This document discusses trends in employee benefits, payroll, and human capital management. It highlights rising healthcare costs, compliance challenges, and overburdened HR teams as key issues facing employers. Self-insurance is growing in popularity due to potential cost savings and flexibility. Integrating benefits, payroll, and HR technology is important for engagement, but current solutions are limited. The presentation introduces CBIZ Employee Services Organization as aiming to solve problems by providing financial stewardship, administrative support, and improving the employee experience through unified benefits and HR services and technology.

1. The Evolution of Benefits and Payroll Integration:
Advancing Your Options
A CBIZ Benefits & Insurance Services Program

2. Presenters
Jim O’Connor
CBIZ Employee Services Organization
Chief Executive Officer
The Evolution of Benefits and Payroll Integration2
Wendra Johnson, SPHR, SHRM-SCP
CBIZ Employee Services Organization
Chief Business Development Officer

3. Agenda
• Marketplace and Industry Trends
– Benefits
– Human Capital Management
• Identifying Best Solutions
• CBIZ Employee Services Organization
– Bringing It All Together
• Q&A
The Evolution of Benefits and Payroll Integration3

4. Marketplace and
Industry Trends
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5. The Current Employer Dilemma
• Organizations across the country just like yours are
dealing with the following issues every day:
– Skyrocketing health care costs
– Health care reform compliance challenges
– Overwhelmed human resources teams
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6. Employee Benefits Trends – Costs
• How much is health spending expected to grow?
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7. Employee Benefits Trends – Self-Insurance
• Self-insurance…rapidly coming “down market”
• Reasons to consider…
– Participate in “good” claims experience
– Risk mitigation through stop-loss insurance (specific and
aggregate)
– Cash-flow advantages
– Plan design flexibility
– Access to your plan data
– Ability to manage your own risk (wellbeing)
– Greater plan transparency
The Evolution of Benefits and Payroll Integration7

8. Employee Benefits Trends – Self-Insurance
• Traditional Self-Insured Program
– “Bundled” (insurance carrier) or “unbundled” (third party
administrator, various vendors)
– Plan administration
• Claims
• Eligibility
• Utilization management
• Disease management
• Rx formulary
– Network access
– Wellbeing programs
– Stop-loss insurance
• Specific
• Aggregate
• Reserves (“run-out,” “incurred but not reported”)
The Evolution of Benefits and Payroll Integration8

9. Employee Benefits Trends – Self-Insurance
• “Level-Funded” Programs
– Legally, a self-insured plan
– Looks like a fully insured plan
– Pay “conventional equivalent” rates each month
– Year-end accounting for potential “dividend”
– Attractive to employer not comfortable with internal budgeting
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10. Employee Benefits Trends – Self-Insurance
• Other considerations/risks with self-insurance
– Greater fiduciary responsibility
– Some additional administrative/financial management
– More decision-making regarding vendor selection
– More responsibility to “get engaged” in health risk management
(wellbeing)
– Potential increased financial risk if plan is not managed properly
– What about joining a “captive”?
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11. Employee Benefits Trends – Self-Insurance
• “Dipping your toe in”…
– Combining High Deductible Health Plan (HDHP) with Health
Reimbursement Arrangement (HRA)
• Fully insured plan
• HDHP lowers premium
• Premium savings used to fund HRA
• “Promise to pay”
• Target HRA at specific coverage areas (i.e., hospitalization)
• Limit the risk
• More flexible and better cash management for the employer than
Health Savings Accounts (HSA)
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12. Employee Benefits Trends – Wellbeing
• 60-75% of our country’s health care expenses are tied to
lifestyle/behavior risks that can be eliminated or
reduced by personal decisions
• Blood pressure, LDL cholesterol, glucose, triglycerides,
body mass index (BMI), tobacco use
• All directly relate to:
– Heart disease
– Stroke
– Diabetes
• Activity-based vs. results-based
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13. Employee Benefits Trends – Results
• Some form of “partial” self-insurance could very likely be
a more cost-effective strategy…coupled with the right
wellbeing strategy!
– “Traditional” approach with stop-loss insurance
– “Level-funded”
– HDHP with HRA
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14. Human Capital Management Trends
• Administrative burdens continue to increase
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15. Human Capital Management Trends – ACA
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Source:
 Payroll System
Purpose:
 Determine Applicable Large Employer
(ALE) Status
 Define Federal Employer Identification
Numbers (FEINs) and How They Relate
 Define Individual Employee Status
 Provide Full-Time Equivalent Count
 Track Through Measurement Periods
Source (multiple possibilities):
 Benefit Admin Systems
 Insurance Carrier Systems
 Human Resources Information
Systems (HRIS)
 Proprietary Client Files (e.g., Excel)
Purpose:
 Track Offers/Elections/Waivers
 Plan and Dependent Data
 Track Affordability
 Track and Trigger Eligibility of Full-
Time Employees

16. Human Capital Management Trends – Staff
• Doing more with less
– 2013 – 2014
• 1.3 HR professionals per 100 full-time employees
– 2015 – 2016
• 1.1 HR professionals per 100 full-time employees
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17. Human Capital Management Trends – Tech
• 125 new vendors in past few years
– HR Insurance/Benefits
– Culture and Productivity
– Applicant Tracking
– Recruitment Tools
– Recruiting Marketplace and Search Platform
– Operations Management
– Employee Perks
– Wellbeing
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18. Human Capital Management Trends – Vendors
• HR executives are generally satisfied but not often
enamored with the performance of contractors and
vendors.
– 66% of the HR executives reported that their most recent
outsourcing initiative ‘‘met expectations’’ for improvements in
service quality, with only 11% reporting that the contractor’s
performance ‘‘exceeded expectations.’’
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19. Benefits + Technology = Engagement
• 78% of workers base their acceptance or rejection of a
job offer in part on the benefits package
• 33% of companies emphasize benefits to recruit highly
skilled employees
• 9% of companies say employees are very knowledge-
able about their benefits
• 5 generations are in the workforce today (all present
unique employee communication and experience needs)
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20. Identifying Best Solutions
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21. Identifying Best Solutions
• Endless consultants and vendors, but limited unified
solutions
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The Evolution of Benefits and Payroll Integration

22. Identifying Best Solutions – Where to Start?
• Self-identification – current and future state
– Small, medium, large organization
– Growth mode, geo-dispersed, industry requirements
• Workforce demographics
– How will you communicate across generations
– Need for self-service or vendor support
• What challenges are most pressing or concerning
– Too many systems and vendors to manage
– Improving integration and workflow
– Cybersecurity and protecting the data
The Evolution of Benefits and Payroll Integration22

23. Identifying Best Solutions – Where to Start?
• Map out or revisit 3- to 5-year plan
– Benefits, core and nonmedical, wellbeing
– Recruiting and onboarding
– HRIS, payroll and reporting needs
– Compliance
– Additional resources or access to industry experts
• Technology
– System orientation (open architecture; one solution)
– Integration and workflow options
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24. Why CBIZ Developed
Employee Services
Organization
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25. Evolution of an Industry
• CBIZ created CBIZ Employee Services Organization to
solve those issues and many more.
25 The Evolution of Benefits and Payroll Integration

26. Evolution of an Industry
• Benefits expertise integrated with efficient HR
technology that simplifies the entire employee life cycle.
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Financial stewardship
Administrative support
Employee experience

27. Financial Stewardship
Efficiently managing your employee benefits costs
– Expertise in negotiations
– Buying power
– Creative solutions
– Wellbeing solutions
27 The Evolution of Benefits and Payroll Integration

28. Administrative Support
Making your HR team’s job easier
– Eliminate unnecessary paperwork
– Manage the employee life cycle in one platform
– Create action-oriented roadmaps to success
– Utilize online enrollment
28 The Evolution of Benefits and Payroll Integration

29. Employee Experience
Engaging your employees and enhancing their
overall experience
– Manage your employee communications and
education
– Integration of human-based and tech-based
approaches
– Claims advocacy for your employees
– Wellbeing programs that address the “whole”
person
29 The Evolution of Benefits and Payroll Integration

30. CBIZ ESO
• Smart People. Smart Technology.
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31. The Evolution of Benefits and Payroll Integration31
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