HR operations management growing increasingly challenging

Rising benefit costs are #1 challenge faced by US employers

Employers’ benefits costs have risen 24% since 2001

Your primary directive for Human Resources is to attract qualified applicants and retain valued employees. A comprehensive benefits package is crucial to achieving that objective. However, rising costs threaten Human Resources’ ability to provide those benefits.

Proper vendor management can:

  • Maintain benefit levels without shifting costs to employees.
  • Retain existing vendor relationships
  • Improve vendor performance

From 2001 to 2015 the total cost of employer-provided benefits rose from 14.8% to 18.3% of pay, now the 2nd largest expenditure for most organizations

Mercer survey shows employers face 4.3% increase in 2018 US health benefit cost, highest since 2011

Companies say one of their primary goals is to manage health benefits costs more efficiently

Most employers have responded with primarily short-term tactics

  • Conventional approaches to dealing with annual increases – incremental cost shifting through plan design changes and increased employee contributions – have failed to stem rise in costs
  • Many employees are reaching the limit of how much they are able to pay for healthcare benefits
  • Rising costs threaten HR’s ability to provide competitive benefit package – endangering HR’s ability to attract qualified applicants and retain valued employees


  • Retirement plan sponsorship today entails more challenges than ever before
  • Changing regulatory landscape and compliance requirements
  • Increasing pressure for full transparency on costs related to plan expenses
  • Complexities in efficiently managing multiple vendors


  • Organizations face multiple problems with efficient adoption and integration of HRIS systems
  • Inefficient vendor management and systems integration resulting in unnecessary costs
  • Compromised data integrity
  • Complexities in promptly responding to and troubleshooting vendor challenges
  • Challenges in aligning vendor agreements with overall business and HR goals


  • 70-90% of M&As fail with reasons often attributed to HR related factors
  • Insufficient oversight and integration within the workstreams from payroll and benefits to HR technology and platforms
  • Challenges with transitioning data
  • Inadequate communication between HR and other workstreams across company
  • Slippage in schedule for executing HR’s deal work and insufficient HR resources