Beware: all-in-one benefits admin solutions cut advisors out of the equation

As the saying goes, “convenience is king.” Convenience is a great selling point when it comes to employee benefits administration, and any solution that touts convenience gets our attention, but benefits advisors and employers alike have to be wary. 

There are countless benefits technology solutions on the market. Unfortunately, many of them fail to deliver streamlined ben admin processes. Among these systems are all-in-one solutions, which are often provided by HCM and payroll providers. Not only can’t these systems simplify ben admin, but advisors who endorse these systems may wind up cutting themselves out of the equation.

The pitfalls of all-in-one technology

A system that offers a mix of many aspects of HR under one hood sounds very appealing. And once teams begin using the system, they may find that some components work really well; however, the other components often pale in comparison. You can’t compromise other HR components for one that works really well — and you especially can’t compromise on benefits administration technology.

All-in-one technology may claim their benefits module can handle everything employers need, but teams quickly realize that certain features within the benefits module can’t handle their unique complexities, no matter how well-designed the benefits package.

HR teams will find themselves performing manual data entry, which is not only a time-consuming process, but can increase the risk of human error. HR professionals will spend more time on administrative tasks while running the risk of making costly mistakes — the exact problems that employers thought this platform would solve.

Client service: when expectations meet reality

Employers may like the idea of an all-in-one solution because they believe they’ll have one point of contact for software issues, but this is usually not the case. If employers have issues, they’ll find themselves reaching out to different points of contact (or worse, a ticketing system).

Client service won’t be the cohesive experience that employers were expecting; their inquiries will bounce around from one team to the next until it finds the right one.

All-in-one tech cuts advisors out of the equation

Benefits advisors who endorse all-in-one solutions may wind up cutting themselves out of the equation.

As with any business, all-in-one providers want to attract and retain clientele. These companies will try to attract and retain business (your clients) by offering additional services related to benefits and compliance, such as COBRA, HSA/FSA/HRA administration, and ACA reporting.

Despite industry disruption, your clients look to you first for these kinds of services. You can continue to grow and protect your book of business by staying aware and knowledgeable about the market. With knowledge and awareness, and alongside strong partnerships, you can position yourself for success. This allows you to take a holistic approach that keeps you acting as a strategic advisor, avoiding industry disruption altogether.

A true benefits solution

All-in-one solutions sound like the only shot at convenience. But here’s the good news: You can get the best of benefits, payroll, and HCM without having to compromise. 

The most effective technology strategies deploy best-of-breed systems across their HR tech stack, relying on connectivity (EDI, API, or SSO) to cultivate a synchronized, harmonious HR ecosystem. In other words, data is sent automatically throughout the tech stack, promoting streamlined workflows and reducing the risk of human error.

In the context of benefits administration, a best-of-breed platform creates a web-based system of record that tracks and manages on-going employee benefit changes. Then, data is automatically sent to carriers and other systems across the HR ecosystem, where necessary. Take payroll, for example. Anytime there is a change in coverage, that data is sent to the payroll system for the appropriate deductions to be made.

This is what a true benefits solution looks like. While an all-in-one solution sounds like it would be able to do all of this on one centralized platform, the truth is they simply can’t. Teams will find themselves performing manual data entry, which wastes hours of time that could otherwise be spent focusing on more strategic initiatives.

By advocating for solid benefits administration platforms, benefits advisors can connect their clients to streamlined processes, and help HR teams get more time back in their days.