The brave new world of online benefit administration

(Read an article, "Recession doesn't diminish enthusiasm for employee benefits.")

One-stop system
While major insurance companies provide online enrollment and support, if an employer has benefits with multiple carriers, this is far from ideal. It means entering the same employee information multiple times and continually moving back and forth between various web sites and software applications. An increasing number of agents are offering their clients a personalized benefits web site for managing all benefits and employee communication. This all-inclusive web site can be linked from a corporate intranet site and provide significant time-saving processes.

For example, as renewal deadlines approach, HR staff typically complete a census sheet listing all employees with dates of birth and other required data. A fully functioning online system can generate a census report that is always current, saving valuable time for the employer and agent. The census report reflects real-time information, including which employees are covered for what benefits and how the cost of those benefits is split between employer/employee contributions.

• Accuracy: In the old days, employees completed paper applications for each participating insurance company. Eventually, larger companies started using telephonic enrollment. With today's technology, online services are available to employers of all sizes. Basic information is entered once and used for multiple applications, saving time and eliminating legibility errors.
• Efficiency: In today's economy, HR professionals are taking on more responsibilities than ever before, with employee benefits' paperwork viewed as a dreaded duty. Enrolling people, processing changes, reconciling invoices, and dealing with claims issues takes time away from functions that generate revenue. With a comprehensive benefits web site, HR staff can refer employees to online help and processes, reducing administrative time.
• Knowledge is Power: Data entered into a system and made available for a multiplicity of reports can be extremely valuable and timely in performing evaluations and making projections. Many programs allow data to be exported into a spreadsheet format for further customizing. For example, most employers allocate specific costs to departments or locations. This process is enormously simplified through automation.
• Hidden Paycheck: Employees are rarely aware of the true costs an employer bears for a total compensation package. Employer contributions for benefits, value of PTO, vacation and holidays, FICA, Social Security contributions, workers' compensation, retirement programs, and other benefits are rarely quantified and communicated to employees. This is a valuable reporting feature available in many systems and can be integrated easily into annual review meetings with employees, or as a mass distribution at the end of each year or during an open-enrollment period.
• Forms/Document Access: Any type of form or document can be loaded into most HR programs for employee access. With this functionality, the company web site can serve as a cost-effective resource center for such items as employee handbooks, summary plan documents, expense reports, claim forms, PTO requests — any materials that employees use or are required to be furnished.
• Hyperlinks: Hyperlinks afford employees quick access to insurance company web sites for viewing provider directories, claims, and wellness program materials. HSA and retirement plan providers, industry associations, and other web sites relevant to administrative staff and/or employees also can be linked.
• E Security and Privacy: Systems are typically set up with multiple access levels based on a person's need for specific data. Employees can only access their own personal information, whereas HR administrators, CFOs, and other officers typically have access to more global data and reports. The more sophisticated systems offer multiple options for tailoring access to meet the specific needs for any given employer. Additionally, system administrators can often track who is using the system and how frequently they are signing on.

"Human touch" still matters
A caveat: While these programs do an excellent job of streamlining the enrollment process and recording real-time enrollment data, they do little to help employees make informed benefit elections. Technology should not be a substitute for face-to-face conversations and ongoing communication.

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David A. Gentry, M.Ed, CFP is the COO for Fringe Benefit Plans, Inc., in Winter Park and a past state president of the Florida Association of Health Underwriters. He may be reached at 407-862-5900 or DaveG@FBPlans.com; www.FringeBenefitPlans.com.