The promise of benefits technology

eHR: The evolution from self-service to self-management

To most people, there may seem to be little difference between the phrases “self-service” and “self-management.” However, in HR terms, these expressions are two distinct points on the eHR evolutionary scale.

Initial forays into eHR involved employee benefit self-service. This meant having employees perform functions previously done by HR staff, such as recording address, dependant and beneficiary changes. Technological advances now make it possible to go a step further to employee benefit self-management.

Self-management benefits everyone

Self-management entails providing employees with the information they need to make decisions, along with the tools to implement them. These tools are increasingly Web-based, enabling employees to obtain information and make choices independently. They have immediate access to a “virtual HR” department, often around the clock.

HR professionals reap the benefits of a technology that liberates them from tedious and time-consuming tasks. This “freedom” enables them to pursue a more strategic role in the organization.

Aside from the benefits for HR personnel, there are several reasons the move towards benefit self-management makes sense for employers:

•lower communication costs, especially for printing;

•streamlined administrative processes;

•reduced call centre volume;

•improved employee data accuracy (since employees can review their own data regularly);

•better employee benefit plan knowledge (increased awareness of the benefits actually offered); and

•better decision-making on the part of employees.

Obstacles to self-management

Just because self-management seems like a good idea doesn’t mean it is easy to implement. HR professionals frequently anticipate employee resistance for one or more of the following reasons:

Access: employees may not be able to use the self-management tools because they don’t have Internet access at work or aren’t proficient at using the Web.

Anxiety: employees may fear technology or might not trust self-management tools.

Awareness: employees may not know that self-management tools exist or be aware of their full capabilities.

In fact, experience has shown that only this last factor is a real roadblock to employee self-management. With regards to access, both employers and employees have come up with innovative solutions, even in companies where as many as half the workers don’t have Internet access at work. Employees have self-managed their benefits via at-home Internet access or have sought out access elsewhere. Employers have provided Internet kiosks in central work areas, computer training or discount Internet server provider arrangements for employees.

As far as anxiety goes, the group often expected to be most resistant to self-management — older employees — is actually the fastest growing online segment of the population.

Certainly anxiety can be a real deterrent to self-management, but HR professionals must ensure that they are not projecting their own anxiety on to employees. Electronic HR revolutionizes existing human resources practices and mandates a re-examination of HR’s role. HR personnel must focus on being more strategic in creating the success of the eHR program and entrenched routines should be reconsidered to ensure they are not hampering self-management initiatives.

Increasing awareness

It thus appears that the major obstacle to employee benefit self-management is awareness. Electronic HR initiatives are not necessarily a “build it and they will come” venture, so HR professionals must form a strategy to ensure success.

Employees need to clearly understand what the new technology will allow them to do and how it works. An employee benefit self-management system enables employees to:

•become knowledgeable about their benefit options;

•ask questions and receive personalized answers to help them make good choices;

•enroll online for benefits in real-time transactions;

•review benefits coverage data and make changes; and,

•receive e-mail notification when action is required.

Taking self-management one step further, the latest trend is towards total compensation reporting. At any time, employees can get an online “snapshot” (in chart form, for example) of their complete pay and benefits package.

Employees gain a greater appreciation of their total rewards and employers often find this knowledge leads to greater employee engagement, which gives them an advantage in the challenging areas of recruitment and retention.

Once employees are informed of what they’ll be able to do with the new technology, they need to learn how to use it. The training initiative taken will either heighten or decrease any employee anxiety.

Effective communication on the initial roll-out campaign is essential so that employees realize the new technology is easy to use.

Guidelines for effective self-management implementation

Aside from the specific and crucial requirement of making employees aware of what self-management involves, there are other steps HR professionals should take to make the transition to an online environment as smooth as possible.

Articulate clear goals: Communicate self-management goals to employees and specify what channels you’d like them to use from now on. Make clear what practices are ending and what the new ones are.

Be willing to “walk the talk”: Align actions with self-management goals. Consider limiting call centre access or advising call centre personnel to direct employees to the Internet. If employees are still unwilling to take a more active role, consider motivating them with a contest or other incentive.

Align communication strategy with your goals and delivery approach: Communicate in a way that’s consistent with self-management goals. Define your game plan for success and follow through. If you want employees to self-manage, then don’t do a lot of hand-holding or use a lot of paper.

Make sure senior management is on board: Employees will make the transition to self-management more quickly and easily if they hear consistent and encouraging messages from all sources.

The evolution of eHR is constant. However, the end result is always to make the work experience a positive one for employees, increasing their engagement and commitment to the company.

Steve Welkie is the business leader of Hewitt Associates’ Canadian outsourcing services and Brent Williamson is a consultant in Hewitt’s benefits administration practice. Both work out of Hewitt’s Toronto office and may be contacted at (416) 225-5001. Portions of this article originally appeared in Hewitt Associates’ Hewitt Magazine, Volume 4: Issue 2, www.hewitt.com. Reproduced with permission of Hewitt Associates LLC.

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