Canadian HR Reporter

CANADIAN HR REPORTER August 8, 2016 14 FEATURES BENEFITS Should you switch to a single insurer? A look at the best approach for – and pros and cons of – streamlining the process By Judy Buckley and Mark Dowdell H R professionals juggle a substantial number of responsibilities, from recruiting, training, compensa- tion and benefits to the compa- ny retirement plan. So it's only natural to look for efficiencies in how they manage their com- pany's HR programs. Insurance companies often of- fer a variety of programs for plan sponsors that can include health and dental, life insurance, dis- ability benefits, accidental death and dismemberment, group re- tirement services, as well as well- ness programs and plan member communications services. For the most part, employers take an in- dependent approach in evaluating the best providers for each. Often, the same insurer is brought onboard to manage all the various group benefits and group retirement needs for an or- ganization. Other times, a num- ber of different carriers may be involved. So, what is the best ap- proach? What are the benefits of having a single carrier? Are there any risks? e short answer is it's compli- cated. It depends on an organiza- tion's priorities and how the plan fits strategically into the total compensation picture —because if cost is a priority, decisions will be different than if the employee experience is the top priority. e answer also depends on whose perspective is being con- sidered. The plan sponsor and plan member have different needs and objectives for their plans. e benefits Here are some of the benefits to rolling up benefits and retirement programs under one carrier: Cost: For some organizations, this is an important consideration that can play a significant role in the decisions they make. By hav- ing the health and dental plan, life, accidental death and dismember- ment (AD&D), disability and re- tirement services with the same carrier, there are opportunities for negotiating financial advan- tages for an organization, such as incentives or a potential reduction in expenses. Administration: One of the benefits of working with one car- rier is the administration can be simpler. Plan administrators may find it easier to work with one insurer across all benefits and re- tirement, with an ability to more effectively navigate the insurer's organization, and deal with a common system, terminology and processes. The employee experience: is is possibly the most signifi- cant benefit to having a single carrier to deal with. For example, many employees may not distin- guish between which insurer is managing their paramedical ben- efits from which is managing their retirement. If they call the wrong insurer, the call centre will have no real ability to transfer them or assist in any way if the retirement plan is with another company, and this can lead to frustration and time wast- ed. In addition, many carriers of- fer a single sign-on experience for plan members to be able to access both their retirement and benefit information. For the most part, these are still separate sites, but having separate log-in credentials has been addressed by the major- ity of insurers. Generally speaking, featuring one provider for both services creates a more cohesive experience for employees. e risks While there are benefits to op- erating with one insurer, this ap- proach is not without risks. Over the past decade, the finan- cial landscape across the country has been witness to substantial merger and acquisition activity, and with this comes the real pos- sibility that an employer's carrier may be involved in one of these transactions. If it has a consoli- dated plan with one insurance company that is involved in a transaction, then it has various group benefits as well as the group retirement plan to think about. System changes and customer service can impact both benefits and retirement platforms under this scenario. e situation be- comes more complicated if there might be another insurer involved with AD&D, life or long-term disability. If a situation arises that requires making a change, it becomes more challenging to switch carriers if an employer is looking to preserve the idea of having a single insurer for its platform. e opportunity Although there are some clear benefits to amalgamating benefits and retirement plans under one carrier, the reality is most insur- ance companies still operate with their benefits and retirement di- visions in silos, including the ac- count servicing teams and plan member experience. is is the area where the con- cept of offering a truly integrated solution can gain great traction. For example, although single sign-on has become a reality for most carriers, the online experi- ence for plan members is still di- vided between two separate sites for their health and dental, and their group retirement.Better in- tegration between the sites will pave the way for a more holistic experience and increased loyalty. Another area of opportunity ex- ists on the account servicing end, where plan sponsors work with different representatives and di- visions within the same insurance company. Employers that commit group benefits and group retire- ment platforms to one insurance platform deserve a single point of contact, perhaps in the form of an executive sponsor. Increasingly, employers are evolving to integrate a more com- prehensive and holistic compen- sation experience for employees. Employees' paycheques come from the employer. Where do re- tirement statements come from? e drug card? Who do employ- ees call about long-term disabil- ity? An important part of employ- ees' experience with an organiza- tion comes in the form of direct contact with the insurers. A cohesive and integrated ex- perience for plan sponsors, ad- ministrators and, ultimately, plan members, will lead to a stronger and more customer-centric em- ployer brand, engendering loyalty and a long-term partnership. Both at Accompass in Toronto, Judy Buckley is vice-president of benefits and health and Mark Dowdell is se- nior vice-president of investment and retirement. For more information, visit www.accompass.com. sharing among institutions. Building on existing platforms, there are opportunities to retain quality while being more flexible, whether in terms of crediting mature students for experience, sharing courses or crossing dis- ciplines through experience- linked learning, internships and other opportunities. • e effective matching of job- seekers and jobs — current pro- cesses are highly fragmented. A collaboration between the On- tario Chamber of Commerce and Ryerson University — Magnet — is an example of an advanced technology platform that helps employers find jobseekers who match their needs and helps job- seekers find positions mapped to their skills. • The application of innovation models to education and training and better sharing of approaches that work as well as curriculum. is does not mean just tech- nology or an online course — programs need to be designed around learning outcomes, whether it's Shakespearean or Ruby on Rails programming. Too often, we do unto students as was done unto us without thinking about why or how we are doing it. It's about trying new things and new approaches and evaluating them — knowing they may fail. • Outcome and performance tracking and metrics based on a nuanced understanding of how key performance indica- tors (KPIs) can also produce distortions and unintended consequences. • Looking upstream to ensure elementary and secondary stu- dents have the literacies needed to provide maximum choice and opportunities. English, math- ematics and technology are the foundational skills — as well as access to the information and counselling they need to suc- ceed. Socioeconomic factors have an enormous impact on the opportunities provided to young people and we need to level the playing field. Wendy Cukier is vice-president of research and innovation at Ryerson University in Toronto and president and vice-chancellor of Brock Univer- sity in St. Catharines, Ont. She can be reached at (416) 979-5000 ext. 6740 or wcukier@ryerson.ca. Collaboration needed BRIDGING < pg. 13 Though single sign-on has become a reality for most carriers, the online experience for plan members is still divided between separate sites.

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