Self-Service Benefits-Management App Has Its PerksSelf-Service Benefits-Management App Has Its Perks

It's a classic case of the shoemaker's kids going barefoot. Financial-services company Cuna Mutual Group, comprising seven companies, provides online employee self-service benefits management for its member credit unions. But until last month, Cuna didn't provide that service to any of its 5,000 employees. Their benefits information was handled through an annual mailing--25 different mass mailings, each to accommodate distinct business units. And that was just in preparation for the onslaught of confused callers that, as sure as Christmas, come each December.

Going to an online operation would let employees access their benefits options, get answers to typical questions, and manage benefits online, anytime.

The first step, recalls Paul Hauschen, HR administrator, involved benchmarking. HR consulting firm Cedar Group US ran a cost-benefit analysis using Cuna's metrics. The numbers looked promising: cycle time cut in half, 60% reduction in cost per transaction, 75% decrease in employee inquiries to HR staff, and employee satisfaction doubled.

Initially launched as a department project, the company's executive leadership team took a look at the project and gave it its imprimatur. "That elevates the effort," says Hauschen. "We're looking at this as part of our overall B2E business-to-employee effort." Cuna may be in good company this year. The HR firm Watson Wyatt, in its top 10 HR trends for 2002, includes employee self-service as an area that will be heating up. Cedar Group pegs the market at $3 billion and likely to continue growing.

Cuna bought a preintegrated version of Authoria HR 3.0 and PeopleSoft 8. Authoria CEO Tod Loofbourrow says Cuna is its first customer to buy the preintegration version. Authoria handles all the information, queries and content; while PeopleSoft Inc. runs the transactions.

Cuna has just completed its first eight-week open enrollment under the new system, and Hauschen is pleased with early returns. Besides a thousand employees signing on in the first week alone, HR has already saved $8,000 in printing and production costs. HR staff is spending less time answering employee questions. One of the most popular features lets employees create their own personal benefit-plan comparison, so they can make an online enrollment decision.

At an installation cost of around $330,000, Hauschen expects the software to pay for itself within a year, and save $2.3 million in employee and productivity gains over five years.

This year, Cuna plans to continue rolling out more self-service applications, some through Authoria HR and PeopleSoft, and some independently. The 401(K) plan is scheduled to go live online Jan. 7, and Cuna will add its own pension plan shortly. Eventually it plans to add E-learning and leadership initiatives.