When you think about the complexity of employee benefits, it’s easy to see why businesses often struggle to manage them efficiently. The burden of understanding insurance intricacies, filing claims, and ensuring the best possible rates can overwhelm even the most seasoned HR departments. Enter brokers—the unsung heroes of employee benefits administration. Here are seven compelling reasons why using a broker can be a game-changer for your business.
1. Some Insurance Companies Will Only Deal Through Brokers
In the intricate world of insurance, not all providers are readily accessible to direct clients. Some of the most reputable insurance companies will only engage through brokers. Why? Brokers act as intermediaries who ensure that the business has proper representation and the provider has all the necessary information to make informed underwriting decisions. This broader access to insurance markets can be a boon for businesses, as it increases competition among providers and inevitably leads to better rates. Without a broker, your company may miss out on options that could offer significant savings.
2. Added Benefits for Free, Such as Discount Programs
When businesses partner with a broker, they aren’t just getting help with health insurance or dental plans. Many brokers can offer added-value benefits at no extra cost. These can include discount programs on everything from gym memberships to retail purchases, adding value to your employee benefits package. This extra perk costs the employer nothing and adds an additional layer of employee satisfaction. Over time, these ancillary benefits can boost morale and help in the retention of talent.
3. Added Support for Your Staff and Management
Employee benefits issues don’t just go away once a plan is in place. Inevitably, there will be claims disputes, confusing paperwork, or renewal negotiations that don’t seem to favor your company. A good broker advocates for both your business and its employees. When claims don’t work out as expected, brokers push back and fight to ensure the right outcome. If your renewals seem higher than anticipated, a skilled broker will go back to the table and push for better terms. If your current broker isn’t doing these things, it might be time to reconsider your partnership.
4. They Will Train Your Staff and Management
An underutilized benefit plan is a wasted investment. Brokers often take on the role of educator, providing essential training for both management and staff on how to effectively use their benefits. This training doesn’t just cover the technicalities of health insurance but also emphasizes the value these plans bring to employees’ everyday lives. When your employees fully understand and utilize their benefits, they perceive greater value from their compensation package, improving overall satisfaction and retention.
5. They Will Keep Files Up-to-Date and Ready for Tendering
One of the most significant administrative burdens with benefits is maintaining organized files. Insurance carriers need a wide range of documents to provide accurate quotes, and many businesses struggle to stay on top of this. A broker alleviates this headache by ensuring all your files are continually up to date. This allows your company to request new quotes or negotiate better rates at any time without the stress of sifting through old paperwork. Organized, well-maintained records give your business leverage in negotiations and ensure smooth transitions when switching providers.
6. They Will Add a Layer of Customer Service
Anyone who has dealt with an insurance company knows that getting answers can sometimes be an exercise in patience. A broker adds a crucial layer of customer service between your employees and the often convoluted world of insurance companies. Rather than calling an 800 number and navigating endless prompts, your employees can reach out to a familiar person who understands their needs and can quickly resolve issues. This continuity in service is invaluable, improving employee satisfaction and ensuring problems are handled efficiently.
7. They Will Provide Infrastructure to Use Multiple Carriers
A savvy broker can set up a system that makes it easy for your company to use multiple insurance carriers simultaneously. Why is this important? By not tying your business to one provider, you introduce more competition, which can drive down premiums. This approach gives you flexibility, and with the broker managing the various plans, your company can enjoy the cost-saving benefits without the administrative headaches. A skilled broker understands how to balance different providers in a way that benefits your business.
All This at No Extra Cost
Most brokers won’t charge you an additional fee for service
Brokers do far more than connect businesses with insurance providers. They act as advocates, educators, and administrators, freeing up your team to focus on core business functions while ensuring that your employees receive the best possible benefits at the most competitive rates. The added value a broker brings—whether through better rates, additional services, or improved employee satisfaction—makes them an indispensable partner in today’s competitive business environment. If you’re not already using a broker to administer your employee benefits, it might be time to reconsider.
