Each week, we try to take a look at products and services that would be of interest to the HR professional. There are several Internet companies that have taken advantage of the connectivity of the web to provide a broad scope of services that alleviate many time-consuming HR administrative tasks. The Internet has truly revolutionized the way that companies do business in providing affordable and powerful solutions for companies of all sizes. Now, flexibility and power are not only available to the larger companies with big budgets. Within the last five years, Internet companies, such as Simpata have recently sprouted up on the ASP scene to target the small to mid-sized firms that have been commonly overlooked in the past.
Located in Alameda, California, Simpata was established in June 1999 through the merger of BEST Online and Opti-source. Simpata has developed their own ASP to provide companies with 100% Internet HR, Benefits, and Payroll services. HR.com was given a special opportunity to speak with Simpata to discover what really differentiates them from the rest of the HR Internet application providers. Let´s first take a look at some of the features and functionality of Simpata´s ASP.
What is Simpata?
With the memorable slogan, "Conquer your mountain of paperwork", Simpata realized that one of the mounting challenges to companies is the redundancy of many HR administrative tasks coupled with the production of unnecessary paper-based forms, often found in benefit and payroll. Thus, Simpata has developed their Internet solution, which specializes in Benefits and Payroll, but also includes HR services.
Who is Simpata marketed towards?
In the past, only large companies with big HR budgets were able to access the functionality of powerful and expensive HR management systems. The Internet has changed this. Small to mid-sized can now affordably access equally powerful tools as a fraction of the cost. How?
Using the Internet, companies no longer have to be concerned with purchasing expensive hardware and software that need continuous upgrading and maintenance. The Internet eliminates not only the additional costs associated with the technology but also the expensive human capital that comes along with maintaining the technology. This technological revolution has made, what was once expensive, very affordable for small to mid-sized companies.
This is Simpata´s first value proposition that differentiates Simpata from the other small to mid-sized service providers. Simpata states that their customers are not paying for the functionality that has been originally developed for large organizations. In fact, Simpata works directly with your company to find a level of customization that is best-suited for your company wherever it is located in the business life cycle.
Larger vendors have tried to meet small to mid-market demands by taking their "big business" applications and shrinking them to suit smaller companies. Fundamentally, this mismatch cannot and does not fit the specialized needs of smaller companies.
According to Simpata´s customers, they are also pleased with the fact that Simpata product is a relatively specialized Benefits and Payroll product. "Simpata is finding that its customers are looking for strong fundamental functionality for the actual services that benefit their business, not the ´everything-plus-the-kitchen-sink´ approach."
Therefore, another important decision to make when deciding upon a particular service provider is to focus on what your company needs, not necessarily every feature that the vendor can provide. Some companies may need an application that manages everything from applicant tracking to succession planning to training management; some companies may only want a benefits and payroll provider. This is where Simpata can help...
Some of the tedious paperwork involved with a new hire includes:
Simpata allows employees to complete and submit the majority of these forms online without having to sign them. Therefore, all that employees need to receive is a signature release form and their I-9.
The Internet also allows for streamlined communications by connecting employees and employers directly to Simpata´s partnered insurance carriers and benefits providers including MetLife, BlueShield, Delta Dental, Fortis, Cigna and AETNA. Currently, Simpata works with over 50 different benefit providers and continuously adding more per month. With Simpata´s benefits providers, companies stop receiving separate bills. Instead, the providers simply approve of the costing through Simpata and your company submits a check.
Simpata will alert your company of any major changes made to an employee´s benefits information. Using Simpata, employers can also see what employees have and have not read the online Employee Handbook.
One of the most powerful aspects to Simpata and other Internet applications is the centralized data center that reflects any real time changes. Why?
The problem with many paper-based systems, such as a company directory, is that almost everyone ends up with different versions of what is supposed to be the same information. Companies can spend countless hours trying to keep this information up-to-date. When information is maintained over the Internet, all employees have access to the same information all the time. When new information is added, it is added to the single, centralized database. Therefore, there is no duplication of data entry.
Simpata uses intelligent technology to ensure that employees are given benefits options that they aren´t entitled to. The system will also automatically indicate employees that qualify for COBRA and HIPAA events.
Although Simpata gives employees the tools they need to find the majority of information on their own, sometimes they will still need to communicate with someone in HR. An internal communications system allows employees to ask questions without having to continuously interrupt the HR benefits administrator. Messages are confidentially directed to the correct person.
Their self-service aspect has been designed to show employees their paychecks under various situations in order to give them the opportunity to compare which situations best suit their needs. Calculation tools for 401(k), etc. have been integrated into the system for user-friendly and quick answers. Employees can view their benefits plans, three to a screen, for easy comparisons.
Activation Fee $10 per employee
There are no additional charges for establishing carrier connections, setting up benefit plans or any other miscellaneous fess.
Monthly Fee $3 to $7 per employee per month (average of $5) depending on the size of the company. No incremental fees for data transmissions, usage, or support.
The above includes:
Simpata places the highest priority on providing the highest level of customer support. In my experiences with the company, I would have to agree. The handful of times that I requested specific and detailed information, the Simpata representative was always more than helpful with the responses provided and clearly spent a lot of extra time compiling the information that I requested.
During implementation, Simpata staff ensures that customers are properly instructed and available for any questions that the company may have. They also have a call center to respond to customers´ questions and needs and routinely check in on customers to ensure that they system is running to their satisfaction.
All users need is an Internet connection using either Netscape, Internet Explorer or AOL. There is no software to load or hardware to maintain. All software updates are automatic and occur frequently throughout the year.
Simpata states that their application is extremely simply to activate and that their customers can start activation of their system within 24 hours of their purchase. However, full activation of their product is dependent on the size of the company and how quickly the company is able to input their own employee data.
Simpata uses Pilot Network Services for their data storage security. They state that "Pilot is the only service provider of highly secure, subscription-based, e-business services." The exclusive Pilot Heuristic Defense Infrastructure consists of a multi-layered defensive architecture and around-the-clock security operations. This architecture continually evolves to proactively defend against new hacker techniques. Other companies that use Pilot´s services include: 20th Century Fox, First Data Corporation, Newsweek Magazine, and the American Stock Exchange.
Competitors
In the past, I´ve made comparisons between ASP´s and Internet Business Service Providers and stated that ASP´s can be more expensive than Internet Business Services for various reasons. Simpata provides an example of an ASP that is not necessarily more expensive than an Internet Business Service and can easily compete with other IBS vendors. However, companies need to remember that in using Simpata for their payroll processing (or Ceridian, i.e. Powerpay.com), that there will be additional fees for this service.
Due to rapid technological advancements, one of the weaknesses of many Internet-based applications is their lack of a powerful reporting module in comparison to traditional client-server HRIS´s. Traditional client-server HRIS´s were able to generate any number of reports requested by the user; trading off flexibility and reporting tools for price. Considering the relative newness of online HRIS´s, they simply cannot compare to the absolute flexibility offered by the older generation of HRIS´s. However, this aspect of the technology is being updated and transformed at a rapid basis that online applications are providing upgrades every few months.
In comparison, Simpata offers over 100 integrated reports with the application and gives companies the flexibility of automatically run reports at different frequencies such as daily, weekly or monthly, etc. This is another added benefit that companies can experience using Simpata.
Simpata has done a great job of distinguishing itself to provide an Internet solution to the HR administration problem. Specialization in Benefits with a Payroll interface is no easy task considering the high level of recent competition especially from other HRIS vendors targeting the small to mid-sized market. Essentially, their conceptual philosophy of "total cycle management" is what drives their commitment to total quality in providing a complete benefits solution. This perspective ensures that the application tracks an employee´s life cycle with the company from the initial traditional enrollment event, through the individual´s growth and development with the company, until they leave the company followed by termination paperwork and perhaps the generation of COBRA events.
For a personal demonstration, check out Simpata at www.Simpata.com to see if their 100% Internet HR, Benefits and Payroll solution suits your company´s needs.
Simpata helps small and medium-sized businesses get and keep control of employee administration by bringing human resources, employee benefits and payroll administration together in a 100% Internet solution. Simpata enables employers to "conquer their mountain of paperwork" by eliminating it via a secure, easy-to-use employee self-service interface. All enrollment, eligibility and billing information is transmitted electronically to more than 50 insurance and other financial service providers across the U.S on behalf of thousands of employees.
Employers and employees need only Internet access and a web-browser to access Simpata. It uses the best available Internet security from Pilot Network Services, who provides hosting and around-the-clock dynamic threat monitoring systems. Simpata Inc. was established in June 1999, through the merger of BEST Online and Opti-Source. BEST introduced a client-server software product in 1995, which collects benefits, eligibility and billing data from employers and transmits it electronically to insurance carriers. In 1998, Opti-Source created an Internet service application to manage employee administration for the small employer market.
Company Contact Information
Simpata, Inc.
1301 Marina Village Parkway #240
Alameda, CA 94501
1-877-HR-SIMPLE