How to remedy the pains of multiple point solutions in benefits programs
Need help handling the pains from too many vendors and point solutions? Here are tips for resolving the issues with a holistic benefits program.
Managing multiple point solutions puts added pressure on HR
The pace of today’s world and all of the recent changes have caught up with human resources. From the pandemic to inflation and the potential economic downturn, HR staff have been riding a roller coaster of seemingly endless changes over the past few years. As a result, they are overwhelmed and overworked.
Over 40 percent of respondents to a 2021 SHRM survey of global HR leaders said they had too many projects and too few staff to complete them. In another recent survey of 1,000 HR leaders, 98 percent said the pandemic has transformed their role and 70 percent said this has been one of the most challenging years of their career.
Despite managing numerous new challenges, HR staff must also continue to carry out the traditional tasks of their roles. Running a successful and attractive employee benefits program is a top priority since it can help companies attract and retain top talent in an uber-competitive hiring market.
Unfortunately, the responsibility of administering employee benefits has become even more burdensome in recent years: Legacy software systems that are supposed to ease the burden are outdated and cumbersome. Employees require many new and individualized benefits to mirror their diverse lifestyles. And a hodge-podge approach to modernizing benefits has resulted in the need to manage multiple vendors. These are just some of the reasons that HR staff are facing what is known as point-solution fatigue.
What is point solutions fatigue?
Point solutions fatigue, which occurs when HR professionals become overwhelmed managing the multiple vendors behind an organization’s total benefits program, is real and puts unnecessary pressure on both employers and employees.
Most companies are already aware of the need to incorporate choice, personalization, and flexibility into their benefits programs. They understand that benefits must meet the employee where they are and that, means something different for each individual. Modern employees now seek more robust plans that cover quality-of-life expenses like wellness, childcare, education, disability, leisure—the list goes on.
However, as demand for more flexible benefits rises, the methods for procuring and administering plans have fallen short. Many additional benefits have been added on a piecemeal basis, with employers choosing individual vendors for each one. The result? An unprecedented level of stress for HR departments known as point solution fatigue.
Benefits teams are struggling to keep up with demand. These team members spend an enormous amount of time on vendor communications, negotiations, education, and relationship management. In fact, researchers found that 60 percent of employers felt overwhelmed as the complexity of managing their benefits programs increased year over year. Firms with more than 100 employees struggled most regarding new coverage options, changing carriers, and communicating available benefits to employees.
Point solution fatigue isn’t limited to benefits managers. Employees also feel overwhelmed by the various vendors and points of contact for their benefits. When inundated by too many vendors, they may not understand the full scope of their benefits, what’s available, or even how to file a claim.
The advantages of benefits spending accounts as a holistic solution
With four generations often working in the same organization, each demographic has needs unique to their situation. Millennials and Gen Z team members might seek student loan repayment plans and 401(k) plans while Gen X and Baby Boomer employees may want better retirement options and healthcare.
Diversifying your benefits options can help you meet all your employees’ needs. When employers show they care about their team’s well-being, employees feel appreciated and heard. According to the World Economic Forum, employers who care about the well-being of their workforce can expect a more productive team in the long run.
However, it’s key that you contain these options in one platform to avoid point solution fatigue. Organizations need a streamlined way of planning and rolling out the benefits that meet the diverse needs of today’s workforce. Opting for a technology-driven approach to get the most out of your employee benefits packages is a trend that many modern companies have already taken advantage of.
A recent benefits trends survey from WCW found that modern employers understand benefits programs work as a compelling attraction and retention tool. When they couple those benefits with a streamlined digital management tool, organizations position themselves to offer highly competitive packages. At the same time, they work to combat point solution fatigue, while attracting top talent to their company.
The automation trend is hard to ignore, as 81 percent of organizations have turned to automation to complete tasks and processes; experts foresee that number jumping even higher to 92 percent in 2023.
Leveraging a streamlined digital benefits tool is crucial to staying ahead in highly competitive industries. These platforms solve two major problems with modern employee benefits: using employee spending accounts, they condense dozens of vendors into one concise program and alleviate the administrative burden facing HR professionals. Ultimately, they help your organization achieve marketplace positioning, increased productivity, and recruitment and retention.
At the same time, employee benefits platforms make it easier for your team members to access the benefits available to them and use them in their daily lives. They can discover and select personalized offerings that meet their needs instead of feeling alienated by benefits that don’t apply to them. Once selected, the claims process becomes second nature with pre-programmed debit cards that work just like their personal credit/debit cards.
With employee benefit platforms, organizations can cover practically every benefit under the sun. From family and relationship benefits to retirement savings and commuter subsidies, providing your employees with benefits relevant to their lives is crucial to maintaining a dedicated workforce.
Introducing Forma: An ultra-customizable spending account system for all your benefits programs
While it’s essential that you offer flexible and customizable employee benefits, you can’t just lay the full administrative burden at HR’s feet. Doing so inevitably leads to point solution fatigue, adding to the entire department’s stress. Instead, consider a comprehensive benefits management platform like Forma to keep all your employee benefits centrally located.
With Forma, you can select from a variety of benefits programs to meet the needs of your diverse workforce. In turn, your employees are free to build a plan that works for them, drawing on a curated marketplace of pre-vetted vendors. Gone are the days of collecting and processing claims and loose receipts. Forma’s debit cards and online marketplace streamline the process, making it easy for employees to get the most out of their benefits from day one.
Get in touch with Forma today and curb point solution fatigue with our all-in-one benefits management platform.