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Getting more from the Benefits Module in SAP SuccessFactors Employee Central

by Vijay K & Sarayu Raghavan, 20 June,2016

Does your organization hire an in-house masseuse to help you relax just after you’ve had a really exhaustive day at work? – does that sound a little too exotic? While I’m certainly aware of companies that provide this as an allowance, let’s look at an employee benefit that sounds a bit more realistic. How about paid-education – according to a recent report by PWC, the millennial generation is committed to their personal learning and development and this remains their first choice of benefit from employers. In an effort to retain their best talent, several companies have out together an entire menu-card of benefits for their employees to choose from. However, most often than always, they are left disappointed to find that employees are often unaware of the benefits on offer or worse do not use it because they think it is complex to apply for.

SAP SuccessFactors Employee Central (EC) comes with an easy-to-use Benefits module, which allows HR admins to easily configure benefits on SAP SuccessFactors to help employees to use the benefits quickly and easily.

In this whitepaper, we offer insight into:

  1. Different benefit types with examples
  2. How to setup custom benefits in EC
  3. How you can create visibility for the benefits within EC

The Benefits Module in Employee Central

Benefits in SuccessFactors Employee Central are organized into 7 broad types:

COmponent

Figure 1–The 7 categories of Benefits in SAP SuccessFactors Employee Central

 

A brief explanation of the types of benefits with examples

Table

Workflows can be configured for all benefit types for both “Enrolment” and “Claim”. Benefits like Birthday gift (Australia) can be configured for auto enrolment based on Employee’s birthday on the system which can also be regulated by initiating a workflow.

SAP SuccessFactors Employee Central benefits are country specific and some are pre-configured for example a Christmas Gift for Brazilian employees as shown below –

Table 2

Figure 2 – Benefits screen for an employee showing current enrolled benefits, claims and eligible benefits for enrollment (Country specific Benefits – Brazil)

Eligibility for a benefit can be further controlled by setting up rules to identify employee groups that are applicable: e.g. under a certain age group or employees who have served X months in the company, using business rules. This ensures that the benefit is available only to those employees who qualify

Creating custom benefits in SAP SuccessFactors Employee Central

Since the benefits module is based on Meta Data Framework (MDF), it is easy to create custom benefits that are unique to your organization. Your administrator (or anyone with the right privileges) can help set it up in 9 steps as outlined below –

9 steps

 

How can organizations make the benefits more visible to employees?

  • Publicity Plan : Create a publicity plan – Build a custom portlet and time it to specific groups of employees, so that they see it when they login.
  • E-mail Reminders : Send emails with auto-enrollment workflows, so that employees can be automatically enrolled in things like a health check or a free dental check-up.
  • Auto-enrollment : Mandatory benefits can be auto-enrolled for employees.

Creating reports in the benefits module

You can build reports using Employee Central to track enrolment, pending signups that help you “nudge” employees to use the benefits. Reports can be created using Online Report Designer (ORD). A few sample reports below –

Reports

Figure 6 – Sample SAP SuccessFactors Employee Central Benefits Reports in System

How can Neeyamo help you with benefits for Employee Central?

The Neeyamo Consultants can help you design and administer Benefits effectively. We take work out of managing benefits by providing custom reports for internal analysis and government compliance at your fingertips.  The visibility of benefits data has a lot of compliance norms- We use the Roles Based Permissioning framework to keep a check on the information visible to employee, approver, and auditor. To run a simple yet effective Global Benefits – please reach out to irene.jones@neeyamo.com.

 

 

 

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3 Game Changers in Benefits Administration

Employee Benefits Administration

The right kind of compensation strategy and structure that befits the organization and its employees is indispensable.

by Biju Chandramohan  on 8 Aug ’14

Health benefits or benefits in general helps employees feel secure and be at their best on the job. The difficulties as far as benefits administration goes are faced by the employers. The Affordable Care Act along with the economic growth is poised to change and challenge the way employers approach employee benefits.

Outsourcing non-core activities has become a competitive corporate strategy and is viewed by many as the most advantageous means of accomplishing their business objectives. As per a survey conducted by HRmarketer.com, about 36% of the organizations identified compliance as their single most important issue when it comes to Benefits Administration. This isn’t surprising given the sheer complexity of the health care reforms. About 30% of the organizations wanted to reduce their administrative costs and 19% of the organizations wanted to increase the employee self-service technologies.
Given these pain areas, the three game changers in Benefits Administration that can make a serious mark are:

  • Compliance as a Service
  • Low-cost Delivery of Benefits Administration
  • Private Health-Insurance Exchanges

Compliance as a Service (CaaS): It is an ongoing challenge, in the Benefits landscape to stay compliant with the ever evolving laws. Organizations need to setup compliance teams to help identify immediate risks and assist in building compliance. Compliance assessment will be the need of the hour to assess and mitigate risks and resolve immediate issues. The compliance services teams will also be involved in monitoring the laws, regulations, related to Affordable Care Act, COBRA, HIPAA, ERISA, USERRA, etc. Many HR professionals describe healthcare reforms as the single biggest challenge given the multitude of changes that an HR professional needs to absorb. The penalties that pop up as a risk due to compliance violations compound this. Companies are keen to transfer the risk to the outsourcing firms and therefore the need for CaaS

Low-cost Delivery of Benefits Administration: According to study done by Sourcing Analytics, the cost of performing benefits administration in-house is nearly 18% higher than outsourcing. And from our experience offshoring major chunk of administrative work could see organizations save up to 50% in Cost. Organizations are constantly looking to evaluate the performance of their corporate functions with regards to cost. Administrative cost reduction is top priority for most organizations, despite the multiple factors like aggressive rate of healthcare or the financial pressures that economy continues to place on organizations.

Systems that support Private Health Insurance Exchanges: The private health insurance exchange enrollment is projected to reach 40 million people by 2018. This is a great opportunity to set up intuitive private exchange systems. The best systems can integrate multiple insurance programs, from subsidised programs to individual, family, and group plan coverage. These private exchange platforms provide guidance on how to make the best health coverage decisions. Money will thus be saved by the employer and employees. This will be one of the biggest game changers over the coming months.
With health care compliance risk looming high, more and more companies want to reduce their administrative cost and these are a few strategies that could be your winning formulae.

Write to irene.jones@neeyamo.com, to set up a time with our Benefits specialist, who can assist in mitigating your compliance risk and reducing administrative cost.

References:http://www.hrmarketer.com/users/clients/secova/SurveyReport. http://www.winstonbenefits.com/The-Employee-Benefits-Blog/bid/121639/Justifying-Outsourcing-Benefits-Administration-Services-to-Your-CFO