Employee benefits and insurance are one of the top business expenses. It makes up around 30% of your compensation costs, just behind payroll which is around 60%. These programs have the potential to directly affect your organization. Benefits are often integral in employee retention, the quality of talent you attract, employee turnover, productivity, and more. With so much riding on these decisions, you don’t want to leave it to change. An employee benefits broker can help select the best programs for your business and help with sign up and information dissemination. However, selecting a benefits broker should not be taken lightly. Before you hire your next broker, ask these questions.
1. What is your experience in the industry, and can you provide references?
Employee needs vary from one organization to the next, as well as from one industry to the next. Look for a broker who has experience in your industry and can provide quality references to attest to not only that experience, but also build a positive track record.
2. Do you have a dedicated account manager?
Accessibility is so important throughout an organization and the employee benefits broker is no exception. You need to know that if you have a question or have difficulty making a claim, they are there to help. A dedicated account manager can do that for you.
3. What services do you offer and what should I expect?
Before you ask this question, do an assessment to determine what your organizational needs are. This will help guide you in selecting a broker. You need to know what to expect and what they can do to meet your company’s needs regarding employee benefits.
4. How do you handle renewals?
Most renewal periods begin around 45 to 60 days before the actual renewal date. Of course, you expect your broker to show up then, but you also want them to be available and working on your plan all year long.
5. What processes or methods do you use to control healthcare costs?
This is the big question. A good broker will provide your HR team with professional advice regarding benefits costs strategies. They will negotiate with insurance carriers in order to get your employees the best rate possible.