The Difference Between A Good Broker and Just Any Broker
Finding the Right Employee Benefits Broker: Don’t Just Choose Your College Roommate
Selecting the proper employee benefits package is one of the most important decisions a company can make. The benefits you choose don't just impact your bottom line, they directly affect your ability to recruit and retain top talent. With so much on the line, it's crucial to have an experienced employee benefits broker on your side.
Let’s face it, many companies just go with someone they know or who pressured them into a business relationship. We see it a lot… A brother-in-law, a niece, an old friend, etc. Theu got into insurance sales and now you just use them out of loyalty or fear of hurting feelings.
In this article, we'll explore what separates a truly exceptional benefits broker from an average one. We'll provide a checklist of must-have capabilities so you can make the right choice for your organization. We'll also explain why the broker is the most pivotal factor in getting a competitive and compliant benefits plan that keeps your employees satisfied.
Lastly, we will give you some tips on getting out of a bad broker relationship without ruinging Thanksgiving dinner.
The Value of a Knowledgeable Broker
The employee benefits landscape grows more complex by the day. Staying on top of changing regulations, emerging trends, and new plan options is a full-time job. This is where your broker steps in. An exceptional broker will:
Maintain extensive knowledge of regulations including ERISA, ACA, COBRA, and HIPAA. They'll ensure your plans follow all legal guidelines.
Research the latest benefits trends and innovations. They'll present you with cutting-edge options to attract top talent.
Understand all plan specifics including costs, networks, formularies, deductibles, out-of-pocket maximums, and copays. They'll explain the nuances of each option.
Provide benchmarking data so you can compare your plans to competitors'. This allows you to stay competitive in your industry.
Offer guidance on building a benefits strategy aligned with your workforce demographics, company culture, and budget. They'll ensure your plans meet your unique needs.
Stay in touch throughout the year, not just when they need a census at renewal.
Be available directly to your employees for troubleshooting and administration issues.
Provide premium services for free like COBRA administration and ACA reporting.
A broker with their finger on the pulse of the dynamic benefits landscape is invaluable. They use their expertise so you don't have to become a benefits pro. This frees you up to focus on your core business.
Navigating Carrier Relationships
Insurance carriers hold much of the power in the benefits equation. But a great broker levels the playing field through their carrier connections. An exceptional broker will:
Maintain long-term partnerships with top insurance carriers. This gives them negotiating leverage to secure the best rates and plan options.
Receive special access to carrier underwriters. They'll present your unique situation for customized plan development.
Act as your advocate in carrier negotiations. They'll fight to get you the most coverage for the lowest cost.
Understand carrier strengths and weaknesses. If issues arise, they'll leverage their contacts to resolve problems quickly.
The right broker serves as your guide through the complex carrier world. Their insights and relationships lead to optimal plans at reasonable rates.
Ongoing Account Management
A broker's responsibilities don't end once the plans are in place. Your employees will have ongoing questions and challenges. An exceptional broker will:
Act as an extension of your HR team. They'll address employee inquiries about benefits or claims. This provides relief for your internal staff.
Proactively communicate with your population about their benefits and how to maximize them. This promotes engagement and satisfaction.
Conduct open enrollment meetings onsite. They'll clearly explain plan offerings so employees can make informed selections.
Provide year-round education such as newsletters and webinars. This helps employees understand their options and get the most from their benefits.
Offer personalized support via dedicated account management teams. Issues get resolved promptly and efficiently.
Coordinate with carriers behind-the-scenes for claim resolutions. This removes the hassle from your staff.
Advise you on communicating changes and updates. They'll help you avoid confusion and dissatisfaction.
Provide usage reports with actionable insights. You'll know which plans employees value most and where more education is needed. (This depends on you having a large enough organization)
Conduct annual reviews and benchmarking. They'll recommend enhancements to keep your plans cost-effective and competitive.
The right broker becomes an invaluable extension of your HR and benefits team. Their ongoing service keeps your plans running smoothly and your employees happy.
The Broker Makes the Difference
With so much complexity surrounding employee benefits, leveraging a broker is mandatory. But not just any broker will do. The right broker will provide you with value in three key areas:
Expertise - They'll possess extensive knowledge of regulations, trends, and plan specifics so you don't have to.
Relationships - They'll leverage connections with carriers to secure optimal rates and service.
Ongoing Support - They'll provide year-round account management and employee education.
When these variables are met, you get a benefits package tailored to your workforce and culture at a cost your business can afford. Just as importantly, you provide your employees with plans they understand and appreciate. This leads to higher engagement, productivity, and retention.
Choosing the Right Broker for You
Use the following checklist when evaluating brokers to find the right match:
< > Do they offer extensive benefits knowledge and stay on top of changes?
< > Can they provide benchmarking data against your competitors?
< > Do they have long-standing carrier relationships and negotiating power?
< > Will they assign you a dedicated account management team?
< > Can they effectively educate your workforce at enrollment and year-round?
< > Will they take on carrier negotiations and claim resolutions?
< > Do they start shopping your account early to get the best rates? (usually 60 to 45 days out from open enrollment.
< > Can they provide usage analytics and annual reviews?
< > Will they provide contact information directly to employees and allow employees to communicate with them to help with questions and problems?
< > What benefit related services do they provide for free?
< > Employee Perks
< > COBRA Administration
< > ACA Administration
< > Voluntary Benefit Packages
A broker who checks all those boxes is equipped to provide you with strategic guidance and robust service. This will alleviate your administrative burdens so you can stay focused on your core priorities.
Find Your Best Broker Today
As this article illustrates, selecting the right broker is the most important benefits decision you can make. The team at Employee Benefits NJ has been providing exceptional guidance and service to clients for over 30 years. Their expert brokers become trusted advisors who take care of the details so you can take care of business.
They don’t try to match some slick selling broker from 1000 employee companies to your unique business and industry. Employee Benefits NJ takes you, your employees, and your industry into consideration and matches you with a service minded expert to beoker you Employee Insurance Plan.
Reach out today to learn how they can help you. 888-476-6923
