Whether you’re shopping for employee benefits for the first time or switching plans and insurance companies, a broker’s expertise is key in helping you secure the benefits you and your employees need. In fact, 46% of all employers, and 67% of those that have more than 100 employees, expect to rely on their brokers more in five years than they do today. To find a benefits broker who’s right for you, here are some things to consider.
What a broker can do for you
As a licensed insurance professional, a broker is the liaison between you and the insurance companies you’ll work with. Their knowledge of the insurance market and products available helps them create and manage an employee benefits package customized to fit your business objectives and benefits budget — now and into the future.
A broker can simplify benefits administration for you and reduce stress in the long run by:
- making sure your benefits comply with regulatory requirements
- helping with employee benefits enrollment and ongoing education
- monitoring and reporting plan usage to recommend beneficial plan changes over time
- working directly with benefits insurance companies on your behalf
The spectrum of employee benefits and services a broker or brokerage firm provides varies depending on their area of expertise and the technology platforms they use. For the best outcome, your broker should understand your goals, your industry, and your employee demographics. Follow these tips to start moving in the right direction.
Do some research and planning
Prepare for your broker search as if you were hiring a new employee. Outline your needs and goals, and check with references for recommendations.
Know what you need. Consider your industry, your competition, and the employees who work for you to understand what types of benefits to offer. If you offer benefits already, ask your benefits carriers for reports that show plan utilization to find gaps. Do informal employee surveys — or ask in person — to find out how they rate the benefits’ cost and quality.
Define your goals. Based on your research, outline your benefits goals. Do you need to cut premium costs? Are you planning to increase available benefits? Are there specific benefits you want to add or change? Do you need to boost enrollment numbers or benefits utilization? Are benefits part of a strategy to increase employee engagement and satisfaction? Do you need help with employee benefits education?
Talk with peers and business owners. Network with employers and HR professionals in your industry to find out which brokers or brokerage firms they work with. Ask detailed questions about the broker’s knowledge and expertise, level of assistance, and the employer’s satisfaction.
Check with associations, chambers of commerce or employer organizations. These entities have expertise in helping businesses find brokers and insurance companies to work with. Some even offer consulting services if you need them.
Create a checklist. Before you begin interviewing brokers, create a checklist of things to ask them. The next section will get you started.
Start looking early. Like anything that’s worth the effort, finding a broker who’s right for you will take time. Plan ahead so you have plenty of time to research your needs, network with peers and professionals, interview brokers, and make a decision.
What to look for in a broker
When you begin interviewing prospective brokers, use your checklist to make sure you get a thorough understanding of what they provide. Following are some topics you can start with.
- Insurance companies they work with — Brokers know insurance company reputations, and they can recommend insurers based on your specific goals.
- Specialization in industry or types of benefits — Do they specialize in the benefits you and your employees want?
- Benefits communication — Do they provide the assistance you’re looking for so you can focus on other responsibilities?
- Service — Get specifics. Do they help with benefits questions and issues year-round? Do they only assist during enrollment and renewal? Make sure their service matches your strategy.
- Technology platforms — Are the platforms they use for benefits administration and maintenance compatible with the ones you use?
- Payment structure — Most brokers are paid commissions by the insurance companies they work with. Some charge customers flat fees. Get specific costs up front.
Make sure to check online reviews to see how other customers rate the broker’s performance and reputation.
Get started
The workforce is evolving quickly. Working with a benefits broker can help you maintain a benefits package that keeps pace with your employees’ changing needs. So you have time to focus on your business.
When you’re ready to get started, you can also review this detailed guide to hiring a benefits broker from the Society for Human Resource Management (SHRM).
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