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Your Resource for HR Technology BenefitTechnologyResourcesLLC
HRTechnologyKeyInsightsforMid-MarketEmployers
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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
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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…
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4 4 PROVIDERS – THERE ARE OVER 400 IN THE MARKETPLACE
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5 5 HR Technology Trends in 2016
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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
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7 7 KEY INSIGHTS
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8 8 KEY COMPLIANCE DATES
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9 9 ACA - EMPLOYERS NEEDED TOOLS TO COMPLY
• Trackinghoursandeligibilityfrommul6pledatasources
• YearEndFormsandRepor6ng
-Both?
• Howhasitgonesofarwithyour2015repor6ng?
• Whatop6onsdoyouhavetoimproverepor6ngfor2016?
• PayrollProvider?
• BenefitsAdministra6onSolu6on—s6llonpaper?
• StandAloneACATool?
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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
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11 11 ACA OUTLOOK
ACAServiceProviders:• Slowtorespondtoclients• Dataandprocessesarefragmented• Notallaredeterminingthecodesforlines14and16• Over-commitandunder-deliver• Challengedbycon6nuechangesbyIRS• Changingtheirfees
• Wehaveheard,“theformsaregoingoutwhethertheyarecorrectornot!”
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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
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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)
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14 14 ACA OUTLOOK
GeneralObservaJons:• TheIRSwillbeoverwhelmed(newdatates6ngsystem)• Capacitywillcon6nuetobestretched• Somepayrollprovidersarerequiringaddi6onalmodules • Thepoolofviableproviderswillshrink
• Somewillfailandleavethemarket• Otherswillbepurchased/acquired
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15 15
v LotsofNewTechnologyinthemarket• NewProvidersintheHRTechnologySpace• Algorithmstomakebigdatauseful(thinkpersonalFacebooksupdateslendingtorecrui6ngefforts)
• EmployeeEngagementso]ware• PerformanceManagement
• NewUserInterfacerollouts• Mobilecapabili6es
TECHNOLOGY IN TODAY’S MARKET
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• HighAc6vityLevels—employersaremovingtomorerobusttechnology• HRTechnologyisfinallyimpac6ngthebo`omline• ACAcompliancehasbeenpainfulandcanbecostly• BasedonstudiesandresearchEmployerswant:
Bottom Line = Employers Want MORE Automation!
TECHNOLOGY IN TODAY’S MARKET
• PaperlessOnboarding• OnlineBenefitsAdministra6on• HRISComplianceandTracking• MobileCapabili6es
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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.
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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
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19 19 HOW TO HAVE SUCCESS WITH TECHNOLOGY
• ConsultwithStrategicPartnersforassistance—thisisabigexpenditure• Doyourowndiscoverybeforejumpingintoaproject• Determinewhatsuccesslookslikeattheend—SetProperExpectaJons!
• Includeallstakeholdersinkeydiscussionsfromthebeginning• Tweakthingsalongthewayandupdateyour6melineasneeded
• Don’trush—besureyouhavegivenyourselvesareasonable6melineandallowfortes6ngandmoretes6ng
• TESTTESTTEST• Measureresultstodetermineifitwasasuccessfulimplementa6on.• Haveastrongcommunica6oncampaigntoeducatemanagersandemployees
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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.
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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.
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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?
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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
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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.
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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
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