Analyzing the Current State -- from the Benefits Process Redesign Team

This is an excerpt from a longer document. For more information on HR-Payroll's real-life experience with BPI, click here.

STAKEHOLDER REQUIREMENTS OF BENEFITS ENROLLMENT PROCESS

The Redesign Team spent some time defining the various requirements of all those relying on the benefits enrollment process. They are as follows:

CUSTOMER REQUIREMENTS

Ease of Use/Access

Easy to enroll, make changes and to terminate
Easy access to plan information (7 day- 24 hour availability)
Easy access to an individual's benefits
Easy to make changes on-line
Access to a computer for those who don't have one available
An alternative path for those who prefer to avoid electronic usage

Reliability

Accurate, dependable and consistent process resulting in desired outcomes 100% of the time
Changes made with one office automatically populate other offices
Beneficiaries receive accurate information about life insurance proceeds
For dependants, coverage is not cancelled when employee or retiree dies
Smooth transition at age 65

Timely

Immediate acknowledgement/confirmation
Immediate updates to individual benefits
Immediate transfer of data to payroll to start or adjust premiums
Quick turnaround time for processing of cancellations
New hire in the system prior to start date, ability to enter future date
Receipt of Identification Card and other communications happens promptly
Subscribers receive timely information on benefits without having to interact with employee/retiree

MIT's REQUIREMENTS

Cost Effective Process

Cost effectiveness includes:
o Getting the best rates from carriers
o Efficient transaction processing
o Collecting premiums from employees, retirees, and subscribers

Being more cost effective may result in a lower Employee Benefits (EB) rate. A lower EB rate is attractive to research project sponsors because more of their dollars spent will be on the research and not on the additional overhead costs.

Competitive Market Value

Offering the best benefits package to potential employees helps MIT recruit the 'best and brightest'
Helps to retain current employees, and makes MIT a more attractive place to work

Reliability

Accurate data transactions will improve overall process. This will result in better service to the employees
The time individuals have to spend on resolving discrepancies will probably be during working hours, which can lead to lower productivity.
Accurate data leads to better reporting.

PAYROLL/ACCOUNTING REQUIREMENTS

Timely, Accurate

Automatically update deductions
Automatic calculation of life insurance deduction based on carriers criteria
Automate billing to employees on leave of absence, link to Accounts Receivable

Enter deductions to calculate adjustments based on effective date of enrollment changes

Ease of Use

Easy download of headcount data
Detail reporting by plan
Recap of employee data when needed to reconcile with historical information

System makes adjustments and generates check request with link to Accounts Receivable

System captures

CARRIER REQUIREMENTS

Work with MIT on system interface
o Coordinate HR Payroll implementation with vendor project schedule(s)

Timely, Accurate

Need accurate information on a timely basis
Need membership rosters and financial information to reconcile
Need to recognize specific requirements for areas such as life insurance beneficiary designation