3 reasons why your broker and HR tech provider should be the same
HR reps, and especially one-person HR shops, wear multiple hats that can change depending on the hour, week and time of year. The functions of the department range from accounting, communications and employee relations to recruiting, advising and compliance.
Not only are they juggling multiple employees with multiple issues, but multiple providers specializing in each facet of HR. That means they oversee myriad vendors, from time clock and payroll providers to benefits brokers to talent acquisition software and talent management software. With so many providers and so little time to manage each of them, doesn’t it make sense to get all of your HR needs from one place?
Current core HR systems are too complex and will result in integrated experiences that contribute to the employee journey. The integrated experience doesn’t have to wait for the industry to figure it out.
One way to create a more integrated work experience is by getting your HR technology and benefits from the same place. Here are three reasons why it’s a good idea.
Efficiency and productivity. How many times per day do employees switch platforms or systems to accomplish only one task, or just part of one task? Multiple providers mean multiple platforms. The time it takes them to find the information they need in an email and switch to their time-tracking tool is valuable administrative time that could be used on work that actually makes the organization money.
Even a recent report by The Verge about Amazon’s system for tracking employee productivity confirms that some businesses are concerned with employee productivity and making sure time is used valuably. If an employee needs to make a minor change like updating their new address, this process could take up a significant amount of time to change it with separate payroll, benefits or other technology providers.
It’s not just about saving employees time, it’s about saving time for HR professionals too. Dealing with multiple vendors from recruiting to talent management to payroll to benefits just to get an employee onboarded isn’t efficient. Time can be added back to their day by having one provider that handles everything, from hiring to managing to retaining employees.
Money. Of course time is money, but when it comes to benefits, employees appreciate any dollar they can save. The Milliman Medical Index found that employee contributions to their healthcare plans increased by 5.9% in 2018, and the employer portion of the expense increased 3.5%.
Brokers typically receive a commission from the insurance provider based on the premiums generated. Instead of pocketing the commissions, a provider who offers both insurance and technology could use those funds to reinvest in their technology. It also can make an end-to-end technology platform more affordable to the HR teams who need it most but have been unable to justify the cost.
Selecting a provider that offers not only an all-in-one HR tech platform but also serves as your benefits broker can help manage costs that organizations can pass on to their employees. CFOs will see a return on investment. HR representatives often add a benefits expert to their teams to help with the sometimes complex healthcare system, eliminating the need for third-party administrators.
Decreasing costs can raise the employer contribution, offering a competitive compensation and benefits package that attracts and retains quality talent.
Accountability and compliance. Having one provider means one point of contact, making it easier to track down one phone number than reaching out to multiple vendors to solve a multifaceted problem.
The cost of benefits is deducted from payroll, information from recruiting can be used to onboard a new employee and tracking performance is easier when you can see the overall employee story. A bundled platform and benefits broker simplifies accountability and compliance, and means important information isn’t strewn across multiple providers.
With streamlined accountability also comes an ease to federal, state and local compliance.
Four states and numerous municipalities and counties enacted some form of the “ban the box” law, where employers can’t ask about previous criminal convictions from a job applicant during various points in the hiring process. With many organizations spanning the U.S. and allowing employees to work from home or remotely, it can be difficult to keep up with compliance in areas beyond the corporate headquarters.
Through one provider, HR reps don’t have to juggle when each vendor projects to meet compliance standards.
The 2019 Gartner Future of HR report found that improving operational excellence and optimizing costs were in the top five corporate objectives according to HR leaders. By sourcing a combined HR technology provider and benefits broker, organizations can improve productivity, rein in costs and meet compliance standards, contributing to a better overall employee experience and HR experience.