· Will the HR information technology be able to grow and scale with the organization? HR
should assess the technology’s ability to grow as the company brings on new employees,
offices, benefits changes, and rules. HR should ask about the thresholds for each of these
elements.
· Is the HR information technology software able to integrate with other systems? Payroll
and other functions often share much of the same information as benefits management. HR
can obtain greater efficiencies when data and other employee information entered into one
system can be shared with another system.
· Who is responsible for implementing, or building, the solution? What level of training is
involved? Some solutions require the client to be very involved with the initial
implementation, which can be overwhelming for already busy HR administrators.
HR should have a clear understanding of the level of training and technical expertise that
will be required and the amount of time expected. Questioning solution providers on this
topic can provide insight into subtle areas that might initially appear simple, yet involve
significant technological expertise. HR can then determine specific tasks that may be so
cumbersome as to realistically impede completion, potentially reducing HR information
technology value and ROI.
· If training is involved, is there a charge? Costs of training should also be assessed -
including time away and travel expenses for off-site travel. HR needs to become aware of all
hard and soft costs involved in the HR information technology adoption.
· Who will own the data? The answer to this question should be the Human Resources
organization. Companies should be able to transport their data to any Application Service
Provider (ASP). If the data resides on a carrier’s proprietary server, the company may
sometimes be charged additional fees should it switch carriers.
· What types of maintenance and upkeep are required? When software is installed on a
company’s on-site workstations or servers, regular updates to that technology are often
required and may be cumbersome to plan for and manage. Updates to HR information
technology are often made automatically with software available online through an
Application Service Provider (ASP) or Software as a Service (SaaS) model.
· What security measures are built into the HR information technology? If the software is
available online, through an ASP or SaaS model, the provider should offer daily backups,
backup servers, and added protective layers. Additional systems and procedures should be in
place to safeguard information from being lost or accessed by unauthorized personnel. HR,
in consultation with other managers, should have exclusive authority to decide who will be
allowed access to the HR information technology and to what degree.
· Will employees be able to enroll in benefits plans and make changes in real-time to their
personal data and plan choices? Employee access should be a given, considering the
widespread, general access to computers; 70% of the population has Internet access at home.
Employee self-service provides huge potential to save time and money. A good self-service
system will guide employees smoothly through entering information about themselves and
their dependents.
The system should clearly present the plans available and enable employees to make
selections at their convenience, simplifying these actions throughout the process with
wizards. Employees should also be able to add dependents and change information as
necessary, 24 hours a day, seven days a week.
These are additional questions to answer as you assess your organization’s Human Resources
information technology needs. Here is the first half of the questions.
· Will the technology provide Human Resources with the authority to decide who will be
allowed access and to what degree? Along the same vein of providing employee access, the
technology should give HR the final say. HR should have the authority to approve all data
before it is transmitted to carriers, and should also determine the extent to which employees
and others have access.
· What types of reporting capabilities are available from the HR information technology?
Reporting technology should offer multiple views and formats (spreadsheet, PDF, html), big
picture assessment and the ability to drill down to enhance decision-making. HR should be
able to assess, at any time, enrollments in specific plans, outstanding actions, and changes in
employee demographic information in relation to benefits and other employee data.
· Does the software offer specific features to help HR save time? Depending on its own
departmental needs, HR might want to inquire about the technology’s ability to process
information in batches, manage notifications and billing for COBRA policies, provide selfbilling
and bill reconciliation tools, and specific reporting.
· Does the software offer specific features to help HR communicate better with employees?
Some programs give HR the flexibility to communicate with employees on a number of
levels – via mass email, electronic “bulletin boards,” and by specific filter criteria (such as
location, department, insurance plans, enrollment status, retirement status, and others)
through the HR information technology system. Having a number of means to communicate
can further automate processes and help HR to better target messages.
· Does the HR information technology system provide a means of checks and balances? In
addition to enabling HR to approve transactions, many HR information technology systems
also provide capabilities for HR to serve as the gatekeeper in auditing carrier billings to
make sure they agree with the data in the system. This can:
–ensure the accuracy of carrier invoices,
–save time and money,
–assist in the timely delivery of employee enrollments, and
–enhance confirmation of eligibility when employees go for care.
· How will information be exchanged with carriers? And, who will be responsible for this
interaction? Integration of the HR information technology system should be judged not only
by the number of carriers with which the software has relationships, but by the type of
connection that it enables. Ensuring successful interaction with carriers through a benefits
management software requires many steps, including:
–gathering initial implementation data census;
–setting up initial integration for the ongoing information exchange;
–coordinating daily or weekly interaction to make sure data is received and accurately
applied;
–reviewing ongoing updates;
–ensuring carrier requirements for enrollment are being met in compliance with regulators;
and
–fostering a proactive relationship with each carrier to improve the relationship of data
exchange.
Knowing who is responsible for each task is essential to fully understanding a product
offering. Each software provider will offer a different level of integration in providing some,
to all, of the tasks outlined above. HR should look to work with vendors that demonstrate
strong, ongoing, seamless relationships with the company’s selected carriers.
Many providers enable transmission of a generic ANSI 834 file, which may or may not be
accepted by the carrier, a factor often influenced by the size of the group. Managers should
look for providers that offer clean, validated transfers (ensuring the eligibility of the
transaction), customized to each carrier’s needs to avoid issues. They should also look to
providers that have a dedicated EDI (Electronic Data Interchange) department to interact
with the carrier’s own, specific transfer language.
· What level of customer service is provided? Is there an additional charge for service? HR
should determine the level of access to “help” that is provided and what constitutes customer
service – online help via a database, online chat, email support, conversations with a live
person, or a combination thereof. Given the sensitivity of benefits and other HR information,
managers should expect a response to inquiries within 24 hours from a direct contact that
can help.
· What is the cost of the HR information technology system and does it outweigh the
benefits? HR should assess the complete cost of the HR information technology system,
including all annual, monthly, and one-time charges, alongside the benefits provided. A
slightly more expensive system may more than pay for the difference with features that
enable employees to maintain their own records and offer greater convenience, time savings,
and accuracy. These factors should be considered and weighed in selecting an HR
information technology system.