Finding cost savings is an important part of selecting a broker to manage your benefits program, especially given annual cost increases. However, in speaking with potential new clients, my objective is to listen to everything they are looking for, not just their budgetary concerns.
A client may be voicing the following:
- “We want to work with someone who is ready to provide us with options.”
- “We’re looking to work with a broker who also values providing good service.”
- “We’re just looking for more guidance.”
While it’s important for a broker to explore every option to help ease the impact of rising costs, savings shouldn’t be the only goal. A benefits program works best when there’s a strong relationship with your broker, built on trust, understanding and ongoing support, not just price.
Each employer’s Benefits Program has unique factors, including the enrollment platform, third-party administrators, points of contact and most importantly, the employee demographic. Whenever I meet with one of my current clients at renewal, I always stress that the goal should be to cause the least disruption possible for employees, while also taking the organization’s bottom line into heavy consideration.
I don’t fault anyone for focusing on cost when evaluating benefits, especially in small businesses where every dollar counts, or with nonprofits and associations where boards ask tough questions about spending. That said, I often find that employers don’t fully understand the bigger role a broker plays and assume we’re only involved at renewal. This mindset usually stems from a setup that hasn’t served them well for years.
The following are considerations you should take into account in addition to cost savings.
How Your Account Will Be Managed Day-to-Day?
Most benefits advisory teams are made up of an Account Executive and an Account Management team that work closely together. The Account Executive is usually the first person you meet when exploring broker services and oversees the overall relationship. Your day-to-day support, however, comes from the Account Management team. Understanding what each role does, how they work together and how they support you is important before deciding to partner with any organization.
In evaluating your Account Management Team, look closely at the following:
Response Time
No matter how well your benefits program operates, you can expect questions to come up throughout the year. When you rely on your broker team to help field questions, it’s important to know how quickly you are going to hear back. At HWP, we always have two sets of eyes on the account to ensure nothing slips through the cracks. Some items are not as pressing as others, but when urgent items arise that require answers, knowing you will be responded to in a timely manner should be at the top of your list.
Who You’ll Contact
There are certain agencies where the person who sells you on becoming your broker might disappear and never be heard from again. You want a broker who will still be involved in your account.
When I mentioned having “two sets of eyes” on an account, it’s because I personally stay involved with all the employers I handle. When it’s time to renew an account, I want to know which pain points have come up throughout the year so we can make adjustments for the new plan year. Additionally, I don’t like to hear about an escalated issue when things have already reached a boiling point. As your advisor and the “overseer” of the account, I am responsible for stepping in when needed to assist and ensure everything continues to run smoothly. The Account Management team is what we like to call the first line of defense. But that doesn’t mean that they should be the only support you have.
What Assistance is Provided for Benefits Open Enrollment?
Every client I work with approaches their employee benefits open enrollment a little differently. Some want a simple all-employee email that lays out the timing and the changes. Others prefer the more traditional, in-person meeting where plans and updates are reviewed together in a conference room. Some like that same approach, just done virtually. And many end up choosing a mix of all three.
It’s about what works for your organization. At HWP Insurance, we craft open enrollments unique to our clients, including employee one-on-one consultations if needed.
Your advisor should also provide a benefits guide that captures everything in one place, including insurance coverages, voluntary benefits and FSA/HSA information, for employee distribution. This is especially pertinent for new hires throughout the plan year who may not have received the communication about open enrollment and what to look out for.
How Will the Broker Handle Insurance Company Issues?
Sometimes an employer has gone through a past issue that turned into a bit of a mess, and their broker may have been part of the problem or just not very helpful when things went sideways. None of us expects everything to run perfectly. But those past experiences are actually really useful when you’re talking to a new broker. They give you the chance to ask, “If this happened again, how would you handle it?” Sharing what went wrong also helps a new broker understand the risks and how to prevent them from happening again. And if the only answer you get is, “That wouldn’t happen with us,” the next question should always be, “How?” Pay attention to how they communicate, how transparent they are, and whether they’re actually willing to step in and help when it counts.
What is a Typical Renewal Process?
This is something we hear all the time when talking with prospective clients, and it matters. An employer shouldn’t be getting renewal numbers with only five days to make a decision. That’s not reasonable. Nonprofits often need multiple layers of approval to account for every dollar, and for small businesses, every penny truly counts. Having more than a week to understand costs and consider adjustments is critical.
I always recommend starting the conversation about four months before renewal. That doesn’t mean final numbers will be ready 120 days out, but a pre-renewal meeting allows the employer and broker to align on goals for the upcoming year, whether that’s adding an HSA or HRA, adjusting contributions or deciding how to approach open enrollment. Then, once carrier numbers come in, we’re ready to move quickly and intentionally. Waiting until the last minute in the benefits world rarely ends well, which is why having a proactive broker partner makes all the difference.
If you’re evaluating your benefits plan or questioning whether your current setup is really working for you, it may be time for a different conversation. Reach out to HWP Insurance to talk through your benefits strategy and work with a broker who’s proactive, responsive and invested in your success well beyond renewal season.
Meet Colin Witt
Colin Witt is a Senior Employee Benefits Advisor at HWP Insurance, helping employers tailor competitive and strategic benefits solutions for their unique workforce. Mr. Witt is a Registered Employee Benefits Consultant (REBC) and holds the Chartered Life Underwriter (CLU) designation from the American College of Financial Services. Colin is a current member of the Northern Virginia Tech Council and a graduate of the University of Hartford.
Email: Cwitt@hwphillips.com
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