Technology moves fast, especially in the world of employee benefits administration. With a continually evolving legal landscape, your clients and their human resources (HR) teams face complex challenges when administering benefits and remaining compliant. Good investments in benefits technology can be a crucial first step to support the experience and productivity of their workforce.
But what does all the tech jargon mean? The terminology can be just as difficult to keep up with as the pace of technological change.
What Is HR Technology?
Human resources technology, or HR tech, is software or other digital tools that are integrated into a company’s current HR management systems. It helps automate key functions usually performed by your clients or their HR teams, such as benefits enrollment, absence management and payroll. HR tech supports your clients’ workforce by reducing manual work and errors, clearing the way for HR experts to focus on what they do best.
With connections to more than 160 HR technology platforms, The Hartford has the experience and consultative expertise to support your clients along their journey to flexible, integrated solutions for their HR and benefits administration needs. We’ve compiled some of the key HR tech terms and phrases you and your clients should know:
The Language of HR Technology
Artificial Intelligence: AI enables a computer to think and make decisions that normally require a human. Computers perform these functions by studying massive amounts of information to predict patterns. AI can support your clients’ benefits administration needs by quickly completing routine, time-consuming tasks that typically require manual input, while reducing errors.
Application Program Interfaces: APIs are rules or protocols allowing two systems to “talk” to each other and exchange data in real time, even if those systems or applications are not specifically designed to work together. The Hartford employs several APIs, working with different technology platforms, to support the digital user experience and synchronization of employee benefits enrollment and other administrative tasks. If these functions were completed manually, there could be an increased risk of errors and inefficiencies.
Electronic Data Interchange: EDI, in the context of employee benefits, is a file feed. It is the secure, digital transfer of a “point-in-time,” batched snapshot of eligibility data from one computer to another. Like an API, it helps replace your clients’ paper-based transactional approach with a digitized, automatic exchange of data between two computer systems. In this case, an EDI can securely transfer employee eligibility and benefit data from an employer (or benefits administrator) to their insurance carrier like The Hartford.
A reverse file feed is an EDI that can transmit decisions on eligibility for a claim or leave event from the insurance carrier back to the employer. EDIs remain an important alternative to an API. They save your clients time and money by removing the need to pay someone to send the requested data. Our team of technology consultants can help your clients identify the right solution for their company based on their long-term goals and the systems already in place to capture their data.
Evidence of Insurability: EOI is documented proof that an individual is eligible for insurance coverage. It’s typically a health questionnaire that the member completes for additional life insurance coverage above the guaranteed issue (GI) limit. Questions include whether the individual is a smoker or has a history of cancer, high blood pressure or recent hospitalizations.
The Hartford offers an easy and simple online experience for applicants to complete this health questionnaire. In most cases, applicants receive a medical underwriting decision in real time. If additional review is required by a medical underwriter, we offer a simplified experience for applicants that does not require a lab exam.
Human Capital Management System: HCMS refers to the digital tools (such as applications, systems and technology) that support an organization’s ability to manage its workforce. A cloud-based software suite like Workday is an example of an HCMS that supports your clients and their HR professionals with data, analytics, engagement, talent acquisition and retention, and key analytics that can help maximize your workforce.
It’s important to recognize that not all digital employee benefits technology solutions will be compatible with your clients’ HCMS. Refer to The Hartford’s list of platform capabilities para obtener mayor información.
Integration: This is the incorporation of digital tools to better align your HR-focused data and processes. Integration could come in the form of an API (where two systems can exchange data to provide real-time updates on managing leaves or payroll), an EDI or a single sign on.
Single Sign On: SSO is an authentication method where a user can access multiple systems with one login credential. With an SSO integration, your clients can run their business effectively by smoothly transitioning from system to system on one HR tech platform. They can access reports, data and various other functions without continuously having to sign in with multiple usernames and passwords.
We Make HR Tech Simple
As the employee benefits market evolves and technology continues to rapidly transform, working with a consultative expert like The Hartford may be key to your clients’ success. We can help them navigate the complexities of benefits technology to make administration and enrollment easier for everyone.
For more information about our HR technology solutions, contact your representative at The Hartford.
