As small and medium-sized companies start to grow, so do their business needs, and human resource services are no exception. HR is a multi-faceted task that encompasses assessing company and employee needs, hiring, obtaining and managing benefits and ensuring employee satisfaction, to name a fewimportant elements in growing companies.
Many small businesses do not have the option to add personnel in times when they most need it and their businesses are rapidly growing. However, with advancements in human resources management technology and sometimes by also outsourcing some HR functions, these growing companies have more options for expanding on HR services provided. This article will show how technology can help small and medium-sized companies do more with less.
With many small companies having only one individual to perform all HR tasks from dealing with strategic issues, to hiring, managing paperwork and filing employee benefits changesand that person sometimes wearing multiple hats, many small and medium-sized companies have found relief in using technology to help manage all of the details.
Software vendors have stepped up to the plate with solutions to help HR professionals do more with less--from effortlessly transforming antiquated paper-laden files into streamlined systems, saving countless hours of administration time, to taking care of employee self-service, enabling employees to help themselves. Programs housed and maintained by an Application Service Provider (ASP) provide all of the benefits of advanced software systems through a conventional Internet connection, without requiring the technical hassle of managing programs on-site. That means "less 'stickies' all around my computer," for Jennifer McCreight at Guidance Software, and many other HR professionals formerly required to "collect all of the forms, fax them to the broker, and before that fax them to each carrier" and who can now click on an icon to get the same results.
With the ability to cut the time required to execute many tedious tasks in half, software can be a great help to individuals tasked with HR.
Below are important considerations for smaller-sized businesses to evaluate in selecting software to help manage HR.
Scalability. With so many start-ups and entrepreneurial ventures, the question to ask is not always - 'What size is my company now?' - but rather 'Where will it be in five years?' The largest provider may not necessarily be the best if your company gets lost in the shuffle. Yet, a tiny provider may not have the capacity to grow to meet the needs of companies with aggressive growth plans.
"Turnkey from the onset. Most businesses opt for a new benefits tracking program during a logical, yet very busy time-open enrollment. Why not choose a product that only requires you to start the program and your data is already entered? This is a big time savings.
Ownership of the Data. 'Who owns the data?' is a logical question that arises, to which the answer should be: you. Organizations should have full ownership of their data and be able to transport it to any ASP. If the data resides on a carrier's proprietary server, it is often not transportable without additional charges, should you or your client decide to switch carriers.
Security. Established ASPs should have daily backups, backup servers, added protective layers and other systems and procedures in place to safeguard information from being lost or accessed by unauthorized personnel.
You should have exclusive authority to decide who will be allowed access and to what degree. Any data that is transmitted to carriers from your system should either be transferred within a secure encrypted session or be encrypted prior to being sent.
Users should be authenticated, and have the ability to navigate, within a secure SSL Session (128 bit encryption), the strongest available.
You should also ask questions about the network configuration. A classic three zone system with the web and report servers being in the "DMZ" (Zone which allows web access and therefore must have port 80 and 443 open) and database server in the "Trusted Zone" (zone which has all inbound ports blocked) is considered the most secure, for instance. The firewall ensures that the above network rules are enforced and that malicious attempts to supersede those rules are foiled.
Flexibility and scalability. Given that you may be importing data from multiple Excel spreadsheets, databases and paper documents, the provider you partner with should be flexible - able to interface with all kinds of systems and data. To ensure the most relevant experience, the software should also accommodate company-specific eligibility rules, employee classifications, etc.
Self-service. Given the time and cost-savings possibilities, wide access to computers at home and at work (70 percent of the population has home access) and employee satisfaction at gaining complete access to their benefits plans, enabling individuals to directly access and manage benefits online is a natural extension.
Employees should be able to easily breeze through adding and deleting dependents, updating demographic information, changing plans at open enrollment, viewing plan designs, linking directly with online provider directories for doctor look up, comparing plans and employee contribution options, printing documents related to their records, etc.
Robustness of the eligibility engine. A truly capable enrollment engine will evaluate each enrollment activity and apply any necessary combination of rules, messages, prompts, and options specifically designed to meet the exact eligibility requirements desired. Effective date calculations, waiting periods, age ranges, volume limits, group number assignment and product availability all must be configurable for each employer group and benefit offered. Furthermore, you should not have to modify your eligibility rules to accommodate a piece of software. If you have a specific need, you have every right to expect enrollment software to accommodate it.
Current functionality. With software applications, far too many promises are based on wishful thinking on the part of developers. It's important to know what the program can deliver now - not what it will do six months or a year down the road.
Reports. Reporting is essential in helping small and medium businesses to stay on top of the needs of the company. Software should offer multiple views, big picture assessment and the ability to drill down.
Linking with carriers. Connectivity should be judged not only by the number of carriers the software has relationships and can connect with, but by the type of connection that it enables. 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. HR 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.
Technical considerations. Where did the provider's program originate? Did software programmers develop it? Did it emerge from the insurance industry? Is it associated with one provider? Is it dependent on a particular operating platform? Will it be as effective in a LAN environment as in an enterprise system? If you change providers, will all of your data have to be reentered? What is the background and experience level of the development team? Do they have state-of-the-art developers, programs, customer service representatives, and relationships with a broad group of providers? These are all important technical considerations your IT department will want to know.
Customer service. Don't underestimate the importance of great customer service. As you enter into a partnership with your ASP provider, you will want to know if you will quickly be able to talk to a human or become a prisoner in voice mail "jail. As a general guideline, businesses should be able to expect a response to inquiries within 24 hours from a direct contact that can help.
Implementation timeline. Depending on the size of the company, most ASPs should be able to implement their solutions in a matter of weeks. If you have stringent deadlines or extenuating circumstances, you should disclose that information to the provider early in the process. Communicate your expectations, and put them in writing so there are no misunderstandings down the road.
Pricing. Wide pricing variations can exist in the same service, so buyer beware. Some providers charge a licensing fee for use of the program or charge per enrolled employee. Ask about monthly, implementation, maintenance and ancillary fees to assess the full cost of the system.
Costs versus Benefit. 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. It is also a convenient solution in today's rapidly increasing decentralized workplaces, where employees telecommute, work in the field or reside in other states.
In conclusion, the business of being in business has grown more and more complicated. Ensuring employee satisfaction through good hiring, compensation and benefits management can play a pivotal role. Small and medium-sized businesses looking to expand HR capabilities can often find help and expand on existing resources with HR technology.
