Archive for the ‘Buck Consultants’ category

Highlights and Trends in the HRO Market for H1 2013: Part 2

August 14, 2013
Amy L. Gurchensky, HRO Research Analyst, NelsonHall

Amy L. Gurchensky, HRO Research Analyst, NelsonHall

Last week, I zeroed in on specific market activity within the payroll, learning and RPO service lines. This week, I’ll take a closer look at H1 2013 activity within benefits administration and MPHRO as well as provide some insights on what to expect in H2 2013 based on NelsonHall’s recent HRO Confidence Index.

Benefits Administration

Contract signings aside, there has been a plethora of activity within benefits administration in H1 2013, including:

  • New offerings:
    • Mercer launched a private benefits exchange, Mercer Marketplace
    • Buck Consultants launched an automatic enrollment offering in the U.K.
    • Secova launched a Coordination of Benefits (COB) audit offering to coordinate benefits with insurance carriers
  • Acquisitions: Wageworks acquired Crosby Benefit Systems and Benefit Concepts to strengthen its H&W administration offering, including reimbursement account and COBRA administration
  • Partnerships:
    • Fidelity partnered with Extend Health, a Towers Watson company, to provide retiree healthcare services
    • JLT Employee Benefits partnered with Vielife for health and wellbeing services in the U.K.
  • New technologies:
    • Xerox launched an account-based benefits portal, BenefitWallet, to assist with managing multiple health accounts on one platform, including HSAs, HRAs, FSAs, HIAs (health/wellness incentive accounts) and other specialized services
    • Aon Hewitt launched an absence management tool, 360 Absence Solutions, to help clients manage absence-related costs, compliance risks, the administrative burden and lost productivity
  • Educational resources:
    • Mercer and ADP both launched websites to provide information on healthcare reform
    • Ceridian launched an auto-enrollment knowledge center in the U.K.

MPHRO

In recent years, the MPHRO market has been relatively quiet in terms of contract announcements and H1 2013 was no exception. However, my last MPHRO research study, published in February 2013, revealed that the market is very much alive with new wins and contract renewals from all the major vendors, including IBM and Accenture. In fact, IBM recently won a new seven-year, multi-country MPHRO contract, which was bundled with F&A outsourcing services. Other wins include ADP and Marriott Vacations Worldwide for core HR, payroll, time & labor management and talent management covering ~9.2k employees.

Many vendors have been focused on their strategies for expansion, including Aon Hewitt with its acquisition of OmniPoint Workday Services. Although still early, NelsonHall expects ADP to make inroads in LATAM with its MPHRO services since it added RPO capabilities in this region from its acquisition of The RightThing and now expands its payroll footprint from the Payroll S.A. acquisition.

H2 2013

So what does the rest of the year have in store? NelsonHall’s recent HRO Confidence Index survey finds that overall expectations for HRO revenue growth remain at the same level as those reported for the last five quarters; with payroll leading followed by RPO. Top industry sectors for HRO services include healthcare, pharmaceuticals and high-tech. By geography, vendors have reported increased confidence for revenue growth in Central and Eastern Europe and Central and Latin America.

Needless to say, it will be interesting to see how the rest of the year unfolds for HRO.

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Countdown to the 2013 HR Technology Conference

July 29, 2013
Gary Bragar, HRO Research Director, NelsonHall

Gary Bragar, HRO Research Director, NelsonHall

This year’s HR Technology Conference, less than 10 weeks away, will be back in Las Vegas October 7-9 (please note onsite rooms are going fast, I had to stay at alternate hotels the past two years!).

With 6,000 people from 28 countries attending last year, I continue to find it an invaluable investment of my time to:

  • Attend presentations
  • View technology exhibits
  • Network with peers
  • Meet individually with companies that I do business with and others I want to learn more about.

Presentations: Session topics include:

  • Strategic View
  • Talent Management
  • Social in the Enterprise
  • Workforce Analytics and Planning
  • HCM and Workforce Management
  • Recruiting
  • Service Delivery
  • Expert Discussions & HR Tech Talks.

Be sure to check out the agenda at: http://www.hrtechconference.com/agenda.html

Highlights of just a few of the many presentations include:

  • High-Tech/High-Touch RPO: What the Doctor Ordered for Boehringer Ingelheim – presented by Corry Ioli, Executive Director, Talent Management & Acquisition, Boehringer Ingelheim and Sue Marks, CEO, Pinstripe
  • Goldman Sachs Buys RPO Eyes (and Hands) for a Quarter Million Resumes! – presented by Tom Osmond, Global Head of Talent/HCM Solutions, Goldman, Sachs & Co and Regina Lee, Division President, ADP
  • HR Tech Talks, presenters: I Come From the Water: Evolution of the Modern Manager, Kris Dunn, CHRO, Kineti; Clowns, Sharks, Anemone and HR – What Do They All Have in Common? Mary Sue Rogers, Global Managing Director, Talent 2
  • How Mobile, Social and Gamification Tools are Improving Employee Health – presented by Barry Hall, Principal and Innovation Leader, Talent & HR Solutions, Buck Consultants and Scot Marcotte, Managing Director, Talent & HR Solutions, Buck Consultants.

Whether your company has outsourced or continues to do everything internally, there are bound to be several sessions where you can learn how to improve HR in your organization and be a better business partner. When I was on the buy-side prior to joining NelsonHall, I would attend such HR conferences to:

  • Learn about the broader industry
  • Think about how our HR outsourcing contract compared to others
  • Get ideas on improvements we could make.

Technology Exhibits: Since technology is changing so rapidly, it is often difficult to keep up with new applications that are available. The conference is a great way to get exposed to a broad-range of recent innovations. You can stop by any booth and see a demo. There is no pressure and vendors are excited about their new products and services and are happy to show you more.

So here is your chance to make a difference at your organization; you might stumble onto a better, more user-friendly technology for example. Even if you are not the decision-maker, you can always tell your organization about it when you return and request a customized demo. Alternatively, if you are already outsourcing, you might see something that you don’t have and can bring it to your provider’s attention.

Network: The conference provides an opportunity to expand your network with others, including HR practitioners, buyers, providers and analysts, etc. In addition to the daytime events, there are evening socials too. HR deserves to have fun!

As a reader of my blog you are entitled to a discount. Just use the Promo Code HRO13 (all caps) when you register online at: http://www.HRTechConference.com/register.html to get $500 off the rack rate of $1,895. The discount does not expire until the conference ends on October 9, 2013.

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HRO Benefit Providers Go Exchange Wild

March 7, 2013
Linda Merritt, HRO Research Analyst, NelsonHall

Linda Merritt, HRO Research Analyst, NelsonHall

Activity is picking up again in readiness for the fall benefits enrollment season with HR benefits service providers adding various types of new health insurance exchanges (HIEs).

New HIE Entrants

Towers Watson has just launched its HIE platform, OneExchange, for employees, pre-65, and Medicare retirees. It builds on Towers Watson’s 2012 acquisition of Extend Health and offers employers both private and public exchange-based health insurance options for full and part-time employees and retirees.

Features include:

  • Support from initial financial analysis for employers, to plan comparison, purchase and enrollment, and post-enrollment support and advocacy for individuals
  • ExtendRetiree: Medicare-eligible retiree assistance to identify and select supplement health plans from the myriad of available products
  • BenefitView: real-time dashboard for employers.

Buck Consultants, a Xerox Company, launched a private HIE, RightOpt, for employers with more than 3,000 employees. The exchange will offer:

  • Both a self-funded and fully-insured model
  • Personalization based on a family’s health, adversity to risk, and preferences
  • Member education, decision-support tools, and health engagement resources.

RightOpt will complement Buck’s retiree HIE, My Medicare Advocate, and will be available for Fall 2013 enrollment.

RightOpt intends to differentiate from other private HIEs by allowing employers to use a national network of providers so employees can access the more deeply-discounted networks of providers by metropolitan area; a model that was historically too administratively complex for many employers.

New HIE Alliances

Fidelity Investments announced a strategic alliance with Extend Health, a Towers Watson Company, to provide HIE services to retiring employees to identify and select Medicare and private health care options through Extend Health.

Fidelity is also expanding its own capabilities to incorporate retiree health care into retirement planning including retiree medical account support services to plan sponsors. Examples include:

  • Recordkeeping and reimbursement services
  • Retiree workshops and meetings
  • Strategic communications expertise.

New HIE Exchanges

Those already in the market, including Aon Hewitt and Mercer, are not sitting still.  Mercer has added Mercer Marketplace, for employers with more than 100 employees, to expand its suite of private HIEs. The exchange utilizes a cloud-based technology platform with call center services and online decision support during enrollment.

Affordable Care Act Will Drive Growth and New Services

Once the final ACA regulations kick-in, there will be even more complexity for both employers and employees. Benefits providers like Towers Watson are already preparing more services to roll out including:

  • Connecting workforce segments such as pre-65 retirees, part-time, contract, and seasonal workers to plans offered on public exchanges
  • Providing financial analysis, modeling tools, and consulting to help employers decide whether to use private or public exchange solutions
  • Enabling employers to transition active employees to exchanges offering individual health plans or group-based plans.

HIEs provide many positive benefits:

  • Employers gain help in controlling cost and caring for employee health care needs
  • Employees gain access to wider choices at group discounted rates as well as advanced decisions support tools
  • Benefits providers can use existing outsourcing capabilities, as well as leverage consulting services and allied services such as Medicare, Medicaid, and the new public exchanges.

No wonder benefits provider have gone HIE wild!

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