HR Technology Key Insights for Mid-Market Employersnews-info.gcgfinancial.com/acton/attachment/13579/f-0477/1... · HR Technology Key Insights for Mid-Market Employers ... process

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Your Resource for HR Technology BenefitTechnologyResourcesLLC

HRTechnologyKeyInsightsforMid-MarketEmployers

Benefit Technology Resources LLC Confidential & Proprietary Information – Not for Distribution

2 2 TODAY’S AGENDA

1 Who is BTR

2

3

Technology Trends 4

5

6

Challenges Facing HR Today

ACA Reporting & Preparation How to Have Success with Technology

Benefits of Leveraging Technology


3 3 WHO IS BTR?

•  Benefit Technology Resources (BTR) is the largest mid-market HR technology consulting firm.

•  We are independent—provider agnostic (not tied to any providers).

•  We specialize in HR technologies that include:

ü  (ACA) Healthcare Reform Compliance ü HRIS—Human Resource Information Systems ü  Benefits Administration ü  Payroll Administration ü  Time Keeping ü  Performance Management ü Recruiting ü  Talent Management ü  And More…


4 4 PROVIDERS – THERE ARE OVER 400 IN THE MARKETPLACE


5 5 HR Technology Trends in 2016


6 6 CHALLENGES FACING HR TODAY

•  ACA Compliance is challenging •  Rising costs that impact HR •  Data integrity issues with multiple points of entry

•  Lack of business intelligence/combined reporting

•  Lots of choices. 400+ in the market today


7 7 KEY INSIGHTS


8 8 KEY COMPLIANCE DATES


9 9 ACA - EMPLOYERS NEEDED TOOLS TO COMPLY

•  Trackinghoursandeligibilityfrommul6pledatasources

•  YearEndFormsandRepor6ng

-Both?

•  Howhasitgonesofarwithyour2015repor6ng?

•  Whatop6onsdoyouhavetoimproverepor6ngfor2016?

•  PayrollProvider?

•  BenefitsAdministra6onSolu6on—s6llonpaper?

•  StandAloneACATool?


10

Payroll

Performance Management

Time Keeping

HRIS

Recruitment/ Applicant Tracking

Benefits Admin

HOW DO EMPLOYERS TRACK & REPORT?

EmployeeData,AffordabilitySafeHarbor

ALEDetermina6on,Hoursworked,FullTimeEquivalentStatus

Eligibility,BenefitStatus,DependentInforma6on,WaiveReasons,CoverageBegindates,enddates


11 11 ACA OUTLOOK

ACAServiceProviders:•  Slowtorespondtoclients•  Dataandprocessesarefragmented•  Notallaredeterminingthecodesforlines14and16•  Over-commitandunder-deliver•  Challengedbycon6nuechangesbyIRS•  Changingtheirfees

•  Wehaveheard,“theformsaregoingoutwhethertheyarecorrectornot!”


12 12

1095filingdeadlinenoJceTheMarch31stdeadlinetomail1095’sisquicklyapproaching.Only54%ofthecompaniesaresetuptoprocess1095’shaveprintedtheirformsandusersaresJlladding10,000to15,000formsperday.WeareconcernedourusersarewaiJngunJlthelastminutetofinishprocessingsothefollowinginformaJonisveryimportantforyoutoknow:•  WewillnotguaranteeformssubmiVedaWerMarch29thwillbeprocessedandmailedbyMarch31st•  FormsprocessedontheprintdeadlineofMarch31stwillincurpeakpricing($1surcharge)•  Whiletheofficialsubmissiondeadlineis12:00PMESTonMarch31st,wecannotguaranteesystem

availability—ifyouwait•  TheprocessingqueueforgeneraJngformsisbusiestbetween2:00PM-6:00PMESTWestronglyencourageeveryonenottowaitunJlthelastminutetofiletheir1095formsfortheabovereasons.WealsoremindyouthatinorderforyourfilingstorunsmoothlyourSupportstaffmusthavesufficientJmetotroubleshootanyquesJonsyoumayhaveinordertosuccessfullyfileonJme.

ACA PROVIDERS - WHAT ARE THEY SAYING


13 13 A RECENT ADP STUDY A new study reveals confusion about the first new major tax-filing forms that the U.S. gov has introduced in more than 70 years—one form will be required by millions of people when they file their 2015 income tax returns to the Internal Revenue Service (IRS) in 2016. Two in five employers say they are unfamiliar with these forms 32 % of large enterprises (those with 1,000 employees or more) 18 % of midsized businesses (those with 50 to 999 employees) planned to file for an extension. Awareness among the millions of U.S. employees is very low. 83% of midsized employers and 57% of large employers don't think their employees clearly understand the forms or how they may be related to their 2015 tax filing obligations. Only 20% of midsized businesses and 32% of large organizations have started communicating with their workforce about the new form and the implications it carries. Study released mid Jan 2016 (4 months ago)


14 14 ACA OUTLOOK

GeneralObservaJons:•  TheIRSwillbeoverwhelmed(newdatates6ngsystem)•  Capacitywillcon6nuetobestretched•  Somepayrollprovidersarerequiringaddi6onalmodules •  Thepoolofviableproviderswillshrink

•  Somewillfailandleavethemarket•  Otherswillbepurchased/acquired


15 15

v LotsofNewTechnologyinthemarket•  NewProvidersintheHRTechnologySpace•  Algorithmstomakebigdatauseful(thinkpersonalFacebooksupdateslendingtorecrui6ngefforts)

•  EmployeeEngagementso]ware•  PerformanceManagement

•  NewUserInterfacerollouts•  Mobilecapabili6es

TECHNOLOGY IN TODAY’S MARKET


16 16

•  HighAc6vityLevels—employersaremovingtomorerobusttechnology•  HRTechnologyisfinallyimpac6ngthebo`omline•  ACAcompliancehasbeenpainfulandcanbecostly•  BasedonstudiesandresearchEmployerswant:

Bottom Line = Employers Want MORE Automation!

TECHNOLOGY IN TODAY’S MARKET

•  PaperlessOnboarding•  OnlineBenefitsAdministra6on•  HRISComplianceandTracking•  MobileCapabili6es


17 17 BENEFITS OF LEVERAGING TECHNOLOGY

ü Healthcare Reform Compliance—reduce the risk of potential fines, automate the paper burden.

ü Total savings of $19.07 PEPM can be realized through the accuracy and efficiency of complete automation (bswift benchmark study surrounding billing)

ü Reduce errors and omissions—88% of spreadsheet documents contain errors. (University of Hawaii analysis)

ü Reduce multiple points of entry (payroll, HR, timekeeping and carrier websites).

ü Reduce paper with Employee and Manager self-service (i.e. onboarding and workflows).

ü Streamline and centralize communication campaigns.


18 18

Discovery/NeedsAssessment Prepare your Request for Proposal (RFP) to begin the provider review process

Ongoing technology support

We conduct a detailed discovery of your business needs

Analyze proposals received

Schedule demos

Review agreements Assist with acquisition decision

Provide support during implementation

PostIm

plementa6on

Phase

SearchPhase

HOW TO HAVE SUCCESS WITH TECHNOLOGY


19 19 HOW TO HAVE SUCCESS WITH TECHNOLOGY

•  ConsultwithStrategicPartnersforassistance—thisisabigexpenditure•  Doyourowndiscoverybeforejumpingintoaproject•  Determinewhatsuccesslookslikeattheend—SetProperExpectaJons!

•  Includeallstakeholdersinkeydiscussionsfromthebeginning•  Tweakthingsalongthewayandupdateyour6melineasneeded

•  Don’trush—besureyouhavegivenyourselvesareasonable6melineandallowfortes6ngandmoretes6ng

•  TESTTESTTEST•  Measureresultstodetermineifitwasasuccessfulimplementa6on.•  Haveastrongcommunica6oncampaigntoeducatemanagersandemployees


20 20 HR TECHNOLOGY AUDIT CASE STUDY #1

Client

•  400 employees located in NC

•  Utilized Paychex for payroll only

•  Client was using separate systems for:

Time Keeping Recruiting Payroll No ACA No HRIS System No Benefits Admin System No Performance management system

•  Client was paying $70,000 for payroll administration only.

Details

•  We went through an RFP process with this client and included 4 of the top providers in this space.

•  We were able to deliver ACA, payroll, HRIS, benefits administration, and performance management for $57,600.

•  Cost direct with provider would have been $75,000.

WIN WIN

•  Value for client was in the time they did not have to spend on this project, as well as cost savings.


21 21 HR TECHNOLOGY AUDIT CASE STUDY #2

Client

•  150 employees in Florida

•  Not ACA compliant.

•  Struggling with current payroll provider.

•  Disparate systems •  No HRIS system.

•  No Benefits Administration system.

•  Manual processes. .

Details

•  The client asked us to go through an HR Technology Audit.

•  Please refer to next few slides.


22 22

Payroll system

Time Keeping

Medical Carrier

EE Training and Licenses

LTD / STD Carrier

FSA Carrier FMLA Spreadsheets

Internal Company Portal

COBRA Carrier

Background checking software

Recruitment Spreadsheet

Applicant Tracking Spreadsheet

E-Learning Software

Performance Management Spreadsheet

BTR identified 16 different touch points for each new hire, status change, and termination.

Time Keeping Spreadsheet

OSHA Incidents

WHAT IS BEING DONE MANUALLY?


23 23 WE ALSO REVIEWED THEIR BENEFIT PROCESS

Manual process, employee

completes forms

HR tracks employees’

waiting period

HR follows up with employee to

see who has completed the

forms.

HR receives form, and then

completes a benefit deduction form and faxes it

to the Payroll provider

HR routes deduction form to the payroll administrator

HR manually keys in add/term/

changes into each carrier

website: Medical, Dental, Vision, Ancillary,

etc.

HR sends confirmation to Broker that the

employee is enrolled

Monthly carrier bills are manually

reconciled by HR. Approx. 3

hours per month

Payroll administrator manually keys

deductions into payroll

RED IS MANUAL BLUE IS AUTOMATED


24 24 BENEFIT PROCESS WITH BENEFIT ADMIN SYSTEM

Employee logs into enroll

online

Eligibility is managed in the

system

Payroll deduction file

is sent electronically

to payroll provider

Eligibility files are

electronically submitted to

carriers

Monthly carrier bills are

reconciled through the

system

Wewereabletogetthisclient’sLifeandDisabilitycarriertopayforthecostofaHRIS/BenefitsAdminsystemwithACA.Costwasapproximately$3.50PEPM.

WINWIN-Theclientimplementedaplahormtheyneededanditwascostneutral.


25 25 HR TECHNOLOGY AUDIT CASE STUDY # 3

Client •  1,110 employees based in the Southeast. •  Towers Watson was the current benefits

administration provider. •  Cost was:

$100,000 to implement $18.50 PEPM

Details

•  BTR managed the RFP process for the client. •  We selected 5 providers to review. •  The cost of the new provider with better

technology: $30,000 Implementation $7.50 PEPM

$-

$200,000.00

$400,000.00

$600,000.00

CurrentProvider NewProvider

CostComparison

AnnualTotal

PerEmployeePerMonth

Implementa6onFee

Reviewyourcosts


26 26

ThankYou!

Weareheretohelp!


27 27 HRCI CONTINUING EDUCATION CREDIT

AcJvityID:269116

HR Technology Key Insights for Mid-Market Employersnews-info.gcgfinancial.com/acton/attachment/13579/f-0477/1... · HR Technology Key Insights for Mid-Market Employers ... process

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