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

Bruce Shutan

Contributing Editor Employee Benefits News/Advisor Moderator

Scott Evans

Chief Product Officer benefitexpress Presenter

YOUR CAPTAINS

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

SIGNS OF MATURITY

• More online than paper
• Move from transactions to strategy
• Improved communication methods
• Ben Admin for everyone

FUTURE OUTLOOK

• Pure defined contribution is coming
• More mobile
• 365 engagement
• Better integration

Reading the current benefit administration tides

When it comes to benefits administration, many employers are calling “mayday”

More employers are Increasing Ben Admin

• utsourcing

More employers are increasing Ben Admin

• utsourcing

Those outsourcing are expanding the scope

2014

2 in 3

Employers

2017

3 in 4

Employers Top Mentions

<100 Employees 100-999 Employees 1,000+ Employees Increased number of

• utsourcing vendors since 2014

12% 24% 35%

Average number of vendors used

2 3 5

Source: Guardian 4th Workplace Benefits Study, 2017

Benefits administration platform Payroll integration Enrollment services ACA compliance capabilities HR management capabilities Quoting Renewal support Marketing/sales support Support CDHP , defined contribution Client service support 64% 53% 53% 51% 49% 29% 26% 26% 21% 17%

And so are brokers…

Areas where brokers need more support

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
• r 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

• f 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

• nce-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

OWNER Has Own Platform PARTNER Partners with a Tech Consultant ADVISER Advises Clients on Their Options

“I provide ben admin support to my clients as part of my service” “I work with an entity that has a full-service ben admin platform” “I recommend the best platform for my clients and negotiate funding”

What is the Broker VALUE PROPOSITION? Who is the PLATFORM ADMINISTRATOR? Who contracts with SOFTWARE PROVIDER?

Broker Tech Consultant Ben Admin Broker Tech Consultant Client

Different types of BUSINESS MODELS

OWNER Has Own Platform PARTNER Partners with a Tech Consultant ADVISER Advises Clients on Their Options

• Complete Control
• Only One Solution
• Resource Requirements
• Expertise Needed
• Compliance & Security

CONSIDERATIONS When Selecting a Business Model

• More Flexibility/Choice
• Can Tailor Solutions
• Scale
• Trust & Experience
• Expertise Not Required
• Compliance & Security
• 2-3 Solutions
• Scale
• Trust & Experience
• Expertise Not Required
• Compliance & Security

Different types of BUSINESS MODELS

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

Your Business Strategy Your Technology Partner(s)’ Capabilities Your Clients’ Needs

DEVELOP THE STRATEGY

Address key questions about… …and find the intersection YOUR BUSINESS STRATEGY YOUR CLIENTS’ NEEDS YOUR TECHNOLOGY PARTNER(S)’ CAPBILITIES

• 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

Model & Strategy

ADDRESS KEY QUESTIONS ABOUT YOUR BUSINESS

• # 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

Profile & Needs

ADDRESS KEY QUESTIONS ABOUT YOUR CLIENTS

STEP 3:

Understand key criteria for evaluating a potential benefits technology partner

Partner with an expert – let them handle the technology

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

Business Model

• 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

Software Features

• 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

Operating Model

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?