Shopping for and Implementing a New Benefits Administration System

Benefits administration is a critical function for human resources teams. It involves managing and optimizing an organization’s employee benefit offerings, including health insurance, retirement plans, paid time off, and more. As companies grow and evolve, it is common to reach a point where an outdated or inefficient benefits admin system is hindering your HR team’s effectiveness. Shopping for a new, modern platform can transform your benefits management capabilities.

To simplify things, we’re arming HR professionals with a guide to shopping for and implementing a new benefits administration solution that aligns with your organization’s needs. We will cover key considerations in the vendor selection process, planning for a smooth implementation and ongoing maintenance best practices. With the right strategy and technology partner, you can streamline benefits processes and free up your HR team to focus on more strategic initiatives.

The process of selecting a new benefits administration platform starts with clearly defining your goals, assessing your needs, evaluating vendor options and ensuring regulatory compliance and data security.

Assessing Organizational Needs
Take time upfront to evaluate your current benefits management processes and identify areas for improvement. Analyze where you are spending the most time on manual admin work or spreadsheets. Consider how your workforce is evolving and what types of benefit offerings you want to provide in the future. Defining objectives will focus your search on systems with the right capabilities.

Also examine your existing HR technology ecosystem. Prioritize solutions that will integrate seamlessly with your other platforms like payroll and HRIS to create a unified experience. APIs and EDI connections are key here.

Vendor Evaluation
With goals defined, you can start reviewing vendor options that align with your must-have functionality, company size, budget parameters and other needs. Beyond just the software features, evaluate the provider’s implementation approach, support model, company stability and client references.

Carefully assess each platform’s flexibility and scalability as well. You want a system that can adapt as your needs change without requiring a complex new implementation. SaaS solutions that are continuously updated and enhanced are ideal for growing companies.

Regulatory Compliance and Data Security
It’s essential that any benefits admin platform supports compliance with laws and regulations like HIPAA, ACA, COBRA, ERISA and more. Ask vendors about their auditing and security protocols to protect sensitive employee data. Robust identity management, access controls, encryption and SOC 2 Type 2 audits are indicators of a mature compliance program.

Once you’ve selected a new benefits administration vendor, it’s time to develop a detailed plan to successfully roll out the new system. Follow these best practices for implementation:

Create a Structured Implementation Plan
Define all key milestones and dates in coordination with your chosen vendor. Assign owner accountability for each step. Plan for testing phases, data migration, integrations setup, training, go-live and post go-live support.

Proactively communicate timelines to your internal HR team and other stakeholders. Manage expectations around potential short-term productivity dips during the transition.

Prioritize Training and Support
Set your HR team up for success by providing comprehensive training on administering the new benefits platform. Identify power users who can supplement the vendor’s support and troubleshoot issues.

For employees, offer resources like videos and webinars to get them up to speed on self-service features and new enrollment processes. Clear communication is essential.

Focus on Change Management
A new system inherently means changing processes that people are accustomed to. To drive user adoption, emphasize how the updated technology will make daily work easier for both HR admins and employees. Highlight new capabilities that weren’t possible with old legacy systems.

Celebrate milestones achieved during the implementation to maintain momentum. And solicit feedback to identify any additional training needs after go-live. A user-centric focus will smooth the transition.

The work doesn’t stop once your new benefits administration system is live. It’s critical to plan for ongoing management, enhancements and user support.

Provide Continuous Training and Troubleshooting
Keep users engaged by sharing regular tips and tricks for getting the most from the platform. Maintain an issues log to proactively identify opportunities for supplemental training. For employees, promote self-service tools that provide quick benefits answers rather than relying on HR inquiries.

Leverage Vendor Expertise
Your benefits administration partner should provide technical upgrades and new functionality releases on a regular basis. Leverage their expertise rather than trying to customize systems yourself. Submit enhancement requests and share feedback to influence future roadmap development.

Schedule Periodic Check-Ins
Set quarterly or bi-annual reviews with your vendor relationship manager and account team. Discuss usage data, adoption levels, upcoming changes that may impact configuration and new capabilities on the horizon. Keeping an open and ongoing dialogue ensures you maximize value.

For additional guidance, check out some of our related resources focused on effectively choosing and transitioning to new benefits administration technology:

• The Complete Buyer’s Guide to Benefits Software: This comprehensive buyer’s guide provides a detailed checklist of must-have benefits admin features, vendor evaluation criteria and questions to ask potential partners. It shares tips for a successful transition to a new platform.
• Benefits Administration Overview: This overview explores the key capabilities of PlanSource’s benefits admin solution. It demonstrates how the platform streamlines open enrollment, life events, billing, reporting and more in one intuitive system.
• Benefits Outsourcing and Services: PlanSource offers various services like dependent eligibility audits, text-based communications, and HR process outsourcing to remove benefits administration burdens. This page outlines options to supplement technology.

Selecting and implementing new benefits administration technology is a complex undertaking but well worth the effort for the long-term gains. Following a structured process will help ensure your new system meets defined objectives for streamlining benefits management. Leverage the guideposts in this article as you embark on this foundational HR systems project. Partnering with the right technology provider and investing in change management will enable a successful transition.