These are additional questions to answer as you assess your organization’s Human Resources information technology needs. Here is the first half of the questions.
- Will the technology provide Human Resources with the authority to decide who will be allowed access and to what degree? Along the same vein of providing employee access, the technology should give HR the final say. HR should have the authority to approve all data before it is transmitted to carriers, and should also determine the extent to which employees and others have access.
- What types of reporting capabilities are available from the HR information technology? Reporting technology should offer multiple views and formats (spreadsheet, PDF, html), big picture assessment and the ability to drill down to enhance decision-making. HR should be able to assess, at any time, enrollments in specific plans, outstanding actions, and changes in employee demographic information in relation to benefits and other employee data.
- Does the software offer specific features to help HR save time? Depending on its own departmental needs, HR might want to inquire about the technology’s ability to process information in batches, manage notifications and billing for COBRA policies, provide self-billing and bill reconciliation tools, and specific reporting.
- Does the software offer specific features to help HR communicate better with employees? Some programs give HR the flexibility to communicate with employees on a number of levels - via mass email, electronic "bulletin boards," and by specific filter criteria (such as location, department, insurance plans, enrollment status, retirement status, and others) through the HR information technology system. Having a number of means to communicate can further automate processes and help HR to better target messages.
- Does the HR information technology system provide a means of checks and
balances? In addition to enabling HR to approve transactions, many HR information technology systems also provide capabilities for HR to serve as the gatekeeper in auditing carrier billings to make sure they agree with the data in the system. This can:
--ensure the accuracy of carrier invoices,
--save time and money,
--assist in the timely delivery of employee enrollments, and
--enhance confirmation of eligibility when employees go for care. - How will information be exchanged with carriers? And, who will be responsible for this
interaction? Integration of the HR information technology system should be judged not only by the number of carriers with which the software has relationships, but by the type of connection that it enables. Ensuring successful interaction with carriers through a benefits management
software requires many steps, including:
--gathering initial implementation data census;
--setting up initial integration for the ongoing information exchange;
--coordinating daily or weekly interaction to make sure data is received and accurately applied;
--reviewing ongoing updates;
--ensuring carrier requirements for enrollment are being met in compliance with regulators; and
--fostering a proactive relationship with each carrier to improve the relationship of data exchange.
Knowing who is responsible for each task is essential to fully understanding a product offering. Each software provider will offer a different level of integration in providing some, to all, of the tasks outlined above. HR should look to work with vendors that demonstrate strong, ongoing, seamless relationships with the company’s selected carriers.
Many providers enable transmission of a generic ANSI 834 file, which may or may not be accepted by the carrier, a factor often influenced by the size of the group. Managers should look for providers that offer clean, validated transfers (ensuring the eligibility of the transaction), customized to each carrier’s needs to avoid issues. They should also look to providers that have a dedicated EDI (Electronic Data Interchange) department to interact with the carrier’s own, specific transfer language. - What level of customer service is provided? Is there an additional charge for service? HR should determine the level of access to “help” that is provided and what constitutes customer service - online help via a database, online chat, email support, conversations with a live person, or a combination thereof. Given the sensitivity of benefits and other HR information, managers should expect a response to inquiries within 24 hours from a direct contact that can help.
- What is the cost of the HR information technology system and does it outweigh the benefits? HR should assess the complete cost of the HR information technology system, including all annual, monthly, and one-time charges, alongside the benefits provided. A slightly more expensive system may more than pay for the difference with features that enable employees to maintain their own records and offer greater convenience, time savings, and accuracy. These factors should be considered and weighed in selecting an HR information technology system.
The need for HR information technology systems is increasing. With HR staff finding a vast array of options in HR information technology systems, it is increasingly important to analyze and weigh all options available. Choosing an HR information technology system should be looked at as an investment that will grow with the department and company’s needs. These questions will lead you to the appropriate HR information technology system for your company.
