How Technology is Transforming HR - Greater Valley … Technology is Transforming HR. October 13,...
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Transcript of How Technology is Transforming HR - Greater Valley … Technology is Transforming HR. October 13,...
Rich GordonSenior Consultant, Technology Solutions| NFP Corporate Benefits
Rich has over 25 years of experience in the health and welfare benefits industry. For over 20 years, he has focused his efforts exclusively in the area of benefits technology and outsourcing solutions. Rich has helped scores of employers identify the most appropriate, cost effective administration practices and streamline the increasingly complex task of administering and communicating employee benefit programs.
As an experienced technology and H&W administration / outsourcing professional, Rich has held key management positions at FLX Corporation, Ceridian, and eBenX, prior to joining NFP.
Rich Gordon2600 Kelly Dr. | Suite 300 | Warrington, PA 18976P: 267.482.8372 | C: 215.264.3594 [email protected] | nfp.com
Provides technology, administrative process and outsourcing guidance.
Rich has worked with dozens of organization’s HR Departments in the areas of Recruitment, Retention, Cost Reduction, and Strategic Planning.
Rich KreksteinVice President | NFP Corporate Benefits
As the VP of Corporate Benefits, Rich manages all of NFP’s regional new client development and marketing initiatives in addition to playing a key role in managing existing clients. His creativity and client focus have been instrumental in attracting and retaining client-partners over the years. Since joining NFP in 2007, Rich has played a significant role in helping grow NFP into the largest privately held employee benefits firm in the area, offering best in class client service and support to over 320 mid-market clients.
Rich Krekstein2600 Kelly Dr. | Suite 300 | Warrington, PA 18976P: 267.482.8389 | C: 215.828.4037 [email protected] | nfp.com
EmployeeBenefits
Retirement Solutions
Property &Casualty
ExecutiveBenefits
Wealth ManagementSolutions
Fastest growing large brokerage as by Employee Benefits Adviser
Largest U.S.-based privately owned broker as ranked by Business Insurance
#4Largest benefits broker by global revenue as by Business Insurance
#5
Strength in Numbers Nationally
x100
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Evolution of HR and Technology
PayrollTime & Attendance
Employee Files
Performance Management
CompensationFMLA Tracking
Recruiting
Employee/Manager Self Service
Benefit Elections
Communication / Education
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The Challenge
When it comes to human resource services and benefits, businesses today are faced with numerous challenges, including:
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PAPERWORK
Increased ComplexityInformation Overload
Presentation Overview
Technology, as it relates to employee benefits, has two distinct(but very interrelated) areas:
Transaction Management
Communication
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Transactional Challenges
• Determining eligibility - who’s eligible, for which benefits, at what costs• Multiple benefit groups• Different contribution amounts for different populations• Contingency plans• Voluntary benefits
• Capturing enrollments for employees and dependents• Updating carriers, vendors, payroll• Managing life events and adds / changes / terms• Transfer of deductions $ from payroll to FSA, HSA and Voluntary vendors• Creating self bills• Reconciling carrier list bill invoices• GL accounting of charging cost of benefits back to divisions / locations /
business units / cost centers
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Transactional Challenges – What Could Go Wrong?
• If paper, human error and managing the inconsistent flow of activity• Employees on carrier system long after they should have terminated
• Industry averages tell us that manual administration results in 3%-7% error rate
• At $10K per employee and 300 lives – 5% is $150K• Inaccurate deductions, missed deductions, retroactive deductions or no
deductions at all• Customer service issues arise when administrative delays/errors result in
employee/dependent claims that are not paid or paid incorrectly• Timing delays result in retroactive billing and claim activity which is brutal for
both HR and for the employee• HR time spent fixing problems that should not have occurred in the first place• Opportunity costs for HR staff, time spent away from strategic initiatives
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Administrative Alternatives
Payroll Vendors…to name a few!
• Varying degrees of benefits administration functionality ‘out of the box’• Typically can be configured by a non-programmer• Virtually all have web enrollment capabilities• Most will integrate with carriers• Implementation support is ‘hit or miss’• Ongoing support is typically an 800#• Usually little or no built in communication capabilities
Key to success• Understanding what system can and cannot do as it relates to your plans• Automate what you can, put processes in place to manage what you can’t
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Administrative Alternatives
HRIS Vendors…to name a few!
• Typically limited amount of benefit administration functionality ‘out of the box’• Need a higher level technical expertise to configure application for plan
design• Each client has freedom for unique customizations• All have some level of web enrollment capabilities• All will integrate with carriers although it’s typically pretty expensive• Implementation support is a full blown project involving technical staff and/or
technical consultants• Ongoing support is through internal resources• Usually little or no communication capabilities
Key to success• Open and detailed communication between the IT folks, who are building the
application, and the HR/Benefit staff who are using the application. IT folks don’t know the nuance of benefits administration so HR must stay very involved.
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Administrative Alternatives
Best of Breed
…to name a few!
• Typically used when there is either no HRIS functionality, not inclined to use resources to build out HRIS functionality or have multiple HRIS/Payroll instances
• Built specifically for benefits administration so typically includes functionality for the latest offerings...HSA, Limited Purpose FSA, Surcharges, Wellness Credits, Voluntary Benefits, etc.
• Implemented, configured and supported by benefits administration professionals• Usually a long list of nice, useful standard reports• Custom reporting tools built for relatively non-technical users• Rich, integrated communication tools
Key to success• Allow plenty of time for the implementation and work closely with internal
resources to integrate application with HRIS and/or Payroll systems.• Take advantage of communication functionality
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Case Studies
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• Implementing ADP which had previously not been implemented• WFN web enrollment• Carrier feeds replaced manual efforts and found significant
errors• Integrated with payroll• Introduced third party communication initiatives
Case Studies
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• Client with HRIS system but hadn’t done carrier feeds• Introduced a carrier connection integration tool• Pre-carrier feed audit of data• Carrier feeds• Billing reconciliation• Claims reconciliation
Case Studies
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• Client with old HRIS with plans to upgrade• Best of Breed• Replace one-on-one enrollment with web enrollment• Carrier feeds• Drive participation in HDHP plans• Voluntary benefits pays for technology
Implementation Pitfalls
• Set your own proper expectations• Be patient and finish the job!• Automate carrier feeds whenever possible … there could be real
money lost• If carrier feeds are not possible, periodic audits
• Don’t try to make a system do what it doesn’t want to do• Introduce communication tools whenever and wherever possible
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HR Benefits Communication
The Old• Minimal plan changes due to minimal cost increases• Relatively simple plan designs, typically rich benefits• Fewer employee choices
The New• More choices within the plan• Greater responsibility of employee regarding use of plans• More employee money at stake• Competition for mindshare, need for shorter more targeted messages• Need for ‘just in time’ information• Information must be personal to be effective• Potentially huge difference between how your population digests information
• Young/old• White collar/Blue collar
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The Who, The What , The How
• Who are we communicating to?• Employees• Spouses & Dependents
• What is the goal of the communication initiative?• Education• Behavioral change
• What medium can we use to get message across?• Paper• Email• Video• Interactive media• Web
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Types of Communication Initiatives
• Plan Selection - Which plan is right for my family and me?• Decision support tools designed to help employees pick the right plans for their
current income, health profile, and health risk appetite• Plan Education - How do I use the plan I selected?
• CDHP education• Deductible vs. Coinsurance• 3 Tier Networks• Formularies, Step Therapy, Service Referrals
• Consumerism - How to become a better consumer of healthcare?• Provider negotiation• RX- Brand vs Generic• Which provider, for which services, quality vs. cost?
• Behavior Change• Wellness initiatives / preventive screening compliance / lifestyle changes• Disease management compliance• ER vs. Urgent Care• Imaging
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Plan Selection - Decision Support Tools
• Meet Alex• Ask Emma• Employee Profiles• Employee Cost Calculator• Carrier Tools
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Plan Education
• Guidespark• Brainshark• Video Guy• WebEx• Interactive Guidebooks• Carrier Portals
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Behavior Change
• To change behavior you must show the “WIFM”• What’s in it for me?
• ER vs. Urgent Care • Imaging• Rx
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