Eliminating silos: How TPA integration removes friction
A lack of centralization that comes with outsourcing HR functions culminates in wasted resources and a dissatisfied workforce.
Few, if any, employers would dispute the value of integrating disparate human resources (HR) technology systems within one centralized service. Whether improving how HR decisions are made, generating helpful workforce analytics or creating a seamless experience for employees and management, integrated systems further HR’s overall mission of serving the needs of both employers and employees.
Employers invest a considerable amount of time and money promoting their benefits and encouraging employees to use them. Unfortunately, only marginal consideration is given to how employees are accessing those benefits. Corporate health and wellness programs, for example, are often very comprehensive, but sadly, one of the least used employee benefits. These programs are typically composed of services such as wellness assessments, screenings, chronic condition management, telehealth, health coaching and more.
Related: 4 ways to drive greater employee engagement in wellness programs
While these services may make up an important part of an employer’s health insurance and benefits, they are not offered by one provider, much less located within the same platform. Instead, they are often divided among multiple providers with many different mobile apps, websites and benefits guides. It is then left to the employee to determine which service is right for them and which channel is most convenient for them to gain access.
Since most benefits are inherently siloed, experience has shown that employees will not readily take advantage of or recognize any value if it is difficult to access or use their benefits. This lack of centralization goes beyond health benefits and culminates in wasted resources and a dissatisfied workforce, because employees don’t realize the true value of their total compensation. Instead of viewing their benefits as a positive element of their daily life, it becomes yet another chore.
For many years, employers have outsourced the majority of their HR technologies and added many partners as they add services. However, these large Human Resource Information System (HRIS) or Human Capital management (HCM) platform providers, insurance carriers and payroll providers are slow to expand their old established platforms and do not integrate well with other systems. The silver lining for employers is that they can make an active decision to go in a new direction, such as leveraging benefits enrollment platforms and on-boarding platforms which are making inroads to deliver a better user experience.
SHRM indicated in its “Demystifying Technology in the Workplace” report from earlier this year that the use of technology will be critical in how employers attract, retain and equip talented employees. If employers keep utilizing services that do not allow for integrations, then they risk losing out in the long-run as systems fail to keep up with innovation. To better engage with employees and their families, employers need to understand that a progression in technology is crucial, and properly engaging a multi-generational workforce requires easy accessibility and clear central channels of communication.
HR services providers should develop and implement their solutions with third-party integrations as a strategic priority. Opening up internal technology such as the Human Capital Management (HCM) Platform, the HRIS, the financial services platform and more to users will allow employers to bring into all relevant services. This will also eliminate siloed channels and create a better user experience for employees and their families, while helping employers reap the full return on investment from their benefits.
As MetLife recently concluded in their Employee Benefit Trends 2019 Study, it is important to engage and communicate to employees about their benefits as if they are customers. By strategizing and providing a clear integrated view of all services and benefits, employers can help employees realize the true value of their benefits and leverage them to optimize their holistic well-being.
The current state of siloed HR services is simply a result of how rapidly technology has evolved and advanced over time. While it is easy to point fingers or attack vendors, the only path forward as an industry is through open interfaces, data exchange, and collaboration.
Eliminating silos completely is a lofty goal for which the HR industry should strive; however, it is one that should not be taken lightly. This effort will require a great deal of strategic planning and input from all industry stakeholders to create the best path forward. At the end of the day, the industry will benefit from a wealth of new resources, and employers can focus on creating the best benefits package possible for employees and their families. This will enable employees to understand, sign up and actually use their benefits on an easy, ongoing basis.
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