From HR efficiencies to a better user experience, learn the value of working with a single provider for your employee benefits administration
Vendor consolidation is a growing trend within the business world. It’s becoming increasingly popular because companies understand the multiple advantages of reducing the number of partners with whom they interface. It’s also a valuable strategy in the world of employee benefits management. For example, companies can gain financial improvements by using one single vendor for both benefits enrollment and eligibility and pension administration.
There are several circumstances under which consolidating benefits and pension administration is a smart next step, including when the company is experiencing quality issues with one or both vendors, or when they are paying too much for the services rendered.
There are three leading advantages to consolidating benefits administration: greater HR efficiencies, a better experience for employees, and cost savings for the company.
Greater Efficiencies for the HR Team
Companies often contract with different benefits and pension administration vendors because they believe they are contracting specialists in different areas of benefits. But even if that were true, the downside of working with two vendors is often more significant than any perceived gain. What’s more, highly experienced benefits administration firms are experts in more than one area of benefits administration.
This has several significant implications. Instead of dealing with the complications and hassles of managing two separate vendors, you're managing one vendor day to day. This delivers a steady-stream workflow from start to finish. This is a significant advantage when you consider that even passing data back and forth between two different systems can mean a disconnect that leads to delays or errors.
Deploying an integrated benefits service means less work for the HR team because everything is located in one place and processes are identical, such as the payment system. Without this integration, HR teams have extra work to do for everything from accessing employee benefits data to transitioning retiring employees to their pension benefits.
For example, with one vendor, all benefits administration data is housed in one central location instead of multiple dispersed locations. This makes accessing the data for in-house HR teams much easier, no matter which employee or benefits they are dealing with. If they have to go to more than one website and database, even if they are dealing with one single employee, it means doing a lot more work and taking a lot more time.
A lack of integration among benefits programs also means that HR workers have to be educated on using two different systems. If they don’t know one of the systems well or lack an understanding of the system’s nuances (for example, to deal with the escalation of an issue or with missing data), this could lead to frustration or an error that creates problems for an employee. With one vendor, any issues can be resolved more efficiently.
Better Experiences for Employees
User experience is one of the most important considerations in our digital age. As people’s lives become more digital, their expectations and standards of service increase. Poor user experiences leave long-lasting bad impressions — and when it comes to benefits administration, this can even impact employees’ job satisfaction. On the other hand, if their benefits programs are integrated and streamlined under one consistent and dependable user experience, employees will be much more satisfied with their benefits.
The majority of companies understand the value of making the benefits administration process as smooth as possible for their employees — from the simple, such as updating an address, to complex, such as paying for ongoing health benefits after retiring. This includes giving them a one-stop-shop from a single vendor. Everything is all in one place on one website for all of their needs.
Cost Savings for the Company
For one thing, companies don’t have to deal with inconsistencies in the quality of benefits administration. They can be assured of a consistent level of performance that positively impacts both the HR team and the employees.
The implications include saving the company the extra time required for the HR team to work on multiple systems. What’s more, when working with one vendor for both benefits and pension administration, companies can often negotiate more cost-effective contracts than when using two different vendors.
To gain the advantages of a single, expert benefits enrollment and eligibility and pension benefits administration vendor, contact LifeWorks today. Talk with one of our representatives about how your organization can transition from the complexity of multiple vendors to one single vendor for your employee benefits and pension administration.