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Selecting the right benefits broker is crucial for finance and HR leaders. Learn from top executives on the seven key characteristics to look for: expertise, value alignment, fiduciary duty, custom solutions, cost transparency, comprehensive service, and proactive HR support. Make informed choices today!
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Selecting the right benefits broker is crucial for finance and HR leaders to ensure their employees are well-cared for, so we've gathered insights from top executives. From prioritizing expertise and value alignment to insisting on cost transparency and breakdown, here are the seven key characteristics these CEOs, CFOs, and HR professionals recommend when choosing a benefits broker.
Selecting a benefits broker requires a keen eye for both expertise and alignment with company values. I prioritize brokers who demonstrate a deep understanding of the ever-evolving landscape of benefits regulations and compliance. It's not just about the packages they offer; their ability to navigate complex legal requirements and proactively communicate changes is crucial.
When I once worked with a broker who seamlessly transitioned our entire benefits structure amidst a significant regulatory shift, it highlighted the value of having a partner who stays ahead of the curve.
I also look for brokers who offer tailored solutions rather than one-size-fits-all packages. Our company once faced unique challenges in offering benefits that appealed to a multi-generational workforce. A broker who listened and provided flexible options, including wellness programs and flexible spending accounts, made a significant impact.
Transparency in fees and clear, straightforward communication also play a pivotal role. I value brokers who are upfront about costs and can break down complex benefits structures in a way that's easy for employees to understand.
Lastly, their customer service and responsiveness, especially during open enrollment, can make or break the employee experience. It's about finding a partner who not only delivers on paper but also in practice.
Rodney Steele, CEO, Dinsmore Steele
As a CEO and CFA, I look for benefits brokers with fiduciary responsibility, specialized expertise, and a proven track record of success. Fiduciary duty means the broker will put clients' interests first. Specialized expertise in areas like executive compensation, health insurance, and retirement plans ensures high-quality advice. A proven track record shows the ability to achieve good outcomes for clients.
Personally, I prefer working with smaller, independent brokers. They tend to provide more customized service and custom strategies for unique client needs. Larger brokers may lack the flexibility or incentives to optimize solutions for specific companies. However, for complex cases, larger brokers can offer more resources. The most important factor is finding a broker aligned with your company's values and objectives.
For my firm, the broker's fee structure and compensation model are also critical. Fee-only brokers avoid potential conflicts of interest that can arise from commission-based pay. Their incentives are aligned solely with providing the best advice and solutions for clients. Fee-only brokers may charge flat fees, hourly rates, or a percentage of assets under management based on the complexity of services. The model that optimizes value depends on the company's specific situation.
In the end, the broker-client relationship should be a partnership based on trust, transparency, and shared goals. Regular communication, performance reporting, and strategy reviews help ensure the broker continues meeting the company's needs over the long term. While the initial selection process is important, ongoing evaluations of the broker's services are key to a successful, mutually beneficial relationship.
David Blain, CFA, Chief Executive Officer, BlueSky Wealth Advisors
Your benefits broker should offer additional resources. When looking for a benefits broker, it's beneficial to have access to extra tools and support.
It's like when you're ordering a build-your-own pizza—you might initially just want a simple cheese pizza, but the option to add toppings like pepperoni, olives, or mushrooms is a welcome one. You might decide you want something extra after all.
Typically, you might need your benefits broker just to help you select the right employee benefits plan and provide ongoing support. However, if they offer a range of additional resources, you have the flexibility to use these extra tools as needed. Some of the resources that your benefits broker might offer include compliance support, harassment training, HR tools and assistance, employee handbook services, and COBRA administration.
Eric Croak, CFP, President, Croak Capital
When selecting a benefits broker, I look for a strong track record of client satisfaction and expertise in our industry. One key factor is the broker’s ability to offer customized solutions that align with our company’s specific needs and goals. For instance, when our company needed to revamp its benefits package, we chose a broker who conducted thorough employee surveys to understand our workforce's preferences and then tailored the benefits plan accordingly.
Additionally, I value brokers who provide ongoing support and education for both HR teams and employees. This includes regular updates on compliance changes, proactive problem-solving, and accessible resources to help employees understand and maximize their benefits.
Lastly, technology integration is vital; a broker who offers robust, user-friendly platforms for benefits enrollment and management can significantly enhance the overall employee experience and streamline administrative processes.
Brian Chasin, Chief Financial Officer, SOBA New Jersey
When choosing a benefits broker, several key characteristics and service offerings are crucial. First, expertise and industry knowledge are paramount. A broker must have a deep understanding of the latest trends, regulations, and best practices in employee benefits to provide relevant and effective solutions.
Second, a strong broker should offer comprehensive and customized service. This includes tailored benefits packages that meet the specific needs of our organization and employees. They should be able to provide a variety of options, from health insurance and retirement plans to wellness programs and ancillary benefits.
Third, exceptional customer service and support are essential. The broker should be responsive, proactive, and available to address any issues or questions that arise. This includes offering ongoing education and communication to help employees understand and maximize their benefits.
Fourth, technology integration is increasingly important. A broker should offer robust digital tools and platforms that streamline benefits administration, enrollment, and communication. These tools should be user-friendly and accessible, enhancing the overall employee experience.
Fifth, cost-effectiveness is a critical consideration. The broker should help us manage costs without compromising on the quality of benefits offered. This involves negotiating with providers, analyzing plan performance, and identifying cost-saving opportunities.
Lastly, a broker's reputation and references are important. We look for brokers with a proven track record of success and positive feedback from other clients. Strong references and testimonials can provide insight into their reliability and effectiveness.
Rose Jimenez, Chief Finance Officer, Culture.org
Cost transparency is another essential criterion to consider when choosing a benefits broker. I prefer brokers who can show precisely how my fees will be charged, and if applicable, they need to outline all the conditions and hidden extras before we sign the contract. This is important because I want to know the actual out-of-pocket financial costs upfront instead of being surprised later.
A thorough cost breakdown helps us make informed choices and drive efficiency, planning our budget and meeting our obligations. The more forthcoming a broker is about pricing, the more they build trust and a long-term relationship. More importantly, the greater transparency around cost structures helps us to maximize our benefit offerings without crippling our financial affairs.
Sunaree Komolchomalee, Head of Human Resources, Cupid Digital PR Agency
As an HR team of one, I need to be able to view my brokers as true partners. I rely on them for important changes and updates, but also on how to get the best out of the partnership.
When I work with a broker who is proactive, leans in, and shows they have my company's best interest in mind, it tells me we are in good hands, that they're “on it,” and they have my back. All the fancy collateral and robust web portals in the world can't replace that sense of trust.
Ali Aguilar, HR Manager, Envisionit
