Employee Benefits Broker: What Should I Expect?

Chris Freitas • Jul 09, 2021
employee benefits broker

 

Offering today’s employees the best benefits package possible is vital to companies focused on employee satisfaction and retention. The current business climate is fiercely competitive in nearly every industry. In terms of employee recruiting and retention, everyone needs to find the best and most affordable path to offering employees an attractive, contemporary package that keeps them healthy, happy, and onboard.

 

The right employee benefits broker can help you do that and much more.

 

In July 2019, Tess Taylor at The Balance Careers reported findings from a JobVite report and infographic, revealing that “71.6% of companies offer benefits that go beyond the normal health and financial benefit products that are standard in workplaces.”

 

As workers continue to weigh their options in a new world after dealing with the restrictions and remote work environment of the COVID-19 pandemic, it’s more important than ever for employers to fine-tune hiring, onboarding, and retention strategies. Your HR team might struggle to figure out the current patterns and trends to keep employees happy, but a diligent employee benefits brokerage team will stay up-to-date with everything.

 

With that in mind, there are plenty of basic things you need to know about your employee benefits broker and what you should expect from them. Read on to learn more!

 

WHAT IS A BENEFITS BROKER?

 

If you’ve never engaged with an employee benefits broker or you aren’t satisfied with the team you have now, you might wonder what an employee benefits broker is.

 

According to HR Daily Advisor, benefits brokers seek out and offer multiple options for their clients and help them narrow down their choices with their expertise of all the latest in the benefits industry news, trends, and health industry legislation.

 

You’ll have the benefit of working with industry insiders who have your best interests in mind. Your ideal broker will help you choose and manage employee benefits while negotiating competitive rates that keep your budget healthy.

 

But you probably need more specifics as far as what you can expect.

 

WHAT SHOULD YOU EXPECT FROM YOUR EMPLOYEE BENEFITS BROKER?

 

Since your benefits package probably makes up a significant part of your annual budget — especially your labor expenses — you need an employee benefits brokerage firm that will handle matters effectively and find the best benefits options for your business and budget.

 

It makes sense that you want to take your time to find a broker who will work to find the best plans at the best rates that feature high-quality service. You can’t rush right into it. You need more information in terms of what you can expect from your employee benefits broker.

 

Here are some things you should expect from your employee benefits broker to help you get the best benefits for your employees at a price that keeps your profits strong.

 

A HEALTHY DOSE OF INFORMATION AND ASSISTANCE TO HELP YOU CHOOSE THE BEST INSURANCE PLAN

 

Your benefits broker should have a broad range of knowledge regarding various forms of employee-related insurance, including:

  • Health
  • Life
  • Disability
  • Dental
  • Vision

 

While you might place the highest focus on finding and implementing the best health insurance plan, today’s employees have diverse considerations, so covering all the insurance areas will help satisfy a range of needs, desires, long-term goals, and priorities.


FAMILIAR WITH YOUR ORGANIZATION’S NEEDS

 

Your organization has needs just as your employees do, and your employee benefits broker should understand this concept. Once you start researching and contacting prospective benefits brokers, you’ll want to let them know what exactly are your needs and goals.

 

Ensure that they understand what you want to do for your employees with the budget you have available. Ask them what types of work they have done in that area and if they are up to meeting your organization’s specific needs. You can also ask them about other types of companies they’ve worked with to get a better understanding of their knowledge and scope.

 

WILL HELP DESIGN A PLAN ACCORDING TO YOUR ORGANIZATION’S NEEDS

 

Make sure your benefits broker can design a unique benefits package for your employees based on your employee population and their needs. Today, more than ever, benefits are unique to each company and its employees’ personal needs and goals.

 

Is your potential benefits broker able and willing to work with your HR and executive teams to build a plan for your company?

 

KNOWLEDGE OF ALTERNATIVE HEALTH PLAN OPTIONS

 

Long gone are the days of the traditional, monolithic fully-insured health plan as the sole or even primary option for businesses and their employees. While still a valid, and in some cases, an essential type of healthcare plan for businesses of varying sizes, there are now several additional options available for small-and-medium-sized businesses than ever before.

 

In one of our recent blog series, we focused on “How to Save Costs On Your Benefits Program,” discussing options including:

  • Partially self-funded plans
  • Level-funded plans
  • Reference-based pricing

 

Your benefits broker should know about each of these options and layout which one might work best for your employees, based on the information you provide about your organization and employees..

 

CONTINUOUSLY UPDATED COMPLIANCE INFORMATION

 

The insurance industry is rife with regulations, so your benefits broker must be able to help you navigate each law and regulation applicable to your insurance plans. Here are a few key laws that your benefits broker will help you stay compliant with:

 

The Affordable Care Act (ACA)

The Employee Retirement Income Security Act (ERISA)

The Consolidated Omnibus Budget (COBRA)

 

FEE TRANSPARENCY

 

While you’re trying to save money on your insurance and other benefits matters, you also want to manage your benefits broker budget soundly. Ensure that you understand how your employee benefits broker earns their salaries. For instance, some brokers receive payment from insurance companies or through commission on sales, which is important for you to know in either case. If your broker is working on behalf of other parties, you might not get the value you’re seeking.

 

Additional fee arrangements might include a flat fee for your company, depending on the number of employees your business has, which offers more of an even playing field.

 

In any case, your benefits broker should offer you a candid explanation of how they receive payment and whether they receive any incentives from vendors or insurance carriers.

 

SUPPORT FOR YOUR EMPLOYEES DURING OPEN ENROLLMENT

 

Regardless of the plan you choose for your employees, they will likely have many questions when trying to decide and sign up. Your employee benefits broker should be available to answer those questions to help your employees make the best decisions. Your ideal broker will answer questions, assist with any claims, and offer advice during the open enrollment phase, listening to your employees’ wishes and concerns.

 

A PARTNER FOR YOUR HR TEAM

 

One crucial part of engaging a benefits broker is to take some pressure off your hard-working HR team. Therefore, ensuring that your employee benefits broker plans to work with your team is critical. Your employee benefits broker should always be easy to reach and quick to respond to your HR staff. Since many insurance-related questions will be time-sensitive or have some other underlying pressure, it’s important to know your broker is available to help.


A RANGE OF SOLUTIONS

 

Some clients might only need insurance broker services, but others might need and value much more a human resource solution with services including:

 

  • HR audits
  • HR strategies
  • HR program management
  • Employee relations
  • Policies, templates, and handbook design
  • HR training modules

 

You might run a startup or small business with limited technology resources to streamline your benefits strategies. In that case, it’s important that your benefits broker can help with the following:

 

  • Benefits enrollment
  • HR Information Systems (HRIS)
  • Applicant tracking systems
  • Payroll
  • Learning and development systems
  • Employee self-service portals
  • COBRA administration


YOUR EMPLOYEE BENEFITS BROKER SHOULD SERVE AS A PARTNER TO YOUR ORGANIZATION

 

Employee benefits matters are more complex than ever before because of a changing workplace population, the costs of health insurance, and reactive factors such as those involving a post-COVID-19 response.

 

Your company needs a benefits broker with their finger on the pulse of all these factors and more to help you navigate the world of benefits to offer your employees a plan that lets them know how much they matter to you. Today’s employees need to feel secure in their job and know that their loyalty and hard work matter.

 

Are you searching for your first employee benefits broker, or are you interested in making a switch to find someone whose primary goal is to provide expertise and satisfaction? Hopefully, this list will help you pinpoint who you are looking for.

Contact Us

YOU CAN COUNT ON OUR KBI TEAM TO DELIVER


At KBI Benefits, we believe in outcomes delivered for your business and employees. Our focus on excellence turns promises into outcomes, such as keeping employees happy, maintaining regulatory compliance, health plan savings, eliminating administrative waste, and much more.

Contact us today using our online contact form or calling us at 408-366-8880, so we can discuss your employee benefits broker expectations and how we plan to exceed them.


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