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GANTRY GROUP STUDY REVEALS WORKFORCE ADOPTION IS KEY DRIVER OF ENTERPRISE ROI
FROM AUTOMATED BENEFITS ENROLLMENT SOLUTIONS
Enterprises using Workscape’s employee self-service solution for benefits
enrollment use paper 88.2% less and HR Line Reps 72.8% less than enterprises
with ERP solutions
CONCORD, MA (April 6, 2004) – Gantry Group recently concluded a quantitative
research study that accessed the value of third party automated Benefits
Enrollment solutions to enterprises that have deployed them. The study captured
large enterprise needs, challenges, governing business performance metrics, and
the key solution attributes that dictate high value delivery for this solution
category. Study results are published in a Gantry Group ROI white paper titled
HR Automation Solutions: Annual Benefits Enrollment. A copy of this report is
available by contacting Gantry Group.
The study reached 450 HR professionals within large U.S. enterprises (5,000 or
more employees) of which 305 had deployed an automated Benefits Enrollment
solution. Approximately 2/3 of these respondents were HR Vice Presidents,
Directors or Managers; the remaining 1/3 were responsible for the HRIS function
in their organizations. Respondents were drawn from a broad and even
cross-section of industries with an average company employee base of 24,394 per
respondent. Respondent data was analyzed by the category of solution currently
deployed (e.g. Best-of-Breed, Outsourced and ERP/HRMS) and by the specific HR
solution vendor.
“Corporate HR departments across all industries are facing a common challenge:
the need to reduce time and money spent on administrative tasks in order to
focus on providing more strategic support to the organization,” said Dale
Troppito, a managing partner at Gantry Group. “73% of the study respondents
reported the need to decrease HR administrative tasks and costs as their top
motivation for automating Benefits Enrollment processes. However, automation
success is shown to be highly dependent on employee adoption and continued use
of the self-service solution.”
HR Organizational Challenges Drive Automation
By increasing HR process efficiencies through employee self-service, HR
departments are significantly relieved of benefits enrollment administration and
can increase their attention to top strategic issues facing the enterprise.
Study respondents identified retaining, developing and rewarding top talent
(50%) as their key corporate initiative.
Today’s Top HR Corporate Challenges
The study revealed the following top findings regarding Benefits Enrollment
solutions deployed in large enterprises today:
• Rate and degree of workforce adoption is a pivotal success metric in
determining ROI. Higher workforce adoption rates of automated Benefits
Enrollment solutions clearly lead to greater ROI.
• Significant workforce adoption differences were discovered between the
Best-of-Breed category leader, Workscape, and traditional ERP/HRMS solutions
(e.g. Peoplesoft, SAP and Oracle). Workforces of Workscape’s customers use the
Web 29.7% more for Benefits Enrollment than workforces of ERP customers.
• Workforces of Workscape’s customers rely on manual paper-based Benefits
Enrollment processes 88.2% less and HR Line Reps 72.8% less than workforces of
ERP customers.
“An automated Benefits Enrollment solution is effective only to the degree it is
used – adopted – by a company’s workforce. Employees must abandon their old
reliance on paper forms and calls into HR for process guidance and plan
recommendations. Workforce adoption is the primary success metric that dictates
ROI,” added Troppito.
Automated Benefits Enrollment solutions offer an array of discrete value drivers
that contribute to the ROI equation for the project, including:
• Decrease in per employee benefit enrollment costs
• Decrease in HR staff time spent on administrative tasks
• Increase in benefits data accuracy and timeliness
• Decrease in enrollment errors
• Increase in employee satisfaction with benefits enrollment process
Enterprises are measuring Benefits Enrollment ROI through established corporate
performance metrics. Improved data quality and timeliness (59%) of the annual
benefits enrollment process is the key approach enterprises will use to assess
the success of their automation.
Top Performance Metrics for Measuring Benefits Enrollment Automation Success
About Gantry Group
The Gantry Group is the only management consulting firm specializing in
technology ROI. The Gantry Group’s ROI impact analyses are validated by primary
market research to ensure accurate capture of the real value drivers and costs.
With over 200 technology clients, 3,000 business process interviewers and
profiles in their knowledge base, and more than 1,000 ROI business processes and
value drivers modeled, Gantry offers its clients the greatest depth and breadth
of ROI experience and invaluable objectivity. Since 1997 Gantry Group has
provided ROI Calculators, Benchmark Studies, White Papers, Case Studies and ROI
Sales Training Materials for hundreds of technology companies in healthcare,
financial services, mobile/wireless and business process optimization. Gantry
Group’s client list of technology vendors includes leading IT vendors such as
PeopleSoft, McKesson Health Solutions, Thomson Media, palmOne, Xerox, Politzer &
Haney, and Best Software. For more information on The Gantry Group and the
services they provide visit
www.gantrygroup.com