Choosing an Employee Benefits Broker— The Underrated First Step In Building a Benefits Strategy
Employers everywhere seem to be beating the drum of health care consumerism, urging employees to comparison shop before choosing a hospital or doctor. Smart employers understand that an informed consumer is going to make better choices and that can result in cost savings and better health outcomes in the future.
Unfortunately, most don’t practice what they preach when it comes to their own wellbeing.
Few would argue that an effective benefits strategy gives employers a tremendous competitive edge, but too many companies fail to properly take the first step in that process—choosing the optimal employee benefits broker.
The right broker can help build creative benefits programs to attract and retain talent, use advanced plan design strategies to save money, uncover compliance issues, simplify benefits administration, implement HR technology, and much more. Yet, with all of these complexities when it’s time to choose a broker most employers rely on haphazard referrals and cold calls, or end up sticking with the status quo for lack of a better option. In fact, according to an informal Elevate Benefits Survey, 92 percent of employers have little idea how to objectively compare options and select the best broker for their firm.
This sub-par broker selection process is not surprising. To date there has not been readily available information and objective criteria to guide employers to the right broker. This is a real problem for employers, which is exactly why our team of HR and Benefits experts has created brokerSpotlightTM.
brokerSpotlight is an online marketplace that enables employers to find and connect with brokers that are most likely to meet their business goals. Employers can now build a list of broker candidates in an instant and ask them questions via the platform. Once they’ve identified the likeliest candidates they can use our simple RFP to solicit proposals. Based on the responses they get, employers can then create a shortlist of finalists, hold interviews, and make their selection. It’s as simple as that.
A broker interview and selection process that could take months and untold hours of calls and meetings is now possible in as little as just a few days, with a dramatic increase in certainty that you are making the right choice.
With health insurance and other benefits making up 20-40 percent of payroll costs, choosing the wrong broker can have far-reaching consequences. The benefits solution they offer may not suit your business needs or your employees’ best interests. You could end up paying too much for your benefits or not offering adequate protection in case of illness or injury. The balance between business goals and employee needs is a delicate one, and the right broker is mindful of both.
If you are an employer of 20 or 20,000 use our platform to help you build a benefits program that best meets your needs and those of your employees.