Tech Tools Change the Game for HR Management & Employee Benefits
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Tech Tools Change the Game for HR Management & Employee Benefits

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Human Resource Management is more complex today than ever before. Mobile and web technologies will change the game for human resources management trying to communicate HR benefits to employees.

Human Resource Management is more complex today than ever before. Mobile and web technologies will change the game for human resources management trying to communicate HR benefits to employees.

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Tech Tools Change the Game for HR Management & Employee Benefits Tech Tools Change the Game for HR Management & Employee Benefits Document Transcript

  • Tech Tools: The Game Changer forEmployer-Sponsored Health-Care BenefitsCompanies are leveraging cost-effective technology to bring employeescloser to their benefits information and the power of benefits decision making.
  • This content provides practical information concerning the subject matter covered and is provided with the understanding that ADP is notrendering legal advice. While every effort is made to provide current and accurate information, the information is provided “as is” and madeavailable for informational purposes only, and is not a substitute for legal advice or your professional judgment. You should review yourspecific scenarios with experienced counsel for legal advice.
  • ContentsExecutive Summary 4Introduction 5Employee Benefits Communications 6Decision Support Tools 9Mobile Applications 13Web-Based Portals 16Conclusion 18Research Methodology 19About ADP 19About ADP Research Institute 19 3
  • Executive Summary Employers that offer company-sponsored employee health-care benefits are facing an upswing in multifaceted challenges. Among the most daunting is the necessity to control costs, while providing competitive benefits that will help to attract, retain, and motivate the workers needed for their businesses to survive and succeed. In addition, changes required under Health-Care Reform1 add a new level of complexity to employer-sponsored benefits. The ADP HR / Benefits Pulse Survey was conducted in July 2011 by the ADP Research Institute (a specialized group within ADP® that conducts studies on current topics of interest to Human Resources and payroll professionals.) The survey engaged 501 HR decision makers to determine how (and how much) employers are utilizing (and are planning to utilize) technology to provide employees with better access to benefits information and benefits engagement. Midsized companies (50-999 employees) and large employers (1,000 or more employees) participated in the online survey. Overall survey results reflect a need for employees – across organizations of all sizes – to receive improved access to benefits information and increased benefits decision-making capabilities. Technology – High-tech capabilities are increasingly enabling employees to manage and communicate benefits programs more efficiently and effectively than ever before. They are embodied in online benefits communications, decision support tools, mobile applications, and Web-based portals. Tech-assisted solutions are creating a fresh path toward increased employee satisfaction by empowering employees to not only gain a more comprehensive understanding of the value of their benefits, but also access them with greater convenience. Cost – Health-care costs continue to increase in excess of the rate of inflation – with the average annual cost of employer-provided family coverage now exceeding $15,000.2 New plan designs emphasizing employee engagement and increased consumerism, coupled with a revitalized focus on wellness, offer employers an opportunity to slow the rate of cost escalation – and still provide competitive plans. Health-Care Reform – The Affordable Care Act (ACA) is changing the employee benefits landscape. Employers will have to support significantly enhanced communications activities (i.e., Exchange Notifications, Auto-Enrollment, Uniform Summary of Benefits, etc.) along with enhanced decision support tools, enabling employees to make fully informed decisions. An overwhelming majority – more than 85% of HR decision makers – believe that the cost of providing employee benefits will increase as a result of the ACA.3 1 The Patient Protection and Affordability Care Act (P.L. 111-148) as amended by the Health Care and Education Reconciliation Act (P.L. 111-152) are referred to herein as the Affordable Care Act (ACA) or Health-Care Reform. 2 Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2011. 3 Source: ADP Pulse Survey of Employers, February 2011.4
  • IntroductionEmployer-sponsored benefits have become a vital component of an employee’s totalrewards and compensation. Robust competition for skilled talent is driving employersto maintain comprehensive benefits packages.Technology helps to increase the perceived value of those benefits by empoweringemployees with rapid, direct, and convenient access to benefits choices,instantaneous exchange of information, and the means to perform transactions thatincrease satisfaction.Key topical areas where employers can differentiate themselves include employeebenefits communications, and the use of decision support tools, mobile applications,and Web-based portals. 5
  • Importance of EEs Having a Full6 Understanding of Benefits Options Extremely / Very important 80% 83% 76% Importance of EEs Having a Full Understanding of Benefits Options 16% 24% 28% Extremely / Very important 80% 83% 76% Extremely important Importance of EEs Having a Full Understanding of Benefits Options Very important 16% 28% 24% Extremely / Very important Somewhat important 80% 83% 76% important Extremely Extremely important Importance of EEs Having a Full 60% Not very/not at 57% Understanding of Benefits Options Though all important Companies Large Companies Midsized Very important 55% 16% Not sure 24% benefits landscape. Extremely / Very important Somewhat important 80% 28% 83% 76% Very Extremely important 60% Not very/not at 57% important all important Very important 55% Importance of EEs Having a Full 20% 24% Understanding of Benefits Options 20% 16% Not sure 2% 17% 24% 3% 15% Somewhat important 1% 2% 28% 1% Extremely important 60% Extremely / Very important Not very/not at 80% 57% 83% 76% Total 50-99 100-999 81% all important Very important 55% 20% Not sure 2% 17% 15% 3% important Somewhat Somewhat important 1% 2% 1% 16% 24% 60% Not very/not at 28% 57% 61% Total 50-99 100-999 57% Extremely important all important 55% their benefits options, they 20% Not sure 2% 17% 15% 3% of large Very important 2% UNDERSTANDINg OF BENEFITS OPTIONS 1% 1% companies think it’s important Somewhat important estimate that just 58% actually Total 50-99 100-999 Not very/not IMPORTANCE OF EMPLOYEES HAvINg A FULL 60% have that level of understanding. Not very/not at at all important 57% 20% 2% 17% for employees to fully understand all important 55% 15% 3% 1% 2% 1% Not sure 17% 18% Total 50-99 100-999 1% 2% 1% Not sure 20% 2% 17% 15% 3% 1% 2% 1% Total 50-99 100-999 Extremely / Extremely / the next several years as both consumer-driven plans and Health-Care Reform change the don’t fully understand their current benefits – never mind the changes that are coming over employees to have a full understanding of their benefits options, they estimate that only 58% of their employees actually have that level of understanding. The balance (42%) of employees While the vast majority (81%) of large company HR decision makers believes it is important for very important 81% very important 80% Employee Benefits Communications
  • This lack of employee understanding 35%appears to correlate to the amount ofbenefits communications that employersprovide. In spite of the large amount that of largecompanies spend on health-care costs(in excess of $15,000 annually, per family, companies and 66% ofaccording to the Kaiser Family Foundation4), midsized firms don’tit was surprising that more than a third(35%) of large companies, and a significant have an employeemajority of midsized companies (66%), communications budgetresponded that they do not have an employeecommunications budget related to their related to benefits.benefits plan.COMPANIES WITH A BUDgET FOREMPLOYEE BENEFITS PLAN COMMUNICATIONS 2% Large Companies With a Budget for Empl Midsized 32% 66% Companies Yes Large No 57% 57% 35% 7% Companies Not SureThe good news is 57% of large companies and 32% of midsized companies responding to thesurvey do report having a budget for employee benefits communications. While close to half 35%of their budgets have remained the same year-over-year, about one-third of respondentsindicated significant or moderate budget increases from the previous year. 7% Total 1004 Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 1999-2011. 7
  • Importance of EEs Having a Full Importance of EEs Having a Full8 Understanding of Benefits Options Understanding of Benefits Options Extremely / Very important 80% 83% 76% Extremely / Very important 80% 83% 76% Importance of EEs Having a Full Understanding of Benefits Options Importance of EEs Having a Full Understanding of Benefits Options 16% 16% Extremely / Very important 80% 24% 83% Importance of EEs Having a Full 76% 24% 28% Extremely / Very important 80% 28% 83% 76% Understanding of Benefits Options Extremely important Extremely important Importance of EEs Having a Full Understanding of Benefits Options Very important Extremely / Very important 80% 83% 16% 76% Very important 24% Importance of EEs Having a Full 28% 16% Understanding of Benefits Options 24% Increase Somewhat important spending Extremely / Very important 80% 28% 83% 76% increased Somewhatimportant Extremely important 60% 60% Significantly Extremely important Not very/not at Importance of EEs Having a Full Not very/not at 57% 16% 57% Very important Understanding of Benefits Options Companies Large Companies Midsized Extremely / Very important all important 80% 24% 83% 55% 76% all important 55% IN PAST YEAR 28% Very important Extremely Not sure important Somewhatimportant Not sure 16% Extremely / Very important 24% 80% 28% 83% 76% 60% Somewhat important Spend 53% 53% Not very/not at Importance of EEs Having a Full IN NExT 1-2 YEARS Very important 57% 16% Extremely important 60% the same all important Not very/not at Understanding of Benefits Options 12% 12% 24% 55% 2% 2% 28% 57% increased all important 55% Moderately Very important Significantly / Somewhatimportant Extremely Not sure important 20% 20% 16% 2% 17% 15% 3% 60% 2% 17% 15% 3% 2% Not sure Extremely / Very important 24% 80% 2% 83% 28% 76% Not very/not at 1% 57% 1% Somewhat important 1% 1% Very important all important 21% 21% 55% Extremely important Midsized Companies moderately increased 33% 60% 7% 7% Total 50-99 100-999 Not very/not at 57% Total 50-99 100-999 spending Decrease Somewhat Not sure important 20% all important 55% 2% 17% 3% 60% Very important 16% 15% 20% Not very/not at 1% 2% 1% Not sure 2% 24% 17% 15% 28% 3% 57% No change all important 55% Somewhat important 1% 2% 1% Extremely important 60% 26% 26% Not sure Total 50-99 100-999 20% Not very/not at 2% 17% 3% 57% Total 50-99 100-999 15% all important Very important 55% 1% 2% 1% Not sure 20% Not sure 2% 17% 15% 3% Somewhat important 57% 1% 2% 1% Total 50-99 100-999 63% 20% 60% Not very/not at Significantly / Moderately increased 17% decreased 2% 3% 57% Moderately 15% 1% 2% 1% all important Total 50-99 55% 100-999 20% Not sure 2% 17% 15% 3% Significantly / Moderately increased Total 50-99 100-999 1% 2% 1% Total 50-99 100-999 17% 17% 20% decreased Communications in Year - Midsized 17% 33% 33% 2% 15% 3% Significantly CHANgE IN SPENDINg Spending on Employee Benefits 1% 2% 1% 13% 9% 6%10% 48% 48% Communications in Past Past Year - Midsized Total 50-99 100-999 Change in Spending on Employee Benefits Significantly / SPENDINg FOR EMPLOYEE BENEFITS PLAN COMMUNICATIONS 1% 1% 2% 2% Large Companies moderately increased 34% Change in ON EMPLOYEE BENEFITS COMMUNICATIONS effort that will be required under Health-Care Reform between now and 2014 alone. 32% 32% spent in the prior year – while only about one in five companies plan on increasing spending. Projected future investments in employee benefits communication do not give much hope that employee understanding of benefits will improve – or that employers are fully preparing for the Approximately 60% of both midsized and large companies plan on spending only what they have
  • Decision Support ToolsThe survey also assessed the use of decision support tools. These tools are typically softwareapplications (usually accessed through an organization’s Web portal – and increasingly viatablet-based mobile devices) that give employees the ability to compare and evaluate differenthealth-care plans in order to determine which plans best meet their needs.In a world of more differentiated plan choices, the ability to provide employees with effectivetools that simplify the process of choosing a benefits plan each year is obvious.ADP Pulse Survey findings indicate that among companies that are currently offering decisionsupport tools, they truly understandYes value of such tools. The vast majority of midsized and Yes the 46% 46%large companies believe that these tools increase employee understanding of benefits and their No No 57% 57%overall engagement. Not Sure Not SureDO DECISION SUPPORT TOOLS INCREASE UNDERSTANDINg? Not sure Not sure Not sure Not sure 9% 9% No No 3% 3% No No 6% 6% 48% 48% 3% 3% 35% 35% 7% 7% 5% 5% Total Total 1000-2499 1000-2499 Yes No 57% Not Sure Yes 88% Yes 88% Yes 91% Yes 91% Not sure Not sure Midsized Companies Large Companies 9% No 3% No 6% 3% 35%DO DECISION SUPPORT TOOLS INCREASE ENgAgEMENT? Not sure Not sure Not sure Not sure 7% No No 2% 2% 8% 8% 5% 5% Total 1 No No12%12% Yes 88% Yes 91% Yes No 57% Not Sure Yes 80% Yes 80% Yes 93% Yes 93% Not sure Not sure 9% No 3% No 6% Midsized Companies 3% Large Companies 35% 9 7%
  • Surprisingly though, seventy-two percent (72%) of midsized companies (50-999 employees) and fifty-one percent (51%) of large companies (1,000 employees or more) do not provide such tools. PROvIDE EMPLOYEES WITH DECISION SUPPORT TOOLS 3% Midsized 25% 72% Companies 5% Yes Large 44% 51% No 57% Companies 100-999 100-999 100-999 100-999 Not Sure 76% 16% 76% 16% 60% 76% 16% 60% 20% 60% 20% 76% 20% 16% 60% 20% Not sure Among the companies that do provide decision support tools, approximately half of BOTH large Not suUnderstanding of Benefits Options Understanding of Benefits Options Understanding of Benefits Options Understanding of Benefits Options No 3% 1% 3% 1% 3% 1% 3% 1% 9% 3% Importance of EEs Having a Full Importance of EEs Having a Full Importance of EEs Having a Full Importance of EEs Having a Full No (53%) and midsized companies (50%) offer these tools throughout the entire year, while about 6% 3% 35% one-quarter of large companies (23%) and one-third (33%) of midsized companies provide 50-99 50-99 50-99 50-99 83% 28% 83% 28% 55% 83% 28% 55% 15% 55% 15% 83% 15% 28% 55% 15% them ONLY during open enrollment and for qualified events. 7% 2% 2% 2% 2% Total WHEN DECISION SUPPORT TOOLS AvAILABLE Total Total Total Total 80% 24% 80% 24% 57% 80% 24% 57% 17% 57% 17% 80% 17% 24% 57% 17% Yes 88% Yes 91 Midsized 2% 1% 2% 1% 2% 1% 2% 1% 5% 12% 33% 50% Companies Extremely / Very important Extremely / Very important Extremely / Very important Extremely / Very important Somewhat important Somewhat important Somewhat important Somewhat important Extremely important Extremely important Extremely important Extremely important Not very/not at Not very/not at Not very/not at Not very/not at Very important Not important Very important Very important Large all important all important all important all important 7% 17% 23% 53% Companies Verysure Not sure Not sure Not sure Only during Only during Open enrollment / qualified life events open enrollment qualified life events only Entire year Despite recognizing the impact of decision support tools on employee engagement, 72% of midsized companies don’t offer such tools. 10
  • In general, the tools offered today provide valuable support with the most common toolsreported being a Flexible Spending Account (FSA) calculator, plan comparison chart, medicalcost calculator, and wellness incentive modeling.TYPES OF DECISION SUPPORT TOOLS OFFERED Types of Decision Support Tools Offered 74% Flexible Spending Account (FSA) calculator 77% 46% Plan comparison 71% 53% Medical cost calculators 64% 26% High deductible plan calculator allowing modeling with HSA or FSA 48% 49% Wellness incentive modeling 46% 12%Asset accumulation modeling for HSA to project post-retirement spending 29% 22% Tax modeling 14% Large employers 1% Midsized Companies seinapmoC dezisdiM Other Midsize employers 1% seinapmoC egraL Large Companies rehtO %1 erus toN %2 snoitacifiton repap %71It is unclear why more companies have not yet embraced these tools. / koobdnaH EE aiv - yllaunaM %13One hypothesis is that most current tools do not offer a high degree of sophistication – %45especially in the area of health coverage – that would enable employees to evaluate multiple latrop EE / etisbew etaroproc aiV %64variables when making decisions. For the most part, today’s tools focus primarily on cost,for example, helping employees rank plans by total cost (contributions plus an estimate of redivorp ecivres %16out-of-pocket costs). While this is a valuable aspect of these tools, the real value will be in ytrap-driht a hguorhT %74supporting additional areas that are important to each individual employee. seeyolpmE ot derevileD erA slooT troppuS noisiceD woH 11
  • One in five large companies that do not provide decision support tools plan to do so in the next couple of years. Of the midsized companies that currently do not provide decision support tools, only 13% plan to do so in the next two years. PLAN TO OFFER DECISION SUPPORT TOOLS OvER THE NExT 1-2 YEARS Midsized 13% 38% 49% Companies Yes Large 20% 49% 31% No 57% Companies Not Sure Cost and implementation time are the two most important criteria among companies choosing Not sure Not su decision support applications. So it is not surprising that outsourcers have gained a firm 9% No 3% No 6% foothold in the decision support tools marketplace – with their ability to leverage technology 3% 35% across multiple customers ensuring a lower total cost than if each employer were to implement their own solution. 7% Nearly half of midsized companies and almost two-thirds of large companies currently utilize a Total third-party service provider to deliver decision support tools to their employees. For companies picking an outsourced solution, ease of use and customer service rank right behind cost and implementation timing in driving the selection process. Yes 88% Yes 91 How Decision Support Tools Are Delivered to Employees HOW DECISION SUPPORT TOOLS ARE DELIvERED TO EMPLOYEES 47% Through a third-party service provider 61% 46% Via corporate website / EE portal 54% Manually - via EE Handbook / 31% paper notifications 17% Not sure 2% Midsized Companies seinapmoC dezisdiM Other 1% seinapmoC egraL Large Companies rehtO %1 Large Companies erus toN %2 Midsized Companies Editor’s Note: After assessing the projected needs of the marketplace, ADP recently acquired Asparity, a firm which delivers Web-based, decision support technology and advanced consumer behavioral data analytics. snoitacifiton repap %71 Asparity’s PlanSmartChoice brand of decision support tools provides decision support and data solutions that / koobdnaH EE aiv - yllaunaM %13 enable the employees of its clients to directly manage their health care and benefits. %45 latrop EE / etisbew etaroproc aiV12 %64 %16
  • Mobile ApplicationsThe ADP Pulse Survey asked companies It is clear that as mobile technology continuesabout the use of mobile applications to to expand and becomes an essential aspect ofcommunicate benefits information. Mobile doing business, companies will look for appstechnology offers users remote access that can support workplace needs – includingto email, Web browsers, and third-party Benefits and HR solutions.applications via smartphones, tabletcomputers / iPads®, laptops, and netbook ADP Pulse Survey findings revealed thatcomputers. mobile access to benefits information is important to a majority of respondents –The use of mobile applications has approximately 60% of HR decision makers.skyrocketed for both business and personal Yet, fewer than half of the companiesuse. According to the research firm surveyed currently provide mobile accessMarkEtSandMarkEtS, the total global (46% of large and 39% of midsizedmobile applications market is expected companies).to record a CAgR of 29.6% between 2009and 2014.5Furthermore, according to a recent reportfrom AMI Partners, smartphone ownershipamong midsized businesses in the UnitedStates is expected to grow by 40% within thenext 12 months. Tablet ownership is set toexpand by 85% during that time frame.6“The current generation of workers is never Despite the importance ofwithout their mobile devices. These workers mobile access to benefitsalready use mobile devices to email andbrowse the Web,” said Prashanth Motupalli, information — ranked highsurvey research analyst at AMI. “But they by 60% of respondentsare now looking for more sophisticatedbusiness applications while not in the office. — less than half of theThis opportunity means much more than companies surveyed offer it.spreadsheets and documents.”5 MARKETSANDMARKETS, World Mobile Applications Market: 2010 – 2015.6 AMI Partners, 2011 U.S. SMB Cloud Playbook - Strategic and Tactical gTM Planning guide. 13
  • 100- 100- 100- 100- 100- 76 16 76 16 76 60 16 76 60 20 16 76 60 16 20 60 20 60 20 20Understanding of Benefits Options Understanding of Benefits Options Understanding of Benefits Options Understanding of Benefits Options Understanding of Benefits Options 3% 1% 3% 1% 3% 1% 3% 1% 3% 1% Importance of EEs Having a Full Importance of EEs Having a Full Importance of EEs Having a Full Importance of EEs Having a Full Importance of EEs Having a Full 50-99 50-99 50-99 50-99 50-99 83% 28% 83% 28% 83% 55% 28% 83% 55% 15% 28% 83% 55% 28% 15% 55% 15% 55% 15% 15% IMPORTANCE OF PROvIDINg MOBILE ACCESS TO BENEFITS INFORMATION of Providing Mobil Importance 2% 2% 2% 2% 2% 6% 3% 5% Important 60% Total Total Total Total Total 80% 24% 80% 24% 80% 57% 24% 80% 57% 17% 24% 80% 57% 24% 17% 57% 17% 57% 17% 17% Extremely/Very Important 17% Midsized 14% 43% 29% Important 60% Companies Extremely / very important 17% 2% 1% 2% 1% 2% 1% 2% 1% 2% 1% 3% 14% 3% 1% Extremely important Extremely / Very important Extremely / Very important Extremely / Very important Extremely / Very important Extremely / Very important Somewhat important Somewhat important Somewhat important Somewhat important Somewhat important Extremely important Extremely important Extremely important Extremely important Extremely important Large Important 58%Large Companies With a access to Very important Employee Budget for 18% 38% 29% 11% Companies Extremely / very important 21% Not very/not at Not very/not at Not very/not at Not very/not at Not very/not at Very important Very important Very important Very important Very important Somewhat important 43% all important all important all important all important all important Not sure Not sure Not sure Not sure Not sure Not very important Yes Not at all important Total Extremely Very Somewhat Not very Not at all No 57% important important important important important Not sure Not sure 50-99 29% Not Sure 100-999 4% 6% EMPLOYEE ACCESS TO BENEFIT INFORMATION USINg MOBILE TECHNOLOgY Total 35% Large Companies With a Budget for Midsized 39% 49% 12% 7% Companies Total Important 58% Extremely/Very Important Total 21% Yes 1000-2499 Large 46% 46% 8% No 57% 3%2500-9999 Companies Not Sure 18% Extremely important 10K+ Very important The preferred mobile applications of HR / Benefits decision makers include:Somewhat important health-care 38% provider information, plan descriptions, benefits alerts and reminder capabilities, virtual Not very important insurance card information, and emergency contact information. Not at all important HR / Benefits decision makers estimate that, on average, about two out of five employees use Not sure 29% mobile technology in their regular workday activities and close to half anticipate the percentage of employees using mobile technology in their regular workday activities will increase over the next two years. 1% 11% Total This is consistent with International Data Corp. (IDC) estimates that the mobile workforce is growing at an annual rate of 15%.7 7 International Data Corp. (IDC), More Than One Billion Mobile Workers Worldwide by Year’s End, Feb. 2010. 14
  • Understanding of Benefits Options Extremely / Very important 80% 83% 76% Importance of EEs Having a Full Understanding of Benefits Options 16% 24% 28% Extremely / Very important 80% 83% 76% Extremely important Importance of EEs Having a Full Understanding of Benefits Options Very important 16% 24% Increase Somewhat important Extremely / Very important 80% 28% 83% 76% Extremely important Importance of EEs Having a Full 60% Not very/not at 57% Understanding of Benefits Options Companies Large Companies Midsized Companies Large Companies Midsized all important 55% Very important 16% Not sure 24% Extremely / Very important Somewhat important 80% 28% 83% 76% Extremely important 60% remain Not very/not at 57% the same all important Very important 55% 20% 16% 2% 17% 24% 15% 3% Not sure 2% 28% Somewhat important 1% 1% Extremely important 60% Not very/not at 57% all important Total 50-99 55% 100-999 Very important 52% 47% 20% 2% 17% Decrease Not sure 15% 3% Somewhat important 1% 2% 1% 60% Not very/not at 57% have not yet fully embraced mobile solutions. all important Total 50-99 55% 100-999 20% Not sure 2% 17% 15% 3% 1% 2% 1% Not sure 38% Total 50-99 100-999 42% 20% 2% 17% 46% 15% 3% 44% 1% 2% 1% Total 50-99 100-999 7% 1% 3% 8 vDC Research group, Inc. (vDC) / ADP Research Institute, Mobile HR Solutions: Connecting and Empowering Your Workforce, 2011. A vDC Research group, Inc. (vDC) / ADP Research Institute survey conducted in 20118 EMPLOYEES’ USE OF MOBILE TECHNOLOgY OvER THE NExT TWO YEARS found that over 70% of companies believe that mobile HR solutions will improve workforce However, as the use of mobile technology increases, so should the adoption of mobile apps. satisfaction, real-time decision making, and worker productivity. Still most companies surveyed MEAN % OF EMPLOYEES USE MOBILE TECHNOLOgY FOR WORKDAY ACTIvITIES15
  • Web-Based Portals Dr. vu-Thanh Nguyen, Research Analyst in AMI-Partners’ Singapore office, predicted “…PCs are becoming smaller to be more mobile…portable PCs – especially light-weight convertibles, hybrids, and large-screen slates – will continue to be the computer of choice for businesses compared to small-screen netbooks and tablets.”9 It is not surprising, therefore, that ADP Pulse Survey results show that Web-based portals have become one of the most ubiquitous technology tools used by companies and their employees today. Nearly nine out of 10 large companies (86%) and seven of 10 midsized companies (71%) have a Web-based portal that hosts employee benefits information. HAvE WEB-BASED PORTAL TO ACCESS BENEFITS INFORMATION Have Web-B Midsized 71% 29% Companies Large 86% 14% Yes 100-999 100-999 100-999 100-999 100-999 Companies 76% 16% 76% 16% 76% 60% 16% 76% 60% 20% 16% 76% 60% 20% 16% 60% 20% 60% 20% 20% NoUnderstanding of Benefits Options Understanding of Benefits Options Understanding of Benefits Options Understanding of Benefits Options Understanding of Benefits Options 3% 1% 3% 1% 3% 1% 3% 1% 3% 1% Importance of EEs Having a Full Importance of EEs Having a Full Importance of EEs Having a Full Importance of EEs Having a Full Importance of EEs Having a Full A vast majority (86%) of companies think it is important for employees to have 24/7 access to benefits information, yet only 72% of large companies and 66% of midsized companies provide 50-99 50-99 50-99 50-99 50-99 83% 28% 83% 28% 83% 55% 28% 83% 55% 15% 28% 83% 55% 28% 15% 55% 15% 55% 15% 15% this access. Importance of Providing Mobil 2% 2% 2% 2% 2% IMPORTANCE OF 24/7 BENEFIT ACCESS Important 60% Total Total Total Total Total 80% 24% 80% 24% 80% 57% 24% 80% 57% 17% 24% 80% 57% 24% 17% 57% 17% 57% 17% 17% Extremely/Very Important 17% 1% Midsized 14% 40% 31% 14% Important 86% 2% 1% 2% 1% 2% 1% 2% 1% 2% 1% 3% Companies Extremely / very important 54% 14% Extremely important Extremely / Very important Extremely / Very important Extremely / Very important Extremely / Very important Extremely / Very important 1% Somewhat important Somewhat important Somewhat important Somewhat important Somewhat important Extremely important Extremely important Extremely important Extremely important Extremely important Very important 2% Large Not very/not at Not very/not at Not very/not at Not very/not at Not very/not at Very important Very important Very important Very important Very important 16% 34% 36% 11% Important 86% important Somewhat 43% all important all important all important all important all important Companies Extremely / very important 50% Not sure Not sure Not sure Not sure Not sure Not very important Not at all important Extremely Very Somewhat Not very Not at all important important important important important Not sure Not sure 29% Yes No 4% 6% 9 AMI, global SMB Insights and gTM Strategy Consulting, http://www.ami-partners.com/index.php?target=news&mode=details&news_id=189 Total 16
  • 24-7 Web-Base24/7 WEB-BASED PORTAL ACCESS Midsized 66% 22% 12% Midsize Co Companies Yes Large 72% 21% 7% No Companies Not sure 66%Of the companies surveyed, about half employed a single portal for benefits, HR, and payrolluse and a like amount offer portal access utilizing multiple portals for each of those functionalareas. However, among companies that currently use multiple portals or have no Web-basedportal access, about seven out of 10 expressed an interest in a single Web portal solution. 22%Among those organizations that provide any variety of Web portal capability, 66% of large 12%and 59% of midsized companies allow employees to modify their personal information, mostcommonly, home address, annual benefits enrollment information, tax withholding information, Totaland life changes. Allow Employees toto Modify Personal Information Allow Employees Modify Personal InformationALLOW EMPLOYEES TO MODIFY PERSONAL Large Employers Large Employers Large Employers Large Employers INFORMATION Large Co Not sure Not sure Not sure Not sure 3% 3% 5% 5% 24-7 Web-Base Yes NoNo NoNo 72% Midsize Co 38% 38% 29% 29% No Not sure Yes No Yes 59% Yes 59% Yes 66% Yes 66% Not sure 21% 66% Midsized Companies Large Companies 7% TotalBy allowing employees direct access with the ability to modify their own data, HR decisionmakers surveyed see three benefits: 1) updated information is more accurate, 2) there are 22%fewer calls to the HR / Benefits department, and 3) there is an overall perception of a reducedadministrative burden within the organization. Additionally, among the companies surveyed, 12%approximately 57% of large companies and 44% of midsized companies are using a third-partyvendor to host their portal. Total 17
  • Conclusion • Employers share a major, complex business challenge – how to control the cost of employer-sponsored health-care benefits, while providing comprehensive, competitive employee benefits. • Health-Care Reform legislation will add to this challenge – and employers expect that costs will rise as a result of new requirements under the ACA. • Most survey respondents acknowledge that it is important for employees to have a full understanding of their benefits options. • While the use of decision support tools enhances an employee’s understanding of his or her personal benefits choices, relatively few respondents utilize these tools. • Of those that do, nearly half of midsized companies and almost two-thirds of large companies outsource that responsibility. • Although six out of 10 respondents indicated that mobile access to benefits information by employees is important, less than half of the surveyed companies currently utilize mobile applications for that purpose. • Web portals are already widely used to communicate and provide access to employee benefits. - However, companies offering Web-based portal access for benefits information are split between offering a single portal for all benefits and multiple portals for benefit, HR, and payroll tasks. - About half of respondents think 24/7 portal access for employees is either “extremely” or “very” important. • Most respondents expressed a high regard for the current capabilities and the potential that technology – online communications, decision support tools, mobile applications, and Web-based portals – provides to HR decision makers.18
  • Research MethodologyThe ADP Research Institute conducted this Employee Benefits survey in July 2011 among501 HR decision makers in U.S. enterprises. These include 251 participants from midsizedorganizations (those with 50-999 employees) and 250 from large organizations (those with1,000 or more employees).Statistically projectable samples of 251 midsized respondents were interviewed in each oftwo size groups: enterprises with 50-99, and 100-999 total U.S. employees; and 250 largerespondents were interviewed in each of three sizes: 1,000-2,499, 2,500-999, and 10,000or more total U.S. employees. The resulting data achieved statistical reliability at the 95%confidence level both overall and in each of the size groups.Respondents had to be key decision makers (evaluators, recommenders, final decisionmakers) for employee benefits policy or major benefits system or service purchases withintheir enterprises.Five out of every 10 (51%) midsized respondents and three in every 10 (31%) largerespondents were the actual heads of HR or employee benefits within their organizations.About ADPAutomatic Data Processing, Inc. (NASDAQ: ADP), with about $10 billion in revenuesand approximately 570,000 clients, is one of the world’s largest providers of businessoutsourcing solutions. Leveraging over 60 years of experience, ADP offers a wide range ofhuman resources, payroll, tax and benefits administration solutions from a single source.ADP’s easy-to-use solutions for employers provide superior value to companies of alltypes and sizes. ADP is also a leading provider of integrated computing solutions to auto,truck, motorcycle, marine, recreational vehicle, and heavy equipment dealers throughoutthe world. Reach us at 1.800.225.5237 or visit the company’s website at www.ADP.com.About ADP Research InstituteThe ADP Research Institute is a specialized group within ADP that conducts studies oncurrent topics of interest to Human Resources and payroll professionals. 19
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