Benefits are big business. Recently, Forbes found that 40% of employers believed workers would leave their roles to find better benefits offerings, and one in ten workers would accept lower pay if it meant access to better benefits.
This year, benefits costs accounted for nearly a third of the total cost of employee compensation among US businesses, and for many companies the cost of benefits is one of its largest expenditures. Making sure that a sizable budget is being put toward a desirable, competitive benefits package is crucial – and it’s not a task you need to tackle alone.
If you’re looking for assistance, you should consider working with a broker or consultant. Keep reading to learn what a benefits broker does and how they can help your business.
What Exactly Does a Benefits Broker Do?
A benefits broker is a licensed insurance professional who helps businesses build out, implement, and manage their employee benefits packages. By acting as your expert and serving as a go-between for you and the myriad insurance companies on the market, a broker handles the most time-consuming parts of your benefits strategy to-do list while helping your organization stay compliant and competitive. |
Beyond setting you up with the insurance basics, many brokers offer ongoing support through renewals, open enrollment, and shopping around for better savings and more comprehensive benefits offerings.
Not all brokers offer the same services, so it’s important to thoroughly research when shopping for one. To give you an idea of what you can expect, let’s delve into how brokers can help businesses build better benefits packages.
How Can a Benefits Broker Help My Business?
Broker support goes beyond price-checking current options. A broker can - and should - help your business at every step of the process.
Want specifics? Here are some of the services a benefits broker might perform:
Providing expert advice and guidance in building a successful strategy and selecting an appealing benefits package for your business. Not just getting you the most affordable options, but helping you set a plan that complements your business goals and building a solution around that.
Researching specifics. Is there a must-have benefit that you haven’t managed to acquire yet? Your broker can help you track down affordable options for exactly what you’re looking for.
Negotiating contracts with insurance providers and other vendors on your behalf, netting you better prices and offerings.
Developing cost control analyses of both your existing benefits and potential options, which can help you minimize how much your business and your people spend on insurance.
Providing assistance with renewal and open enrollment periods, ensuring you and your employees have everything you need to get set up and earn that ROI.
Aiding in compliance, making sure your business complies with all current regulations around insurance and benefits.
Supporting your employees in the form of educational resources, tools, and one-on-one assistance for any questions they may have about their benefits.
What Makes a Broker Great?
A great broker advocates for your business, guiding you toward cost savings with benefits that fit your unique needs and budget.
When you’re looking to build a successful employer/broker relationship, seek out these qualities:
A full spectrum of services beyond benefits strategy planning. Seek a broker who’ll support you through renewal, open enrollment, regulatory compliance, and employee q-and-a. Great brokers will have access to tech, training materials, and other resources that can make your job much easier.
A holistic approach to your needs. A great broker considers all aspects of your business when helping you build and manage a benefits package.
A diverse pool of carrier relationships. A good broker will have relationships – or preferred status – with a wide range of carriers and vendors, but a great broker will know exactly how to help you narrow down the list of potential partners based on your business goals.
A vast and up-to-date knowledge base. Demonstrated expertise should go beyond insurance costs. You want a broker who can answer your questions not only about renewal, compliance, and open enrollment, but also the most current tech and tools available, strategies for offering the most cutting-edge solutions, and creativity in designing your program.
Transparency. Insurance brokers receive compensation from insurance carriers. It’s to your benefit to know the financial incentives your broker receives. The Consolidated Appropriations Act (2021) requires brokers to disclose this key information to their clients. A lack of clarity on this front on the part of your broker isn’t a great sign!
Proactive and engaged support. An open line of communication is crucial to getting the most out of your relationship with your broker. This is a two-way street, of course. You need to engage your broker and provide them with up-to-date, accurate data, but the best brokers will be responsive and proactive in meeting your needs themselves and bringing you ideas and data that you might not have considered before.
Better Consulting, Better Benefits with Bennie
Don’t navigate benefits alone. Maximize the potential in your budget with an experienced employee benefits broker.
Bennie is a full-service broker, licensed in all 50 states to assist growing companies, offering personalized, year-round holistic support for your benefits needs. Bennie’s world-class service gives you access to the latest HR tech, tools, and benefits options from all major insurance carriers.
