KEYS TO SUCCESSFULLY LAUNCHING AN IN-HOUSE

BENEFITS PROGRAM

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LEARNING OBJECTIVES

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1. Know when it’s time to look for new benefits and HCM

2. What you will need to make the transition (Benefits, Payroll, HCM and

Headcount)

3. What to look for when selecting a benefits broker and HCM solution

4. How to make the transition and stick to an implementation timeline

5. Understand the challenges that occur along the way

Confidential – Not for Distribution 3

WHEN TO KNOW IT’S TIME TO LOOK

FOR NEW BENEFITS AND HCM

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Benefits of a PEO

• Competitive benefits platform to attract talent

• Bundling of solutions needed to run a small business

• Reduce headcount needed to administer payroll

• Access to HR services like onboarding, compliance and employee

relations

• Worker’s Compensation coverage and administration

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Key Considerations

• Is your workforce growing?

• Is it becoming cost prohibitive to stay in the

PEO?

• Are you maturing and have a more strategic

approach to HR?

• Are you losing control of essential

processes, people and culture?

• Can you obtain similar health coverage at a

comparable rate?

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Key Considerations – Timing

• Are you able to exit the agreement without any

penalties?

• Know what are the tax implications to both the employer

and employee

o Requires adjustment on taxes due to overpayment;

o Employees may have already met their Social

Security wage requirements

o Employer loss of over payments for FICA and FUTA

taxes due to restart of liability

• If you will need to issue one or two W-2’s

• If you will need to have one or two benefits open

enrollments

WHAT YOU WILL NEED TO MAKE THE TRANSITION

(BENEFITS, PAYROLL, HCM AND HEADCOUNT)

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What You’ll Need

Benefits HCM

Payroll Headcount

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What You’ll Need - Benefits

Medical

Dental

Vision

Short & Long Term

Disability

ACA

Benefit Admin &

Enrollment

COBRA &

Unemployment

CHSA (FSA &

Commuter Benefits)

Life & AD&D

(+Voluntary)

Worker’s

Compensation & EPLI401k

Communications &

Call Center

Employee Assistance

Program

Invoice Reconciliation

Benefits

Payroll

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What You’ll Need - Payroll

State Filings

Self-Service

Leave of Absences

Processing

(International)

Employee View

(Paystubs & W-2’s)

Time-off Tracking

Tax Filings SUI Set-up

Time-Keeping

401k

HCM

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What You’ll Need –

Human Capital Management

Leave of Absences

E-signatures

I-9 & Background

Checks

Employee Data

Performance

Management

ATS

Org Charts & Directory

On-boarding/

Off-boardingLabor Law Posters

SSO & Mobile

Benefits Enrollment

ACA

Headcount

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What You’ll Need -

Headcount

Payroll Specialist HR Manager or

Director

Benefits Coordinator

WHAT TO LOOK FOR WHEN SELECTING

A BENEFITS BROKER AND HCM SOLUTION

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Selecting a Benefits Broker

• Brokers get paid by the carriers; no out of

pocket costs

• Quotes will be competitive; based on

company size

• Find a broker who will give you options

• Can they bundle other services such as

worker’s compensation, EPLI, carrier

connections, invoice reconciliation, etc.?

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Selecting a Benefits Broker, cont.

• Negotiate a “kick-back” to the cost of your

HCM platform

• Do they provide employee support for

questions and claims support?

• Will they conduct open enrollment meetings?

• Will they create communication tools?

• Will they provide quarterly reviews and annual

strategy planning?

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Selecting a Human Capital Management System

• How important is integration with other

systems?

• Do you need international capabilities?

• Will you be a small fish in a big pond?

• What type of service model do they provide?

• What are the implementation costs and annual

costs?

• Is there a more than one year obligation?

RFP Template and Scorecard

HOW TO MAKE THE TRANSITION AND

STICK TO AN IMPLEMENTATION TIMELINE

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Implementation Timeline

Launch

• Week 15

Production

• Weeks 12 -14

Validation

• Weeks 9 - 12

Conversion

• Weeks 8 -9

Configurate

• Weeks 5 -8

Analysis

• Weeks 2 – 6

Kickoff

• Weeks 1 - 2

Implementation Project Plan

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Change Management

• Communicate often

• Focus on the benefits of the transition

• Ensure employees understand what action is needed

• Ensure employees know the impact to benefits

• Partner with IT to make the transition easy

UNDERSTAND THE CHALLENGES

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Expect the Unexpected

• Prepare your Legal team for the many contracts and agreements

• Time necessary to set up carrier feeds and conduct invoice

reconciliation

• Prepare your Payroll Team:

o Premium changes from voluntary life & AD&D

o Collecting EOI’s

o Premium changes for life events

o How to handle taxes for domestic partnerships

o Tracking benefit premiums for employees on leave

Q&A

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LET’S STAY IN TOUCH!

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