Breaking the Paper Chain

Sixty-six percent of survey respondents reported using online enrollment; 17 percent reported that they still used paper enrollment forms; 7 percent used call centers; and 5 percent used integrated voice response.

Trent says managing open enrollment via the Web does require a significant investment of both time and money for companies, which underscores why larger businesses have embraced this first. Economies of scale are more readily apparent in a company with many employees, but he says, “Any company with more than 1,000 employees, or even 500—they want to pursue this.”

The Watson Wyatt survey concludes that, “[The enrollment process] has moved from being a transaction of little financial consequence to a decision-making process in which employees have a much greater stake and must be actively engaged.” Companies will increasingly use the Internet to keep their employees engaged with their benefit selections and costs.

Personalized Access 24-7

The move by larger companies to forgo time-consuming paper-based employee benefits communication and drive more control into employees’ hands is echoed by Steve Haskins, president of RAM Benefits, an employee benefits firm based in Minnetonka. Haskins says that much of his client base consists of companies in the hospitality field, such as hotels and resorts. As part of a demonstration project he put together for Trump International Hotel and Towers in Las Vegas, Haskins and his team created a dynamic Web site with a portal for each employee, to illustrate their capabilities.

On the demonstration Web site, a welcome screen incorporates a background shot of the Towers, and at the top of the screen, links allow employees to access individualized information, including their benefits, enrollment choices and options, paycheck, and human resources information. Users who click on “My Benefits” are prompted to enter a user name and password, and then enter a site that contains specific information on medical and dental benefits, insurance options, flexible spending, reimbursement accounts, and retirement plans.

Haskins says paper has no future in managing and communicating about employee benefits. “It’s dead,” he says flatly.

Some industries, such as manufacturing, may be slower to move to Web-related employee benefit management, Haskins says, but he also notes that the hospitality industry was once known for employees who weren’t computer savvy. However, as the industry’s workforce has changed and the Internet has become a familiar tool for younger workers, the demand for easier access to information is forcing change on the business.