Clients calling “Mayday”?

Design a benefits technology strategy

to answer their distress call

Scott Evans, benefitexpress

Bruce ShutanContributing Editor

Employee Benefits News/Advisor

Moderator

Scott EvansChief Product Officer

benefitexpress

Presenter

YOUR CAPTAINS

Your itinerary

• How to assess your readiness: learn and

identify the benefits administration

model that is right for you

• How to create a benefits technology

strategy for your business which is seen

as an imperative – not a “value add” – by

your clients

• Key criteria for evaluating potential

benefits technology partners

Which is having the greatest impact on the use of benefits technology among your clients?

☐Compliance (e.g.; DOL, ACA, FMLA, Paid Family Leave)

☐Demographic shifts for clients

☐Consumer expectations evolving

☐Need for greater efficiency / cost-control

☐New technologies, cloud-based software

SIGNS OF MATURITY

• More online than paper

• Move from transactions to strategy

• Improved communication methods

• Ben Admin for everyone

FUTURE OUTLOOK

• Pure defined contribution is coming

• More mobile

• 365 engagement

• Better integration

Reading the current benefit administration tides

When it comes to benefits administration, many employers are calling “mayday”

More employers are

Increasing Ben Admin

outsourcing

More employers

are increasing

Ben Admin

outsourcing

Those outsourcing

are expanding

the scope

2014

2 in 3Employers

2017

3 in 4Employers

Top Mentions<100

Employees

100-999

Employees

1,000+

Employees

Increased number of

outsourcing vendors since 201412% 24% 35%

Average number of vendors used 2 3 5

Source: Guardian 4th Workplace Benefits Study, 2017

Benefits administration platform

Payroll integration

Enrollment services

ACA compliance capabilities

HR management capabilities

Quoting

Renewal support

Marketing/sales support

Support CDHP, defined contribution

Client service support

64%

53%

53%

51%

49%

29%

26%

26%

21%

17%

And so are brokers… Areas where brokers need more support

What does this mean for you?

• Technology will continue to evolve & play a more

intricate role in our lives and businesses.

• As newer generations move into the workforce, start businesses

or move into decision making roles, agencies will need to:

✓ Adapt

✓ Learn

✓ Innovate

But most importantly,

✓ Develop a benefits technology solution to

answer your client’s distress call

In what ways does technology most enhance the value of your business today?

☐Protect: Defensive strategy against tech enabled competitors

☐Grow: Win new clients

☐Revenue: Growth of voluntary, ancillary, wellness, other

☐ Expenses: Ease administrative burden / inefficiency

☐Clients: Meet their needs – compliance, cost-control

STEP 1:Assess your readiness

Learn and identify the benefits administration model

that is right for you

When it comes to benefit enrollment,

it’s all about the big picture — not just a

once-a-year requirement. Smart brokers

know that a successful benefit enrollment

requires taking a long-term view and a

holistic, rather than piecemeal, approach.

““

— Jay Hutchins, California Broker Magazine

OWNER

Has Own Platform

PARTNER

Partners with a

Tech Consultant

ADVISER

Advises Clients on

Their Options

“I provide ben admin

support to my clients as

part of my service”

“I work with an entity

that has a full-service

ben admin platform”

“I recommend the best

platform for my clients

and negotiate funding”

What is the Broker

VALUE PROPOSITION?

Who is the PLATFORM

ADMINISTRATOR?

Who contracts with

SOFTWARE PROVIDER?

Broker Tech Consultant Ben Admin

Broker Tech Consultant Client

Different types of

BUSINESS MODELS

OWNER

Has Own Platform

PARTNER

Partners with a

Tech Consultant

ADVISER

Advises Clients on

Their Options

• Complete Control

• Only One Solution

• Resource Requirements

• Expertise Needed

• Compliance & Security

CONSIDERATIONS

When Selecting a

Business Model

• More Flexibility/Choice

• Can Tailor Solutions

• Scale

• Trust & Experience

• Expertise Not Required

• Compliance & Security

• 2-3 Solutions

• Scale

• Trust & Experience

• Expertise Not Required

• Compliance & Security

Different types of

BUSINESS MODELS

Which is most difficult for your clients in managing their employee benefits programs?

☐Maintaining legal / regularly compliance

☐ Improving efficiency of benefits administration

☐Controlling other benefits related costs

☐Communicating benefits plans to employees

☐ Improving workforce well-being

STEP 2:Create a benefits technology

strategy for your businessOne that is seen as an imperative

— not a “value add” — by your clients

Your

Business

Strategy

Your Technology

Partner(s)’

Capabilities

Your

Clients’

Needs

DEVELOP THE STRATEGY

Address key

questions about…

…and find the

intersectionYOUR BUSINESS

STRATEGY

YOUR

CLIENTS’

NEEDS

YOUR

TECHNOLOGY

PARTNER(S)’

CAPBILITIES

• Size of Firm

• # of Clients, Geographic Reach

• Client Mix by Industry, Size Segment

• Growth Strategy & Role of Technology

• In-house Technology

• In-house IT Expertise/Resource

Model & Strategy

ADDRESS KEY QUESTIONS ABOUT YOUR BUSINESS

• # of Employees, Locations

• Industry

• Workforce Composition (age, use of tech)

• Benefits Plan Complexity

• Benefits Management Style (e.g., Hands-on/off)

• Integration Points

• Use of HR Technology

Profile & Needs

ADDRESS KEY QUESTIONS ABOUT YOUR CLIENTS

STEP 3:Understand key criteria for

evaluating a potential benefits technology partner

Partner with an expert – let them handle the technology

• Company Ownership

• Market Reputation

• Pricing Models and Consistency

• SaaS vs. Full-Service vs. Both

• Capabilities Scope and Reach

• Carrier Partnerships

• Software Provider Partnerships

Business Model

• Software Ownership

• Who Stores/Transmits the Data

• Infrastructure and Q4 Up-time

• User Experience

• Integration with Carriers/HCM Systems

• Customize vs. Standard Configuration

• Specific Features Important to You /Your Clients

• Proof of Security Audit

Software Features

• Years in Business

• Number of Employees (Technical vs. Client-Facing)

• Number of Group Clients & Associated Lives

• Implementation Process (Roles/Responsibilities)

• Client Support Model, Client Satisfaction Metrics

• Transparent Service Level Agreement

• Tech E&O & Cyber Security Insurance

Operating Model

How many benefits technology partnersinteract with your business?

☐ I don’t leverage technology today

☐ I have tested several, but not sure we’re committed to any

☐ I have a single vendor

☐ I have 2-4 partners I use to cover most client needs

☐Unlimited. I use partners based on my client’s needs

QUESTIONS?