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The Evolution of Benefits and Payroll Integration:
Advancing Your Options
A CBIZ Benefits & Insurance Services Program
Presenters
Jim O’Connor
CBIZ Employee Services Organization
Chief Executive Officer
The Evolution of Benefits and Payroll ...
Agenda
• Marketplace and Industry Trends
– Benefits
– Human Capital Management
• Identifying Best Solutions
• CBIZ Employe...
Marketplace and
Industry Trends
The Evolution of Benefits and Payroll Integration4
The Current Employer Dilemma
• Organizations across the country just like yours are
dealing with the following issues ever...
Employee Benefits Trends – Costs
• How much is health spending expected to grow?
The Evolution of Benefits and Payroll Int...
Employee Benefits Trends – Self-Insurance
• Self-insurance…rapidly coming “down market”
• Reasons to consider…
– Participa...
Employee Benefits Trends – Self-Insurance
• Traditional Self-Insured Program
– “Bundled” (insurance carrier) or “unbundled...
Employee Benefits Trends – Self-Insurance
• “Level-Funded” Programs
– Legally, a self-insured plan
– Looks like a fully in...
Employee Benefits Trends – Self-Insurance
• Other considerations/risks with self-insurance
– Greater fiduciary responsibil...
Employee Benefits Trends – Self-Insurance
• “Dipping your toe in”…
– Combining High Deductible Health Plan (HDHP) with Hea...
Employee Benefits Trends – Wellbeing
• 60-75% of our country’s health care expenses are tied to
lifestyle/behavior risks t...
Employee Benefits Trends – Results
• Some form of “partial” self-insurance could very likely be
a more cost-effective stra...
Human Capital Management Trends
• Administrative burdens continue to increase
The Evolution of Benefits and Payroll Integr...
Human Capital Management Trends – ACA
The Evolution of Benefits and Payroll Integration15
Source:
 Payroll System
Purpose...
Human Capital Management Trends – Staff
• Doing more with less
– 2013 – 2014
• 1.3 HR professionals per 100 full-time empl...
Human Capital Management Trends – Tech
• 125 new vendors in past few years
– HR Insurance/Benefits
– Culture and Productiv...
Human Capital Management Trends – Vendors
• HR executives are generally satisfied but not often
enamored with the performa...
Benefits + Technology = Engagement
• 78% of workers base their acceptance or rejection of a
job offer in part on the benef...
Identifying Best Solutions
The Evolution of Benefits and Payroll Integration20
Identifying Best Solutions
• Endless consultants and vendors, but limited unified
solutions
21
?
?
?
?
The Evolution of Be...
Identifying Best Solutions – Where to Start?
• Self-identification – current and future state
– Small, medium, large organ...
Identifying Best Solutions – Where to Start?
• Map out or revisit 3- to 5-year plan
– Benefits, core and nonmedical, wellb...
Why CBIZ Developed
Employee Services
Organization
The Evolution of Benefits and Payroll Integration24
Evolution of an Industry
• CBIZ created CBIZ Employee Services Organization to
solve those issues and many more.
25 The Ev...
Evolution of an Industry
• Benefits expertise integrated with efficient HR
technology that simplifies the entire employee ...
Financial Stewardship
Efficiently managing your employee benefits costs
– Expertise in negotiations
– Buying power
– Creat...
Administrative Support
Making your HR team’s job easier
– Eliminate unnecessary paperwork
– Manage the employee life cycle...
Employee Experience
Engaging your employees and enhancing their
overall experience
– Manage your employee communications a...
CBIZ ESO
• Smart People. Smart Technology.
30 The Evolution of Benefits and Payroll Integration
The Evolution of Benefits and Payroll Integration31
?
QUESTIONS
?
??
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The Evolution of Benefits and Payroll Integration: Advancing Your Options

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Jim O'Connor and Wendra Johnson take part in our Business and Insurance Webinar Series 2016 where they discuss the evolution of benefits and payroll integration.

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The Evolution of Benefits and Payroll Integration: Advancing Your Options

  1. 1. The Evolution of Benefits and Payroll Integration: Advancing Your Options A CBIZ Benefits & Insurance Services Program
  2. 2. Presenters Jim O’Connor CBIZ Employee Services Organization Chief Executive Officer The Evolution of Benefits and Payroll Integration2 Wendra Johnson, SPHR, SHRM-SCP CBIZ Employee Services Organization Chief Business Development Officer
  3. 3. Agenda • Marketplace and Industry Trends – Benefits – Human Capital Management • Identifying Best Solutions • CBIZ Employee Services Organization – Bringing It All Together • Q&A The Evolution of Benefits and Payroll Integration3
  4. 4. Marketplace and Industry Trends The Evolution of Benefits and Payroll Integration4
  5. 5. The Current Employer Dilemma • Organizations across the country just like yours are dealing with the following issues every day: – Skyrocketing health care costs – Health care reform compliance challenges – Overwhelmed human resources teams The Evolution of Benefits and Payroll Integration5
  6. 6. Employee Benefits Trends – Costs • How much is health spending expected to grow? The Evolution of Benefits and Payroll Integration6
  7. 7. Employee Benefits Trends – Self-Insurance • Self-insurance…rapidly coming “down market” • Reasons to consider… – Participate in “good” claims experience – Risk mitigation through stop-loss insurance (specific and aggregate) – Cash-flow advantages – Plan design flexibility – Access to your plan data – Ability to manage your own risk (wellbeing) – Greater plan transparency The Evolution of Benefits and Payroll Integration7
  8. 8. Employee Benefits Trends – Self-Insurance • Traditional Self-Insured Program – “Bundled” (insurance carrier) or “unbundled” (third party administrator, various vendors) – Plan administration • Claims • Eligibility • Utilization management • Disease management • Rx formulary – Network access – Wellbeing programs – Stop-loss insurance • Specific • Aggregate • Reserves (“run-out,” “incurred but not reported”) The Evolution of Benefits and Payroll Integration8
  9. 9. Employee Benefits Trends – Self-Insurance • “Level-Funded” Programs – Legally, a self-insured plan – Looks like a fully insured plan – Pay “conventional equivalent” rates each month – Year-end accounting for potential “dividend” – Attractive to employer not comfortable with internal budgeting The Evolution of Benefits and Payroll Integration9
  10. 10. Employee Benefits Trends – Self-Insurance • Other considerations/risks with self-insurance – Greater fiduciary responsibility – Some additional administrative/financial management – More decision-making regarding vendor selection – More responsibility to “get engaged” in health risk management (wellbeing) – Potential increased financial risk if plan is not managed properly – What about joining a “captive”? The Evolution of Benefits and Payroll Integration10
  11. 11. Employee Benefits Trends – Self-Insurance • “Dipping your toe in”… – Combining High Deductible Health Plan (HDHP) with Health Reimbursement Arrangement (HRA) • Fully insured plan • HDHP lowers premium • Premium savings used to fund HRA • “Promise to pay” • Target HRA at specific coverage areas (i.e., hospitalization) • Limit the risk • More flexible and better cash management for the employer than Health Savings Accounts (HSA) The Evolution of Benefits and Payroll Integration11
  12. 12. Employee Benefits Trends – Wellbeing • 60-75% of our country’s health care expenses are tied to lifestyle/behavior risks that can be eliminated or reduced by personal decisions • Blood pressure, LDL cholesterol, glucose, triglycerides, body mass index (BMI), tobacco use • All directly relate to: – Heart disease – Stroke – Diabetes • Activity-based vs. results-based The Evolution of Benefits and Payroll Integration12
  13. 13. Employee Benefits Trends – Results • Some form of “partial” self-insurance could very likely be a more cost-effective strategy…coupled with the right wellbeing strategy! – “Traditional” approach with stop-loss insurance – “Level-funded” – HDHP with HRA The Evolution of Benefits and Payroll Integration13
  14. 14. Human Capital Management Trends • Administrative burdens continue to increase The Evolution of Benefits and Payroll Integration14
  15. 15. Human Capital Management Trends – ACA The Evolution of Benefits and Payroll Integration15 Source:  Payroll System Purpose:  Determine Applicable Large Employer (ALE) Status  Define Federal Employer Identification Numbers (FEINs) and How They Relate  Define Individual Employee Status  Provide Full-Time Equivalent Count  Track Through Measurement Periods Source (multiple possibilities):  Benefit Admin Systems  Insurance Carrier Systems  Human Resources Information Systems (HRIS)  Proprietary Client Files (e.g., Excel) Purpose:  Track Offers/Elections/Waivers  Plan and Dependent Data  Track Affordability  Track and Trigger Eligibility of Full- Time Employees
  16. 16. Human Capital Management Trends – Staff • Doing more with less – 2013 – 2014 • 1.3 HR professionals per 100 full-time employees – 2015 – 2016 • 1.1 HR professionals per 100 full-time employees The Evolution of Benefits and Payroll Integration16
  17. 17. Human Capital Management Trends – Tech • 125 new vendors in past few years – HR Insurance/Benefits – Culture and Productivity – Applicant Tracking – Recruitment Tools – Recruiting Marketplace and Search Platform – Operations Management – Employee Perks – Wellbeing The Evolution of Benefits and Payroll Integration17
  18. 18. Human Capital Management Trends – Vendors • HR executives are generally satisfied but not often enamored with the performance of contractors and vendors. – 66% of the HR executives reported that their most recent outsourcing initiative ‘‘met expectations’’ for improvements in service quality, with only 11% reporting that the contractor’s performance ‘‘exceeded expectations.’’ The Evolution of Benefits and Payroll Integration18
  19. 19. Benefits + Technology = Engagement • 78% of workers base their acceptance or rejection of a job offer in part on the benefits package • 33% of companies emphasize benefits to recruit highly skilled employees • 9% of companies say employees are very knowledge- able about their benefits • 5 generations are in the workforce today (all present unique employee communication and experience needs) The Evolution of Benefits and Payroll Integration19
  20. 20. Identifying Best Solutions The Evolution of Benefits and Payroll Integration20
  21. 21. Identifying Best Solutions • Endless consultants and vendors, but limited unified solutions 21 ? ? ? ? The Evolution of Benefits and Payroll Integration
  22. 22. Identifying Best Solutions – Where to Start? • Self-identification – current and future state – Small, medium, large organization – Growth mode, geo-dispersed, industry requirements • Workforce demographics – How will you communicate across generations – Need for self-service or vendor support • What challenges are most pressing or concerning – Too many systems and vendors to manage – Improving integration and workflow – Cybersecurity and protecting the data The Evolution of Benefits and Payroll Integration22
  23. 23. Identifying Best Solutions – Where to Start? • Map out or revisit 3- to 5-year plan – Benefits, core and nonmedical, wellbeing – Recruiting and onboarding – HRIS, payroll and reporting needs – Compliance – Additional resources or access to industry experts • Technology – System orientation (open architecture; one solution) – Integration and workflow options The Evolution of Benefits and Payroll Integration23
  24. 24. Why CBIZ Developed Employee Services Organization The Evolution of Benefits and Payroll Integration24
  25. 25. Evolution of an Industry • CBIZ created CBIZ Employee Services Organization to solve those issues and many more. 25 The Evolution of Benefits and Payroll Integration
  26. 26. Evolution of an Industry • Benefits expertise integrated with efficient HR technology that simplifies the entire employee life cycle. The Evolution of Benefits and Payroll Integration26 Financial stewardship Administrative support Employee experience
  27. 27. Financial Stewardship Efficiently managing your employee benefits costs – Expertise in negotiations – Buying power – Creative solutions – Wellbeing solutions 27 The Evolution of Benefits and Payroll Integration
  28. 28. Administrative Support Making your HR team’s job easier – Eliminate unnecessary paperwork – Manage the employee life cycle in one platform – Create action-oriented roadmaps to success – Utilize online enrollment 28 The Evolution of Benefits and Payroll Integration
  29. 29. Employee Experience Engaging your employees and enhancing their overall experience – Manage your employee communications and education – Integration of human-based and tech-based approaches – Claims advocacy for your employees – Wellbeing programs that address the “whole” person 29 The Evolution of Benefits and Payroll Integration
  30. 30. CBIZ ESO • Smart People. Smart Technology. 30 The Evolution of Benefits and Payroll Integration
  31. 31. The Evolution of Benefits and Payroll Integration31 ? QUESTIONS ? ??

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