On Improves Its Pre-Tax Program With a Modern, Consolidated Solution

Background

On’s mission is to ignite the human spirit through movement. The retail company delivers industry-disrupting premium footwear, apparel, and accessories for high-performance running, outdoor, and all-day activities. The company emphasizes the employee experience and aims to provide holistic, inclusive support so employees thrive in and out of the workplace. To improve ease of use, the team sought a new benefits vendor capable of delivering a strong benefits experience and building a long-term partnership.

Managing an administratively burdensome pre-tax program

“If On were to triple in size, if you think about the movement of employees and how people are moving all over the country and the world, it’s not sustainable if we were still doing things manually.” - Charles Kramer, Senior Talent Operations Lead

On’s previous pre-tax vendor was challenging because the product didn’t integrate effectively with On’s payroll system, ADP. On’s team had to enroll employees in their benefits manually, spending hours every time someone joined the company uploading files and ensuring they were enrolled in the proper benefits. 

The process was administratively burdensome and introduced room for error. As the team began searching for a new vendor, their main priority was finding a vendor capable of integrating with ADP and reducing this administrative burden. 

“We were looking for a solution that would effectively integrate with our payroll system, minimize manual work, and allow us to answer questions about how to use the benefits versus figuring out how to get data from one system to another,” said Charles Kramer, Senior Talent Operations Lead. 

Seeking a modern benefits partner 

“We want to identify really great partners that we can build long-term relationships with.” - Charles Kramer, Senior Talent Operations Lead

As they began their search, the On team sought a benefits partner with technical acumen who would work with the team to design strong benefits programs that could grow with them over time and respond quickly as new needs arise. It was important that their new vendor partner with the team on benefits design rather than provide prescriptive, inflexible solutions. After evaluating several vendors, the On team selected Benepass because of its integration capabilities, strong customer support, and industry knowledge. 

“The Benepass team demonstrated flexibility and knowledge of the space,” Charles said. “We wanted to make sure we were able to partner effectively and think through what’s unique and interesting longer term as we grow. We also wanted a partner who’s going to be able to jump in and really help us minimize our administrative work and be responsive to us if we need something.” 

Rolling out easy-to-use programs that increase access to care

“We look at our benefits to provide holistic support to people and not just address one segment of the population. We want to offer benefits that are inclusive and easy to use and understand.” - Charles Kramer, Senior Talent Operations Lead

In January 2024, the team rolled out the following pre-tax benefits to their employees:

• Healthcare flexible spending account 
• Dependent care flexible spending account
• Health travel benefit
• Parking 
• Transit

The On team is proud to offer these benefits that increase access to care—for example, the health travel benefit supports employees in the event they need to receive care that’s inaccessible where they’re located. 

“Benepass helps us provide individuals with the ability to set funds aside or use funds to gain access to care,” Charles said. “This goes back to supporting the whole person. When team members use these benefits and contribute pre-tax earnings into these programs, it’s positively impacting them from a taxation standpoint but then also helping them pay their medical bills or buy their prescriptions.” 

Administrators and employees enjoy the platform’s ease of use, noting that Benepass has worked with the team to ensure compliance and address concerns regarding the structure of their programs. Benepass’s card-first approach allows On employees to easily spend their benefits on the go, and employees can view their benefits and track spending within the Benepass app. 

“It’s been very easy to use,” Charles said. “The Benepass digital card is great. You just put it in your Google wallet or Apple wallet, and whether you’re buying a bus ticket or you’re tapping out of a garage, you’re good to go.” 

Looking ahead, the team is eager to explore how they can continue putting employees first with comprehensive benefits that support employees’ well-being. While the team previously spent three to five hours per week answering emails and manually uploading information, they are now investing that time into more strategic benefits work. 

“We’ve invested that same amount of time into thinking more strategically around our benefits and how we can approach our plans as On continues to grow,” Charles said. “As demographics begin to evolve and the organization identifies new needs, we’re able to invest that time in thinking strategically versus shifting information in Excel spreadsheets from one system to another.” 

Key results 

“Benepass helps bring pre-tax benefits to team members in a very easy way and provides resources that are easy to understand. They are really excellent partners in thinking about benefits design.” - Charles Kramer, Senior Talent Operations Lead

• Reduced administrative burden: While the On team previously spent three to five hours per week on benefits administration, Benepass’s integration and automation capabilities now allow the team to focus on strategic benefits work. 
• Enhanced employee experience: With Benepass’s card-first approach and accessible platform, On employees can easily understand their benefits, spend their funds, and track their transactions. 
• Benefits aligned with company values: The On team has rolled out pre-tax benefits programs that support employees holistically and improve their ability to access the care and support they need. 
• Excellent customer service: Benepass is a true partner to the On team, working with the team to design strong programs, ensure compliance, and address concerns as they arise.