White Paper Provides Benchmarked Benefits Administration Costs Using Total Cost of Ownership (TCO) Model
MARIETTA, Georgia (ContentDesk) January 9, 2006 -- Sourcing Analytics, Inc. (www.sourcinganalytics.com), a leading provider of HR, payroll and benefits consulting services, today announced the results of the first-ever comprehensive study on the Total Cost of Ownership (TCO) for health and welfare benefits administration.
The study was conducted by Sourcing Analytics, an independent consulting firm specializing in the evaluation of HR service delivery.
The study captured the TCO of benefits administration for 36 companies, all with more than 1,000 employees, and provides never before published benchmark data comparing companies that outsource benefits administration to those that keep the responsibility in-house.
TCO was defined as the total costs, direct and indirect, related to the design, implementation and ongoing management of health and welfare benefits administration.Key study findings include:"????Organizations that outsource benefits administration experience a 17 percent lower average TCO than companies that keep the responsibility in-house.
($199 vs. $165 per employee per year)"????Employers that integrate call center support within their benefits outsourcing arrangement, find that average TCO decreases further to become 24 percent less than in-house administration."????Study participants outsourcing benefits administration are more than four times more likely to offer Web-based annual benefits enrollment, and more than 18 times more likely to offer Web-based enrollment on an ongoing basis to manage status changes and year-round benefit options."????Companies outsourcing benefits administration reported low or no costs related to Sarbanes-Oxley compliance."????The cost savings achieved through outsourcing were true for all size and complexity groupings in the study.Additional survey results and a free White Paper prepared by Sourcing Analytics entitled, "Benefits Administration The Impact of Outsourcing on the Total Cost of Ownership are available by visiting the Sourcing Analytics web site: http://www.sourcinganalytics.com/benefits_admin.htm.While the study provides insight into the cost dynamics of outsourcing, it also provides something not available elsewhere in the market: a database of information specific to benefits administration.
With this information, Sourcing Analytics can now provide benchmark financial analysis unlike any other company.
Howard Gerver, CEO of HR Best Practices states: Given the high cost of employee benefit programs, plan sponsors have naturally focused on making plan changes to save money - a significant cost savings opportunity also exists in creating more effective and more efficient business processes."
Furthermore, benchmarking administrative costs can provide indicators of inefficient and risk laden administration.
Says Gerver, The eligibility and claims audit work HR Best Practices performs often reveals serious problems related to proper eligibility determination and enrollment administration.
In some cases, eligibility-related leakage can exceed 2% of total claim dollars.
Benchmarking costs in these areas can be a first step in identifying and fixing critical administrative shortcomings. ????This is the third TCO outsourcing study that has captured TCO information for payroll, HRIS and benefits administration for more than 250 companies with more than 1,000 employees.
Donald Glade, President of Sourcing Analytics, is excited to have been involved in all three studies.
Glade said TCO is a powerful tool for analyzing costs which can be used in determining the ROI of change, identifying inefficient process, or better managing risk.
In fact, the TCO studies all point to another key finding; there are right ways and wrong ways to outsource! Indeed, the study demonstrated that in the outsourcing environment, outsourcing fees as a percent of TCO can be as low as 20% or as high as 80%: the higher this percentage, the lower the TCO.
The study showed that the companies with the highest TCOs in an outsourcing environment retained the highest in-house costs, suggesting that companies can often reduce costs even further through internal process enhancement and effective relationship management.About the StudyMore than 35 companies participated in the study between July and August 2005.
Approximately half of the companies were administering benefits in-house, and the other half were in an outsourcing relationship.
These companies represented a broad range of industries, and had an average number of 4,155 benefits-eligible employees.
For the purposes of this study, the TCO of health and welfare benefits administration was defined as the processes of: determining eligibility for a set of benefit plan types; communicating eligibility and plan options to employees; managing enrollment for benefits at hire, during open enrollment and upon a status change; managing the flow of data to the network of carriers/benefit providers; and, managing the flow of benefit deduction information to the payroll system(s).
Sourcing Analytics developed and administered the surveys to calculate the total costs for health and welfare benefits including medical, dental, vision/hearing, basic life insurance, short- and long-term disability, personal liability, accidental death and dismemberment, flexible spending accounts, commuter benefits, long-term care, supplemental insurances, and voluntary benefits.
Clarifying calls were made to review and normalize against other responses based on many factors including company size, operating environment, and benefit process complexity.About Sourcing AnalyticsSourcing Analytics was founded in 2003 to assist providers and their clients in supporting the HR services relationship. Sourcing Analytics brings unique perspective, professionalism and methodologies and is committed to supporting the service partnership; ensuring that it is managed for success.Success in managing partnered solutions is not just desirable; it is essential. The costs of failure can be staggering. For the provider - purchase, renewal, and leasing revenues are at risk, along with implementation, training, and support investments that may rise into the millions of dollars. For the employer, it is much the same picture time, expense, and business disruption, as well as management and employee dissatisfaction from unmet expectations.As such, Sourcing Analytics analyzes, quantifies, recommends, and monitors solutions that enable companies to optimize their HR / benefits / payroll service partnerships.For more information about Sourcing Analytics, call 770-509-4816 or visit the company's Web site at www.sourcinganalytics.com..
NOVAtime’s Payroll Interface with QuickBooks Pro, Premier and Enterprise Helps Small Businesses Save Time and Money
Monterey Park, Calif., January 31, 2006
NOVAtime, (www.novatime.com), an industry leader in providing organizations with state-of-the-art time and attendance solutions that is fully integrated with various time clocks and data collection terminals announced successful deployment of its payroll interface with direct data exchange with Intuits QuickBooks? 2006 Pro, QuickBooks? Premier Edition, and QuickBooks? Enterprise Solutions. NOVAtimes latest release of the payroll interface allows direct seamless, do-it-yourself data conversion with QuickBooks? Pro, Premier and Enterprise, which provides small businesses a total punch to paycheck solution. This exchange of critical data, such as employee name, pay rates and departments will help small businesses who use both products to manage their business more efficiently - saving them valuable time, money, and resources. NOVAtime offers solutions to organizations of all sizes...
Payroll > NOVAtime’s Payroll Interface with QuickBooks Pro, Premier and Enterprise Helps Small Businesses Save Time and Money
Employer Payroll Tax Savings Using Section 125 with HSA Plans
Lake Geneva, WI (ContentDesk) October 5, 2005 -- HSA Trustee Services a nationwide provider specializing in opening Health Savings Accounts/HSA, working with Core Documents, Inc., a nationwide leader in providing compliant plan documents for Section 125 Premium Only Plans (POP), Flexible Spending Account Plans (FSA), Section 132(f) Commuter Plans, and Health Reimbursement Arrangement (HRA), have developed a HSA module for the Section 125 Premium Only Plan that allows the HSA savings component to be pre-taxed.Setting up a Section 125 POP with the HSA module allows business owners to save matching Social Security (FICA), as well as federal unemployment taxes (FUTA) and generally, state unemployment taxes, on the money employees contribute to their premiums as well as the HSA savings component. Employer tax savings can average 7 to 10 percent. In California and several other states the Section 125 payroll deductions reduce the threshold on which workers compensation premiums are levied...
Employer Payroll Tax Savings Using Section 125 with HSA Plans
Payroll > Employer Payroll Tax Savings Using Section 125 with HSA Plans
Oracle to Host IHRIM Change Management Course
(ContentDesk) May 2, 2004--Change management on an HRMS implementation is aimed at minimizing the risks related to end user acceptance and use of an HRMS and Payroll system. HRMS implementation projects can create a turbulent environment and the need for strong communication expertise.This course is designed for:????Project Managers on HRMS Projects ????Change Management Leads on HRMS Projects ????Project Team Members ????Key HR Stakeholders Change Management takes a proactive, structured, and disciplined approach to addressing the people side of an HRMS project. The approach that should be taken assesses at all phases, the interdependence of an organization's people, HR business processes, and the technology platform to be deployed. This approach helps to prepare the HR, Payroll and end-user stakeholders to understand the implications of re-engineered business processes on employee roles and performance measures resulting from a new HRMS in their daily activities.For more information...
Oracle to Host IHRIM Change Management Course
Payroll > Oracle to Host IHRIM Change Management Course
Business Filings and SB Suite Expand Their Targeted Market Reach Through a Strategic Partnership.
Los Angeles, CA; Madison, WI (ContentDesk) March 1, 2004-?Small Business Suite (?SB Suite"), the premier nationwide small business back-office services provider, announced today its strategic co-marketing partnership with Business Filings Incorporated ("Business Filings"), the Internet leader for incorporation and the formation of limited liability companies and nonprofit corporations.
Under the partnership, SB Suite and Business Filings will bring their respective members valuable services that all small businesses need to protect, run, and manage their business.
SB Suite's complete suite of bookkeeping, tax preparation, and payroll services will offer new or existing small businesses incorporating through Business Filings, with a complete suite of back-office services, at savings of 60% or more.
Likewise, Business Filings' online incorporation services will offer SB Suite's sole-proprietor member base, with a means to conveniently and cost-effectively form...
Payroll > Business Filings and SB Suite Expand Their Targeted Market Reach Through a Strategic Partnership.
The New Era of Outsourcing: Why Web-based Human Resources has come of age
? Application service providers offer a type of outsourcing that increasingly answers requirements to control and secure company data while experiencing, the convenience of minimal technical overhead.
? The hosted model allows a company to outsource the maintenance and overhead of a technology platform and software, yet maintain full control over the sensitive data and management of the process.
? According to research by Price-Waterhouse Coopers, "Total Cost of Ownership: Warning Signs of Hidden In House System Costs," companies can shave up to 80 percent of the time it takes to complete payroll simply by automating the process.
Qutsource or insource? It has never been an easy question to answer. HR directors love the security of running their systems in-house, and yet the expenses of maintaining the infrastructure, licenses and technical staff are often prohibitive. Yet with traditional
outsourcing, the potential lack of control can be a concern. In addition,...
Payroll > The New Era of Outsourcing: Why Web-based Human Resources has come of age
Employment Superconference to be Held in Orlando
Orlando, FL (ContentDesk) May 4, 2006 -- Interested in finding out about the latest in employment law?
Plan to attend a seminar presented by Zinober & McCrea, P.A., Constangy, Brooks & Smith, LLC, Jackson Lewis LLP, Retirement Plan Specialists, Inc., Zimmerman, Kiser & Sutcliffe, P.A., and Lorman Education Services, May 16th and 17th at the Radisson WorldGate Resort in Kissimmee, Florida.In this comprehensive two-day seminar, professionals will gain essential information on topics regarding employment and labor law, protection of confidential information, background investigations, maximizing productivity, building an effective handbook, and payroll tax responsibilities.
Continuing education credits are available.After completing the conference, attendees will be able to discuss payroll taxes, identify and avoid pre-employment mistakes, and discuss indicators of faulty handbook construction.Speakers for this seminar include renowned employment experts from the most...
Payroll > Employment Superconference to be Held in Orlando