Leveraging Data in All Aspects of Benefit Designs

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Leveraging Data in All Aspects of Benefit Designs
Speakers Ron Krupa, Gevity Joanne
Armenio, Kraft Nancy Lazgin, Staples
Moderator Lori Dustin, HighRoads
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HighRoads Overview

• The new way to manage HR programs and suppliers
• Replacing manual labor-intensive process with
• technology-enabled service
• 21M invested to date in technology
• Hosted, web-enabled application
• Customers include 20 percent of Fortune 500
• Experienced management team
• Headquarters - Woburn, MA
• Offices Ottawa, Canada, Chicago, Washington DC
• HR Executive Magazines Top HR Product of the
  Year (2006)
  
• MITX HR product of the year (2006)
• Acquired MHS Advisors in 2008

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Controlling Benefits Costs is a Top Priority

• 2000 71
• 2003 86
• 2006 91
• Source Deloitte Consulting Top Five Total
  Rewards Priorities Survey, 20002006.

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The Challenge Need to Do More with Less

• Employer benefit costs continue to rise at an
  unmanageable pace
  
• Data located in disparate locations and in
  different formats
  
• Compliance pressures extend to HR
• HR supplier optimization is often neglected or
  non-existent
  

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The New Way of Managing HR Programs
Contracts
SPDs
Renewals
Suppliers
Procurement
Global Data
HighRoads One System of Record
Dashboard
Benchmark Data
Reporting
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Gevity HR

• Providing small and mid-sized businesses with
  comprehensive and competitively priced human
  resource services and benefits packagethat lifts
  the heavy administrative burdenallowing them to
  focus on managing their business more effectively
  
• Founded in 1984
• Public in 1997
• Pioneered the Professional Employer Organization
  (PEO) industry
  
• Focus on businesses with 20 to 500 employees
• Nearly 200 HR Consultants in more than 35 field
  offices
  
• Most SHRM certified HR Consultants
• More than 6,000 clients and over 100,000
  co-employees
  

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Ron Krupa, Director Benefits Management

• More than 20 years of benefits experience
  including consulting and plan sponsor roles
  
• Responsible for product and strategy for Gevitys
  HW plan covering 75,000 eligible employees,
  along with benefits communications and carrier
  relations
• Active in International Society of Certified
  Employee Benefits Specialists including local
  chapter leadership roles

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Gevity - The Challenge

• Improve data management
• Track the annual renewal process
• Utilize renewal data efficiently when populating
  communications documents
  
• Create comparisons to competitor data quickly and
  easily for sales

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Gevity - The Solution

• Use HighRoads to facilitate the annual renewal
  cycle
  
• Use data collected via renewal activities to
  populate communications materials
  
• Use all data collected (Gevity as well as
  competitor data) to make strategic decisions
  while supporting the business
  
• Mitigate loss of key employees by having critical
  data captured in central location

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Gevity The Results

• Auditable renewal process
• Repository for all data, final versions easily
  located
  
• Data is readily available for multiple purposes

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Kraft Foods

• Our vision is simple Helping people around the
  world eat and live better
  
• The Brands You Know and Trust - More than 50
  brands with revenues of 100 million
  
• Employees 104,000 worldwide
• Operations
• Approximately 159 manufacturing and processing
  facilities in over 72 countries
  
• Net revenues of 34 billion
• Spun off from Altria March 30, 2007

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Joanne Armenio Director, International Benefits

• 10 years with Kraft Foods
• Responsible for a wide variety of US benefits
  including strategy and vendor management of the
  401(k) plans, employee communication (print and
  web design), Canadian benefits, mergers,
  acquisitions, sales and closings.
• Responsible for the development of Krafts
  international benefits strategy in approximately
  70 different countries and works closely with
  Krafts regional Compensation Benefits teams.
  
• Responsible for strategic benefits support for US
  collectively bargained facilities, mergers,
  acquisitions, sales and closings, all aspects of
  benefits in Canada and expatriate employee
  benefits.

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Kraft - The Challenge

• De-centralized global data
• No technological process for collecting and
  analyzing data
  
• Lack of standardized data formatting
• Internal resource constraints
• Minimal cross collaboration with global
  consultants
  
• Ad-hoc management requests

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Kraft - The Solution

• Collect, develop, and refine data and strategies
  for global benefit programs
  
• Conduct audits and reviews of global and regional
  employee benefits programs
  
• Address requirements for Sarbanes-Oxley Sec. 404
  regulations
  
• Consolidate information to analyze new employee
  benefits strategies such as multinational
  pooling, statutory compliance (private vs. public)

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Kraft - The Results

• 66 HR associates, the global broker, and the
  global actuary all collaborate together
  
• Gain insight into the costs, scope and
  effectiveness of benefits programs
  
• A one-stop database of all documents and data,
  where information is uploaded, stored and
  analyzed
  
• Document workflow for full user control and
  audit trail
  
• Comprehensive analytical tools and reports,
  conducting side-by-side comparisons between
  benefit plans and suppliers across different
  countries

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Staples

• Staples, Inc., the company committed to making it
  easy for its customers to shop and/or order a
  wide range of office products, including
  supplies, technology, furniture, and business
  services. To make this happen, Staples employs
  over 74,000 talented associates worldwide.
• With 2006 sales of 18.2 billion, Staples serves
  consumers and businesses ranging from home-based
  to Fortune 500 companies in 22 countries
  throughout North and South America, Europe and
  Asia. Headquartered outside of Boston, Staples
  operates approximately 2,000 office superstores
  and also serves its customers through mail order
  catalog, e-commerce and contract businesses.

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Nancy Lazgin, Director, Global Benefits

• Has been with Staples for over 10 years
• Sets global benefits strategy and coordinates
  sourcing for all associates in 22 countries
  
• Directly responsible for domestic benefit
  sourcing, vendor and performance management as
  well as benefit design, implementation and
  ongoing associate education and engagement
• Champion of a healthy workforce for today and
  tomorrow

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Staples - The Challenge

• Ensure integrity of document and data management
  
  
• Over 300 documents for 65 suppliers
• Reduce RFP time, improve quality (input and
  output) and source more broadly
  
• Improve supplier management
• Demonstrate internal control and value
  proposition of suppliers selected to senior
  leadership

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Staples - The Solution

• Store all benefits-related content in a central
  location where it could be used and updated
  during the entire benefits lifecycle
  
• Automate labor-intensive tasks and streamline
  day-to-day operations
  
• Streamline the evaluation process
• Have an inventory of RFPs with NDAs and PGs
  for future use or retrospective review
  
• Set up and monitor a supplier's adherence to
  contract and performance guarantee terms.
  

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Staples- The Results

• Reduced cost of benefits plans
• Expedited development and evaluation of RFPs
  and/or renewals
  
• Met legal and audit controls
• Validation made easy for senior leadership

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Take the HighRoads Test

• Are you spending enough time on strategic
  initiatives?
  
• Can you quickly find all the information you
  need?
  
• Is your HR consultant spending too much time on
  your tactical work?
  
• Do you have a benefits system of record?
• Can you easily measure supplier performance?
• Does your benefits management program meet
  compliance guidelines?
  
• Is your HR/benefits program aligned with your
  companys business goals?