Most brokers recognize the need to provide an online enrollment solution for clients, and many have already adopted and implemented a system.
But how do you know if you have the right benefits and HR system? There are a few things to consider and red flags to watch out for, and now is the time to make that evaluation.
To maximize efficiency during the busy open enrollment season, you will want a functional system in place prior to the fourth quarter. If you're experiencing issues with your system, they are unlikely to resolve if you don't action.
Having enough time to make that determination and take any necessary steps will ensure you recognize the most return on your investment.
With that in mind, here are three benefits tech “red flags” to review.
Support concerns
Apple is regarded as having some of the easiest-to-use products on the planet. Anyone who has been to an Apple store knows that the company also regards personal support as critical for its users to be as successful as they can be while using Apple products. That in mind, what kind of support are you getting from your HR and benefits technology vendor?
Do you have a dedicated support contact? When you reach out for support, what kind of turnaround do you receive in response to help resolve your question? Do you get help with prospect demos?
Open enrollment is typically a support-heavy time for brokers. If the support you're receiving from your vendor is subpar, you may experience additional challenges in the fourth quarter.
Lack of user growth or product use
There is usually a learning curve period with any new technology platform. Many brokers adopt a system at the request of a particular group or a few key groups, and it's normal to prioritize rolling out the system with these organizations first.
But once you're up and operational with the system, you should see consistent user growth by bringing your other groups online. Similarly, you will want to see expanded use of the system by your groups as your agency and their administrators become more familiar with the platform's full functionality.
While you might begin with just benefits enrollment, learning to use the tool's other HR features will both solve administrative headaches and create stickiness with clients.
If your user growth has stagnated and you don't see expanded system functionality in your future, this is something you will want to address before continuing a partnership with the vendor.
Costs rising unsustainably
If your user growth is strong, you might be experiencing another red flag – unsustainable price increases. Some HR and benefits systems charge on a per-employee per-month basis, which means as your user growth rises, so do your costs.
This puts brokers in a position of having to choose between efficiency gains and more sustainable pricing. In general, pricing based on user growth can actually be a disincentive for brokers to maximize the system's functionality.
Reviewing your system now, in the slower season before the fourth quarter, will give you enough time to address any “red flags” you might uncover, and determine whether your system is the right one for your agency and your clients. If it isn't, consider making a switch now, so that your agency can be fully ramped up with a new vendor prior to open enrollment.
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