What a Benefits Broker Does for Your Business
A benefits broker is an insurance professional who manages your company’s employee benefits. Larger brokerages have many licensed advisors in various fields, such as a health insurance broker for employer-sponsored health care plans or a retirement planning professional for 401(k), IRA, and pension programs.
The benefits consultant analyzes your company’s needs, puts together a comprehensive plan, negotiates rates, helps you comply with applicable regulations, and assists your employees with the program.
Benefits brokers are not insurance agents. Brokers are independent, with the freedom to shop around to find the best rates for your company. On the other hand, agents work for insurers, so they don’t always have your best interests in mind.
Why Benefits Brokerage Services Are a Smart Investment
Whether you run a small business or manage the human resources department of a vast organization, learning how to choose a benefits broker can make life much easier:
- Save money: Insurance brokers rely on industry connections and extensive experience to secure lower rates than are generally available.
- Save time: Avoid the headaches of complex benefits issues and claims management by choosing a benefits broker to coordinate with insurers.
- Make your employees happy: Expert brokers stay on top of market trends and benefits plan statistics for your organization, making the process as painless and streamlined as possible.
- Comply with state and federal regulations: Benefits brokerages have experience in ERISA, ACA, COBRA, FMLA, and state-specific laws for mandatory and voluntary employee benefits.
A corporate benefits broker can provide effective solutions for the challenges large businesses face with insurance-based benefits.
What To Look For When Choosing a Benefits Broker
Finding the best benefits broker isn’t a question of luck. You simply need to know where to look, what to look for, and how to select a benefits broker that complements your business goals.
Broad Range of Services
Benefits brokerages have experience in a wide range of insurance and retirement programs. The best benefits consultants provide ongoing plan management services, not just package creation or renewal reminders.
Customization Options
Personalized benefits are an amazing tool for organizations with many employees or numerous locations. Customized plans look at demographic data to determine the most attractive benefits for your workforce, industry, and company goals.
Certifications
One of the most important factors in how to choose a benefits broker involves experience. Look for the following certifications:
- Certified Employee Benefit Specialist from the International Foundation of Employee Benefit Plans
- Professional in Human Resources
- Society for Human Resource Management – Certified Professional or Senior Certified Professional
SHRM-CP, SHRM-SCP, CEBS, or PHR experts can help you lower plan costs and enjoy excellent results.
Experience With Your Industry
The ideal benefits brokerage should have many years of expertise in your particular industry. Benefits programs for manufacturing businesses look very different from packages for the sales or retail sectors. Remote workforces also require unique approaches.
Excellent Reputation
Promises aren’t worth as much as trustworthy recommendations from industry leaders. High-quality employee benefits management services should have many endorsements from satisfied — and longtime — clients.
Customer Service and Communications
It’s reasonable to expect benefits brokers to respond promptly to your inquiries. They should encourage you to ask questions. The answers you receive should be easy to understand, even if you don’t have much experience with insurance plans.
Fees and Costs
Don’t shy away from asking about broker fees and program costs. Request clear information about the fee structure. Ask directly about any hidden costs. Make sure the total fees fit your organization’s overall budget and working capital needs.
State-of-the-Art Technology
High-tech HR platforms can make the benefits process easier for you and your team. Ask about online resources for your employees, such as ongoing claims support.
How To Choose a Benefits Broker: Getting Started
Your first step is to research different brokers online. Review their stated services, areas of expertise, and reviews. Next, request a detailed proposal from each candidate, sharing the broad strokes of your company’s objectives and needs.
After comparing offerings and narrowing down your list to two or three candidates, reach out to schedule an interview. Use the opportunity to ask questions, dig deeper into specifics, and get to know the broker's personality.
What To Ask a Potential Employee Benefits Consultant
The following questions can help you get a good feel for benefits brokerage firms:
- How many years of experience do you have as a benefits advisor and which companies have you worked with?
- What do your services include?
- What benefits management services or ongoing services do you offer?
- How do you provide support for employees?
- What does your fee structure look like?
- Are there any additional costs I should know about?
Be respectful and professional, but also direct. Good brokers should also have questions for you about plan expectations, goals, and budget limits.
How To Select a Benefits Broker: Red Flags To Avoid
Employee benefits programs are tied to your company's financial resources and worker well-being. If you notice red flags, walk away, no matter how tempting the claims look. Warning signs include:
- Dishonest, deceptive, or hidden costs
- Shifting narratives or contradicting promises
- Long gaps in communication
- Irritation when you ask questions or vague answers
- Lack of certification or compliance experience
A limited range of services isn’t an automatic disqualifier, but it does mean the consultant can only manage a narrow aspect of your benefits program. Trying to juggle multiple benefits brokers can be confusing.
How a Benefits Broker Can Help Your Business
Bespoke benefits brokerage services can transform employee benefits from a pain point to a major selling point for new hires. At HUB International, we can show you how to choose a benefits broker that fits your business perfectly. Discover the advantages of our benefits plan management services right away.