Staying current with technology, and justifying the investment in time and money to research it, is never easy. But, in today's economy, every advantage a broker can offer to distinguish his or her services helps. By leveraging the right technology, brokers can enable HR clients to save time and money. They can make better recommendations on plans and potential options for greater cost savings using the timely information technology makes available. It is projected that technology alone could reduce time to manage benefits by 75 percent. As companies strive to cut costs and operate more efficiently, a broker well-versed in technology can be seen as a trusted partner to help HR managers make the move to greater efficiency.
It is projected that technology alone could reduce time to manage benefits by 75 percent.
How do brokers know they are selecting the best technology to help their HR clients manage all of the details of benefits management, or that the solution they select will advance rather than hinder their cause? Following are key questions to ask in the process of making this important decision.
How robust is the technology? What specific features does it offer to help HR save time and money? Providing greater efficiency and saving time and money are the main reasons to implement technology. But it is not always easy to determine the level of automation that each provider offers. "Self-service" capabilities, for instance, can have varying levels of functionality from one software provider to the next. A good self-service system should guide employees smoothly through entering information about themselves and their dependents, clearly present the plans available, enable employees to make choices, add dependents, and change information as necessary.
Will the technology be able to accommodate clients of all sizes and grow with them?
Brokers should evaluate the technology's ability to address the needs of their smaller and larger clients, as well as grow with their clients as they bring on new employees, offices, benefits and rules. Brokers should ask about the thresholds for each of these elements.
What is the degree of flexibility and scalability that the software provides?
Brokers should determine if the software will be able to import data from multiple sources -- Excel spreadsheets, databases, paper documents -- and the level with which it can interface with all kinds of systems and data. The software should be able to take in and filter information from multiple client sources. Ideally, this process should also be automated. Many online enrollment solutions require that data be manually manipulated before it can go to a carrier to update their systems. Automation of the update format, transmission schedule and delivery method can help eliminate billing and eligibility issues.
Will the software be able to accommodate company and carrier rules?
A truly capable system will evaluate each enrollment activity and apply any necessary combination of rules, messages, prompts and options specifically designed to meet the exact eligibility requirements desired. The software should accommodate eligibility rules required by the HR client and carriers with which the broker is working.
Is the software able to integrate with other systems?
Payroll and other functions often share much of the same information on employees (name, address, deductions, etc.) as benefits management. HR technology that can be integrated with other systems can give the broker's clients an added level of efficiency.
How will information be exchanged with carriers?
And, who will be responsible for this interaction? Ensuring successful integration with carriers through benefits management software requires many steps, including:
- Gathering initial implementation data
- Setting up initial integration for the ongoing information exchange
- Coordinating daily or weekly interaction to make sure data is received and accurately applied
- Reviewing ongoing updates
- Ensuring carrier requirements for enrollment are being met in compliance with regulators
- Fostering a proactive relationship with each carrier to improve the relationship of data exchange.
Knowing who is responsible for each task is essential to fully understanding a product offering. Each software provider will offer a different level of integration in providing some, to all, of the tasks outlined above. Brokers should look to work with vendors that demonstrate strong, ongoing, seamless relationships with the company's selected carriers. Many providers enable transmission of a generic ANSI 834 file, which may or may not be accepted by the carrier, a factor often influenced by the size of the group. Managers should look for providers that offer clean, validated transfers (ensuring the eligibility of the transaction), customized to each carrier's needs to avoid issues. They should also look to providers that have a dedicated Electronic Data Interchange department to interact with the carrier's own, specific transfer language.
Will the technology provide HR with the authority to decide who will be allowed access and to what degree?
Along the same vein of providing employee access, the technology should give HR the final say. Brokers should ensure that their HR clients will have the authority to approve all data before it is transmitted to carriers, and should also determine the extent to which employees and others have access.
Does the system provide a means of checks and balances?
In addition to enabling HR to approve transactions, many systems also provide capabilities to serve as the gatekeeper in auditing carrier billings to ensure agreement with the data in the system. This can confirm the accuracy of carrier invoices, save time and money, assist in the timely delivery of employee enrollments, and enhance confirmation of eligibility when employees go for care.
Who is responsible for implementing or building the solution?
What level of training is involved? Brokers should be aware that some HR solutions are less user-friendly than others and may require the client to attend extensive training, which can be overwhelming for already busy benefits administrators and HR professionals. The broker should have a clear understanding of the level of training and technical expertise that will be required and the amount of time expected. Questioning solution providers on this topic can provide insight into subtle areas that might initially appear simple, yet involve significant technological expertise.
What types of maintenance/upkeep are required?
When software is installed on a HR client's workstations or servers, regular updates to that technology are often required and may be cumbersome to plan for and manage, frequently requiring additional time on the part of the broker. With software available online through an Application Service Provider or Software as a Service model, updates to technology are often made automatically.
What level of customer service is provided?
Is there an additional charge for service? Brokers should assess, in advance, the level of support provided, since subpar service from a technology provider can end up costing him/her time in trying to help clients with technology issues. Customer service can take multiple forms--online help via a database, online chat, e-mail support, conversations with a live person, or a combination thereof. Given the sensitivity of benefits information, brokers and their HR clients should expect a response to inquiries within 24 hours from a direct contact that can help.
Who will own the data?
The answer to this question should be the client. Companies should be able to transport their data to any Application Service Provider . Brokers should be aware that if the data resides on a carrier's proprietary server, his/her client may be charged additional fees should he/she switch carriers.
What security measures are built in?
If the software is available online, through an ASP or SaaS model, the provider should offer daily backups, backup servers, added protective layers, and other systems and procedures to safeguard information from being lost or accessed by unauthorized personnel. HR and other managers should have exclusive authority to decide who will be allowed access and to what degree.
What is the cost of the system, and does it outweigh the benefits?
Frequently, the broker and his/her organization will absorb the cost of the HR system, or he/she may decide to pass it on to the client. Regardless, the broker should assess the complete cost of the system alongside the benefits expected. This includes all annual, monthly, and one-time charges. A slightly more expensive system may more than pay for the difference between systems with features that enable a client's employees to maintain their own records and offer greater convenience, time savings, and accuracy. These factors should be considered and weighed.
Art Brooks is vice president of BeneTrac, a Paychex company and provider of Web-based electronic enrollment and employee benefits administration software online at www.BeneTrac.com.
Sidebar: The tech edge: What it can do for you
Brokers also stand to benefit from technology on a number of fronts. They can use it to reduce billing and eligibility issues for clients. Should an issue arise, a quicker resolution is available when transaction history is readily available. Lowering the cost to service a client can notably improve the profitability of the broker's business and enhance retention. Additionally, a book of business grown and well-managed with technology can often be considered more valuable, because of the increased trust obtained through customers in the process of implementing technology and greater likelihood that they will stay with the system and broker. A brokerage that is using technology is also often more attractive to a younger broker seeking to join the company.
