Guide to Benefits Administration: Implementing and Managing the Right “System” 

By Austin Baker

Benefits Administration technology and tools can be one of the least understood and most complex areas of your HR department. Many HRIS/Payroll providers struggle with this area of their technology, and many choose to partner with specialty Benefits Administration vendors because of this complexity. Most other technology applications used by HR departments do not communicate with nearly as many systems, nor do they have to manage and maintain the same depth or volume of sensitive records and personal employee data. All too often this area represents one of if not the greatest pain in an HR department, and can generate heated calls from employees when not operating properly or efficiently.  

Keys to Success

Success in Benefits Administration requires HR leaders to focus on these core elements:

• Select and architect a system that serves the most imperative organizational needs.
• Implement “systems” 
• Pursue process improvements.
• Maintain and manage a culture of reinforcement and training. 
• Innovate & communicate across all channels.

Implementation of “Systems” 

How do you define a “system?” If you are like many individuals out there, you likely think of the technology aspect of a system first. But a system is more than a single technology or platform or software program; a truly comprehensive system is inclusive of processes, data, workflows, approval hierarchy, and auditing, to name a few. The demands of your organization should be reflected in the size and complexity of your systems. 

When implementing any new system, the learning curve can be steep and will likely have some pain and complications along the way. Learning from those challenges and working collaboratively with your vendor partners, while also improving and challenging existing internal processes, is the key to success in implementation. Having resources and experienced partners who are specialized experts in the areas where you need the most support can smooth the process of evolving your Benefits Administration system.  The systems that you create can reduce internal burdens to avoid stifled growth while boosting employee satisfaction and retention.

Building a cross-functional and collaborative committee of internal and external resources and partners will allow your organization to pull the best information and performance from the people most equipped for each nuanced element of your specific Benefits Administration system. Find the people and partners most qualified to present strategic opportunities and solutions that will improve the system. Involve your outside vendors in these discussions and challenge them to bring you models to help you do your best work. 

Process Improvement

Technology alone without process improvement is a waste of money, in addition to depleting invaluable resources like time and employee performance. If you and your organization are not committed to changing the way you do business, you should not adopt new technology. And investing in new technology without the proper partners to utilize and maximize the tools will only create frustration and increase workloads. Creating an incomplete system fails to solve the existing organizational pains and creates new ones. 

Having a commitment to change management from the top of the organization is a must.  Consider these leadership commitments to help you with process improvement: 

• Challenge each person in your organization to map out and document processes to do the work.  
• Set your team up with the mindset that at any point someone on the team may need to cover for them, or that they may have an opportunity to hire their replacement as you grow.  
• Imagine you are hiring a person whose role is already defined by a well-developed and documented process; how does this change how you do your work?  Would you want to walk into your organization’s existing process as a new team member? Would you succeed or fail?

User Adoption Training & Reinforcement 

I have seen many organizations create a budget for implementing technology that fails to include room for the necessary user-adoption training. Self-paced training models can serve you well, but the organization must own the success or failure of this investment. As a leader we must set the expectations; owning the problems in your HR Benefits Administration system and hunting for solutions.  We must be inclusive of process improvement and future training that demonstrates consideration for the ongoing organizational challenges, creates a roadmap for more effective HR services, and embodies a commitment to a better way forward.  

As leaders, we are by default the chief designers of the processes and roadmaps we choose to follow; responsibility for success or failure also lies by default accordingly. Even the wrong piece of technology, when supported by great processes and training, performs better than a bright shiny new piece of technology that no one is using correctly or fully. 

Realigning & Right Sizing the Solution

Benefits Administration is complex and evolving. Implementing the system, setting up the processes, and training your team are not one-time events. Systems need to be tested. Bills need to be audited. File feeds need to be reviewed. Accountability needs to be clear as well. Specific task assignments and performance accountability will help ensure clarity of responsibilities. Realignment of processes and tweaking of systems over time is a part of every process. 

And finally if the tools and technology you have are not being used or not fully working for what your organization needs and wants, then be willing to make the hard decisions to invest in better people, technology, processes or vendors. Your organization and your Benefits Administration system, including the technology you select in addition to the processes and partners to choose for implementation and management, all require cohesive rigor and systematic accountability in order to perform. It is up to you as a leader to drive your “systems” to success.

HRO Partners can help evaluate and streamline your HR benefits administration services; for a demoof our services and to find out more, visit hro-partners.com  or call 1-866-822-0123.