JULY 2023HR TECH OUTLOOK9Suzanne Haslam, Senior VP of Employee Benefits, Woodruff Sawyerunderstands your company's pain points means you have another advocate on your side.Ask yourself: Am I getting a seasoned team to service my company's ongoing needs? How will our teams work together?In-House ExpertsYour broker likely has multiple team members handling many aspects of your employee benefits program. Do you have a relationship with these in-house experts?One example is data analytics--having a data analyst present on relevant calls allows you to ask data-related questions to the source directly. If you have a compliance question, can you ask your brokerage's in-house lawyer to hop on a call with you? Can your broker's communications specialist help you better educate your employees about their benefits and offerings?Ask yourself: Does my broker listen to my needs and pull in the right experts to help resolve concerns?Review Broker CompensationSince broker compensation is a key concern for most CFOs, it's important to assess your knowledge of how compensation breaks down.Billable HoursSome firms bill clients for the time they spend on their accounts. That means the clock is ticking once you pick up the phone to ask your broker consultant a question or to work on a specific project. Depending on your needs, this fact can make it difficult to form a true partnership. Firms that include consultation in their standard fees can take the time needed to understand your business fully; share their expertise in benefits; and guide you in cost, compliance, wellness, communication, and technology needs.Ask yourself: What kind of interaction does my team want/need with the broker, and how could that affect the cost?Compensation StructureBenefits brokers can be compensated in various ways, including a commission, a flat consulting fee, or a combination of these. New transparency rules in the Consolidated Appropriations Act (CAA) mandate that brokers outline to the client the compensation they receive for their services. With this transparency, you can keep a pulse on what your broker is making and ensure you obtain adequate service in return.As your company grows, it's good to review the broker compensation method to make sure it's still the right fit. For example, smaller companies traditionally have standard commissions built into their programs, but broker compensation can increase significantly when a company is in hyper-growth. In this circumstance, it might make sense to discuss lowering the standard commission levels upon renewal, putting in a commission cap, or carving out commission altogether, paying via a flat consulting fee.Ask yourself: What do our employee growth projections look like, and how might that affect what my broker is being paid?Your Broker Consultant Is a PartnerAn effective broker doesn't view you as a number but as a partner. They're not counting hours spent on your account but working to ensure your questions are answered and your problems resolved. And they're continuously advocating for you, focusing on overall transparency and looking for ways to reduce your employee benefits costs while maintaining a competitive benefits program. WHEN CHOOSING A BROKER, LOOK FOR SOMEONE WHO KNOWS YOUR BUSINESS. SOME BROKERAGES SPECIALIZE IN DIFFERENT SIZED GROUPS OR INDUSTRY SEGMENTS
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