Then you say… “And here is our benefits enrollment module that drives deductions in payroll and interfaces with your broker and insurance providers. All of this ensures that we can produce timely and accurate ACA reporting for you.”
Sound familiar? If you’re a forward-thinking payroll provider striving to be competitive in a market with rapidly changing lines between services, processes, and solutions, then the answer is likely a resounding “yes”. Ten years ago, time and attendance and human resources (HR) may have been ample offerings to stay ahead of your competition, but not anymore.
The new frontier for payroll companies is benefits.
Benefits are a fact of life
More than five years into healthcare reform, benefits are a part of payroll companies’ lives whether it has already affected your company or not. Benefits are driving key payroll deductions, but they’re a nightmare to manage without the benefit management capabilities that drive these deductions. Affordable Care Act (ACA) compliance needs are also causing clients to seek assistance from payroll companies – one example being generating 1094 and 1095 forms during year-end. The continuous market demand towards the “one-stop shop” is further fueling the convergence of payroll and benefits. These are just some of the major reasons that are causing payroll companies to expand the boundaries of their thinking, services, and solutions to adopt benefits.
What does that mean for the industry?
Facing both increased demand from clients and competition from major providers in the market, some payroll companies have explored becoming insurance brokers. On the other hand, some insurance brokers are starting to add payroll to their toolkits in order to stay competitive and meet their clients’ demands. Others start to explore new engagement models and referral partnerships between payroll companies and insurance brokers to find balance in the changing ecosystem. All of these changes mark the end of an era and are signs that status quo thinking is no longer a viable option.
What does it mean to you?
As a payroll company, you can no longer afford to be a silent observer. Now is the time to ask the right questions and engage with the right partners to turn this disruption from a liability to an opportunity so that you can take your organization to the next level. Are your clients and partners concerned about benefits and compliance? Do they know who they can turn to for answers? Is your current toolkit sufficient to meet their demand? Are you leveraging new tools and technologies available in the market today? Understanding what customers and prospects are looking for is the key to realizing what benefits opportunities are out there and are paramount to positioning yourself as your clients’ trusted advisor for their employer service-related needs.
The payroll industry is in the midst of another fundamental shift, whether or not payroll companies realize the changes that are already happening around them. The ability to offer benefits technology and services can ultimately be a key factor in choosing your payroll company over the competition. With clients and prospects beginning to expect benefits-related products and services from their payroll provider, you need to give them what they want!
If you have any questions or are interested in learning more about benefits solutions like carrier connection, COBRA administration, 401k integrations, and more, we’d love to discuss how we can help your payroll company stay ahead of the competition with benefits.