is performing well in one area and poorly in another, the entire relationship may be compromised. An example would be an employer terminating a benefits consultant relationship due to poor service and being forced to change HRIS systems because it is core to the bundled offering.

If you are challenged with making a clear distinction as to the best approach for your company, I would suggest asking a few key questions.

The first being what does your company value more: quality or simplicity. Furthermore, are you to simply save hard dollars costs or do you see a greater opportunity for indirect savings by increased quality relationships?

If you are leaning towards a consolidated approach, I suggest asking detailed questions around the service integration. Qualify which resources are actually internal or if some are outsourced partnerships. With this, clarify defined responsibilities of the service provider vs. the employer and more importantly who holds the liability.

If a specialist approach seems more fitting, ask for specific examples of success stories from their clients who were able to achieve measurable benefits that could not otherwise be realized in a consolidated approach.

10 Steps to Control Your Workers Comp Premium

An employer’s experience modification factor is an important component that is used in calculating a company’s workers compensation premium. Controlling your mod will help you to control your costs. Here are a few tips to live by if you are trying to control this cost and your bottom line.

1. Investigate accidents immediately and thoroughly. Take corrective action to eliminate hazards. Be aware of fraud.
2. Report all claims to carrier immediately. Alert carrier to any serious, potentially serious, or suspect claims. Frequently monitor the status of the claim and communicate with the adjuster to resolve as quickly as possible.
3. Take an aggressive approach to providing light duty to all injured employees upon their release from treatment. Supervise light duty employees to assure their conformance with restrictions.
4. In serious cases that involve lost time, communicate with the claims adjuster so that they recognize your interest in returning the injured employee back to gainful employment.
5. Set safety performance goals for persons with supervisory responsibility. Success in achieving safety goals should be used as one measure during performance appraisals.
6. Develop a written safety program and train employees in their responsibilities for safety. Incorporate a disciplinary policy into the program, one that holds employees accountable for breaking the rules or rewards them for correctly following safety procedures.
7. Frequently communicate with employees, on a formal and informal basis, regarding the importance of safety.
8. Make safety a priority. Senior management must be visible in the safety effort and must support improvement.
9. Evaluate accident history and near-misses at least monthly. Look for trends in experience and take corrective action on worst problems first, as soon as the problems manifest themselves
10. If you don’t have the resources available internally to implement these suggestions, hire a third party who specializes in minimizing the risks.

The 10 Benefits of Conducting a Personal Health Assessment

If your organization decides that you will put a Wellness plan in place, the first thing you should do is
conduct an inventory of the current health of your employees. This can be done by having your
employees complete personal health assessments. There are benefits to both you and the employee
for having this done.
BENEFIT #1 Personal Health Assessments provide employees with a snapshot of their current health

BENEFIT #2 Personal Health Assessments bring with them the potential to monitor individual health
status over time.

BENEFIT #3 Personal Health Assessments provide employees with concrete information thus
preparing them for lifestyle change.

BENEFIT #4 Personal Health Assessments help individuals get involved with health coaching.

BENEFIT #5 Personal Health Assessments provide important information concerning employees’
readiness to change.

BENEFIT #6 Personal Health Assessments help employers measure and monitor population health

BENEFIT #7 Personal Health Assessments provide employers with important information that can help
them build results-oriented health promotion programs.

BENEFIT #8 Personal Health Assessments can provide employers with important information on

BENEFIT #9 Personal Health Assessments allow employers to evaluate changes in health behavior
and health risks over time.

BENEFIT #10 Personal Health Assessments engage both employers and employees in the health
management process.

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