Why an all-in-one HR technology solution isn’t the way to go
All-in-one HR technology solutions often seem like an attractive option because of their perceived convenience and cost savings—but are they really providing your clients with everything they need? In your experience, how have other all-in-one solutions worked for you?
Think about a first-aid kit: it typically includes a decent-quality selection of everything, but not a particularly great anything. If you get a papercut and need a bandage, the cheap one in the kit that won’t stick to your finger is useless.
Similarly, an all-in-one solution that encompasses a benefits module may say it can do everything your clients need, but they might find that certain features can’t handle their unique complexities. In that case, no matter how strong the benefits package design, employees and HR alike will be extremely frustrated with the benefits process.
We sometimes turn to bundles because they’re easy and we don’t know what we need at first. However, today’s HR ecosystem consists of specialized tools, and benefits administration technology is a major component you shouldn’t compromise on.
HR technology that is simply not designed for benefits
Oftentimes HCM and payroll providers offer technology to handle payroll, benefits, and a mix of other HR components. This is attractive to employers who are looking to create a streamlined approach and eliminate duplicate data entry(not to mention save money).
While the payroll aspect, for example, may work very well, the benefits administration functionality likely falls flat. This is because the system isn’t built around benefits – it’s built around payroll as the top priority. As a result, it can’t flex to fit the complexities of many benefits offerings and doesn’t offer an engaging employee experience.
HR then finds themselves using workarounds or performing manual data entry. This increases the risk of errors and ends up costing the employer even more time and money—the exact thing they wanted to avoid by using an all-in-one solution.
Client Support: Where expectations and reality clash
Employers may like the idea of the all-in-one solution because they believe that there’s one support team that can help them with all of their software issues. Unfortunately, this isn’t always the case. In fact, it usually never is.
Typically, employers won’t have one main point of contact for them to go to for all concerns. They’ll find that they’re usually dealing with different contacts (or worse – a ticketing system) for payroll than they are with benefits, so it’s not the cohesive service experience they were expecting. Instead, the inquiry will go from one place to the next until it finds the right team.
All-in-one HR technology leaves brokers out of the equation
When you endorse the use of an all-in-one payroll system, you could accidentally wind up cutting yourself out of the loop.
Like any business, these companies want to attract and retain customers—your clients—by offering additional services related to benefits and compliance, such as COBRA administration, dependent verification services, HSA/FSA/HRA administration, ACA reporting, retirement/financial services, and eventually…maybe even health insurance (as you’re well aware, industry disruption is already here and it will only continue to grow).
The good news is that you can protect and continue to grow your book of business. Your clients look to you first for these services. With knowledge and awareness of the market, alongside strong partnerships, you are in the perfect position to take a holistic approach that will allow you to continue acting as a trusted benefits advisor regardless of what disruption enters the landscape.
The promise of a true benefits solution
It’s possible to provide the best of benefits technology and the best of payroll and HCM without forcing your clients to compromise.
At ebm, our goal is to partner with and support you by providing best-of-breed benefits administration technology backed by a team of benefits technology experts.
Be the benefits expert and leave the technology to us. We’ll show you how the right systems combined with the right support can create a connected HR ecosystem more powerful than any all-in-one solution.
Learn how partnering with ebm for benefits technology can help you attract, win, and retain business.