Clients calling Mayday? Design a benefits technology strategy to - PowerPoint PPT Presentation

Clients calling “Mayday”? Design a benefits technology strategy to answer their distress call Scott Evans, benefitexpress

YOUR CAPTAINS Scott Evans Bruce Shutan Chief Product Officer Contributing Editor benefitexpress Employee Benefits News/Advisor Presenter Moderator

Your itinerary • How to assess your readiness: learn and identify the benefits administration model that is right for you • How to create a benefits technology strategy for your business which is seen as an imperative – not a “value add” – by your clients • Key criteria for evaluating potential benefits technology partners

Which is having the greatest impact on the use of benefits technology among your clients ? ☐ Compliance (e.g.; DOL, ACA, FMLA, Paid Family Leave) ☐ Demographic shifts for clients ☐ Consumer expectations evolving ☐ Need for greater efficiency / cost-control ☐ New technologies, cloud-based software

Reading the current benefit administration tides FUTURE OUTLOOK SIGNS OF MATURITY • Pure defined contribution is coming • More online than paper • More mobile • Move from transactions to strategy • 365 engagement • Improved communication methods • Better integration • Ben Admin for everyone

When it comes to benefits administration, many employers are calling “mayday ” 2014 2017 More employers More employers are are increasing 2 in 3 3 in 4 Increasing Ben Admin Ben Admin outsourcing outsourcing Employers Employers <100 100-999 1,000+ Top Mentions Employees Employees Employees Those outsourcing Increased number of are expanding 12% 24% 35% outsourcing vendors since 2014 the scope 2 3 5 Average number of vendors used Source: Guardian 4 th Workplace Benefits Study, 2017

And so are brokers… Areas where brokers need more support Benefits administration platform 64% 53% Payroll integration 53% Enrollment services 51% ACA compliance capabilities 49% HR management capabilities Quoting 29% Renewal support 26% Marketing/sales support 26% Support CDHP , defined contribution 21% Client service support 17%

What does this mean for you? • Technology will continue to evolve & play a more intricate role in our lives and businesses. • As newer generations move into the workforce, start businesses or move into decision making roles, agencies will need to: ✓ Adapt ✓ Learn ✓ Innovate But most importantly, ✓ Develop a benefits technology solution to answer your client’s distress call

In what ways does technology most enhance the value of your business today? ☐ Protect: Defensive strategy against tech enabled competitors ☐ Grow: Win new clients ☐ Revenue: Growth of voluntary, ancillary, wellness, other ☐ Expenses: Ease administrative burden / inefficiency ☐ Clients: Meet their needs – compliance, cost-control

STEP 1: Assess your readiness Learn and identify the benefits administration model that is right for you

“ When it comes to benefit enrollment, it’s all about the big picture — not just a once-a-year requirement. Smart brokers know that a successful benefit enrollment “ requires taking a long-term view and a holistic, rather than piecemeal, approach. — Jay Hutchins, California Broker Magazine

Different types of OWNER PARTNER ADVISER BUSINESS MODELS Has Own Platform Partners with a Advises Clients on Tech Consultant Their Options “I provide ben admin “I work with an entity “I recommend the best What is the Broker support to my clients as that has a full-service platform for my clients VALUE PROPOSITION? part of my service” ben admin platform” and negotiate funding” Who is the PLATFORM Broker Tech Consultant Ben Admin ADMINISTRATOR? Who contracts with Broker Tech Consultant Client SOFTWARE PROVIDER?

Different types of OWNER PARTNER ADVISER BUSINESS MODELS Has Own Platform Partners with a Advises Clients on Tech Consultant Their Options • More Flexibility/Choice • Complete Control • 2-3 Solutions CONSIDERATIONS • Can Tailor Solutions • Only One Solution • Scale When Selecting a • Scale • Resource Requirements • Trust & Experience Business Model • Trust & Experience • Expertise Needed • Expertise Not Required • Expertise Not Required • Compliance & Security • Compliance & Security • Compliance & Security

Which is most difficult for your clients in managing their employee benefits programs? ☐ Maintaining legal / regularly compliance ☐ Improving efficiency of benefits administration ☐ Controlling other benefits related costs ☐ Communicating benefits plans to employees ☐ Improving workforce well-being

STEP 2: Create a benefits technology strategy for your business One that is seen as an imperative — not a “value add” — by your clients

DEVELOP THE STRATEGY Address key Your …and find the YOUR BUSINESS Business questions about… intersection Strategy STRATEGY YOUR YOUR Your Technology TECHNOLOGY Your CLIENTS’ Partner(s)’ PARTNER(S)’ Clients’ Capabilities NEEDS Needs CAPBILITIES

ADDRESS KEY QUESTIONS ABOUT YOUR BUSINESS Model & Strategy • Size of Firm • # of Clients, Geographic Reach • Client Mix by Industry, Size Segment • Growth Strategy & Role of Technology • In-house Technology • In-house IT Expertise/Resource

ADDRESS KEY QUESTIONS ABOUT YOUR CLIENTS Profile & Needs • # of Employees, Locations • Industry • Workforce Composition (age, use of tech) • Benefits Plan Complexity • Benefits Management Style (e.g., Hands-on/off) • Integration Points • Use of HR Technology

STEP 3: Understand key criteria for evaluating a potential benefits technology partner Partner with an expert – let them handle the technology

Business Model • Company Ownership • Market Reputation • Pricing Models and Consistency • SaaS vs. Full-Service vs. Both • Capabilities Scope and Reach • Carrier Partnerships • Software Provider Partnerships

Software Features • Software Ownership • Who Stores/Transmits the Data • Infrastructure and Q4 Up-time • User Experience • Integration with Carriers/HCM Systems • Customize vs. Standard Configuration • Specific Features Important to You /Your Clients • Proof of Security Audit

Operating Model • Years in Business • Number of Employees (Technical vs. Client-Facing) • Number of Group Clients & Associated Lives • Implementation Process (Roles/Responsibilities) • Client Support Model, Client Satisfaction Metrics • Transparent Service Level Agreement • Tech E&O & Cyber Security Insurance

How many benefits technology partners interact with your business? ☐ I don’t leverage technology today ☐ I have tested several, but not sure we’re committed to any ☐ I have a single vendor ☐ I have 2-4 partners I use to cover most client needs ☐ Unlimited. I use partners based on my client’s needs

QUESTIONS?