In a world where technology is becoming more and more ingrained in our everyday lives, the same is true for insurance and employee benefits administration. While insurance carriers are notoriously slow to adapt to change, current market demands have left them no choice but to embrace technology and software integration. Even as carriers work to enhance their own systems, independent software developers and technology companies have brought solutions to market, forcing collaboration between the two industries. Payroll Providers, Third Party Administrators, HR Information Systems and brokers all have a seat at the table when it comes time for employers to choose the right platform for their benefits administration.
What is Benefits Administration?
Benefits administration is a general term for the management of employer sponsored benefit programs.
This includes day-to-day tasks such as onboarding, enrollment, communication and compliance. Managing a competitive benefits program is a complex and time-consuming process for HR professionals, this is especially true for small and mid-sized businesses that don’t have the resources to hire a team of employees to help manage this process. To help alleviate the additional strain, employers are looking for a comprehensive solution that will allow the benefits to be managed on a single platform.
Why Should You Use a Benefits Administration Platform?
Employees are more tech savvy than ever and have come to expect a certain level of communication and ease of use. Everyone wants great benefits and to feel like they are being taken care of but knowing what’s available, how much it will cost and how to utilize them can be overwhelming.
This is where a benefits administration platform can help.
An all-in-one platform allows for a single sign-on for enrollment, pricing information, plan descriptions and carrier resources. This is especially beneficial as many benefits programs include a variety of different insurance carriers. Having all your information in one place will not only help boost employee plan participation but make them feel like they are getting the most out of their employers’ specific offerings. This is crucial for attracting AND retaining talent which is the overall goal of your benefits program.
What are Your Options?
There is no shortage of options in the market for employers looking to streamline their benefits administration including:
- Major Payroll Providers
- Human Capital Management Systems, HCM
- Tech Startups
- Third Party Administrator
- Broker Licensed Technology
Many of these platforms provide similar solutions including enrollments, onboarding, benefits communication and resources, payroll deductions, compliance alerts and customized reporting.
At HWP, we are able to partner with a variety of different platforms, but some of the most popular include:
- Employee Navigator -a broker licensed platform
- Kelly Benefits and BenefitMall–third party administrator/broker partner platform
- Rippling, Gusto and Bamboo HR–tech startup/payroll provider
- iSolved, PayChex, Paylocity, ADP–payroll/human capital management system
Each platform provides unique experiences and integration opportunities for employers and employees.
Using a system like Employee Navigator allows your broker to fully customize the employee benefits experience by working with employers to design the system from scratch. This allows for every aspect of your benefits program to be on a single, user-friendly platform that can integrate with insurance carriers, outside vendors and existing payroll systems.
Kelly Benefits and BenefitMall also have similar capabilities but are managed by a 3rd party so lead times are typically longer and system limitation may impact customization.
Rippling, Gusto and Bamboo HR are somewhat new to the market but have become extremely popular with startups and companies that don’t have the resources to dedicate to fully staffed HR and Admin Departments. These platforms provide ease of use, and a one-stop shop for both employers and employees.
Lastly, payroll providers or HCM systems like iSolved, PayChex, ADP and Paylocity have the most brand recognition, resources and track record of success. They can also provide a one-stop shop for payroll, benefits administration and human capital management but their business model might not allow them to dedicate the time or expertise to effectively advise employers on their benefits program, especially small employers. This is why it’s normally best practice to partner with a benefits advisor who can advocate for you and help manage the day to day that comes along with a competitive benefits program.
With so many options, it can be hard to choose the solution that is right for you. A few things to look out for are emphasis on customer service and support, ease of use, reputation and longevity in the industry. The last thing you want to do is commit to a platform that is new to the market and doesn’t have a track record of sustained success.
How can an Employee Benefits Advisor Help?
Having your broker or benefits advisor involved in this process is crucial to the sustained success of your benefits administration goals. Not only do they serve as a resource when implementing and managing your benefits administration system, but they are likely more familiar with the options you are considering and can help you make the right decision. They can also be an advocate for you while you are researching different platforms and can advise on the tools you actually need versus ones that are being upsold to you.
Some payroll providers and technology platforms will try to convince you that they can serve as your broker. They will offer discounts and sell you on an all-in-one solution, but this is generally not in the employer’s best interest. They know payroll and technology; they don’t know your benefits well enough to effectively manage them nor have the time and resources to dedicate to you and your employees.
As technology evolves and more and more solutions become available, it’s more important than ever to have a trusted benefits advisor that can help you navigate the ever-changing employee benefits landscape.
If you’re in need of help deciding which platform is right for you or need assistance managing your current platform, our team is here to help you.
This blog is meant for informational purposes only and is not an endorsement of any product or software.
About the Author
In his role at HWP, Marty acts as an employee benefits advisor focusing on helping employers of all sizes and industries implement and enhance their benefits programs. He also is well versed in Individual Life insurance and Disability products.
Marty holds a Business Marketing & Management Degree from Fairmont State University. He is also a Registered Employee Benefits Consultant (REBC) and is currently working to attain his Chartered Life Underwriter (CLU) designation from the American College of Financial Services.
Email: mbonifant@hwphillips.com
Phone: 202-351-0269
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