6 Reasons Why You Need a Benefits Consultant
Why are Employee Benefits Important?
As a business owner or employer, you have to make many decisions related to your business, from how to market your brand to how to manage your employees. One of the employee-related decisions that you have to make is the kinds of employee benefits you’ll offer, from medical benefits to disability benefits to retirement benefits.
To employees, a large paycheck is highly attractive, but so is a good benefits package. A survey found that 75% of employees said an employee benefits package offering is very important to their job satisfaction. In the same survey, 60% of employees said that it’s very important to their loyalty.
If these statistics are anything to go by, any employer should have a solid employee benefits plan to attract high performing talent and keep current employees loyal and motivated. If you don’t have an employee benefits plan just yet, you should set up one sooner rather than later.
One important thing to keep in mind is that knowing how to implement and manage your employee benefits can be challenging. Even the best employee benefits and perks can be poorly perceived if they’re not implemented correctly. Therefore you should ensure that the benefits and perks you’re adding or enhancing have maximum impact. In other words, execution matters. This is where employee consultants come in.
What’s the Difference between Benefits Consultants and Benefits Brokers?
Most business owners or employers are confused about whether they need an employee benefits consultant or an employee benefits broker. Many also don’t know the difference between these benefits experts – and some wrongly assume that the different terminologies are merely semantics.
The main difference between consultants and brokers comes down to consultative relationship vs. transactional relationship.
Benefits brokers are primarily focused on assisting employers to procure benefits products. On the other hand, benefits consultants are intensely involved in how an employer’s employee benefits plan will help drive their overall HR strategy and other strategic imperatives.
Six Reasons Why Employers Need Benefits Consultants
Creating and implementing an appealing employee benefits plan doesn’t necessarily have to be complicated. With the assistance of a professional benefits consultant, the entire implementation process can become a breeze. Still not convinced that you need help? The following are the six reasons why employers need benefits consultants:
1. They Provide Impartial Advice
What’s the general cost of employee benefits for a typical package in your industry? Do you know what your competition is offering their staff? What can you expect to pay to remain competitive in the future? If you can’t answer such questions, you need a professional who has all the right answers at their fingertips.
One of the critical roles of benefits consultants, who are also known as benefits advisors, is to offer advice to employers in matters regarding employee benefits. They are geared with the expertise and market intelligence that’s essential to provide impartial advice on different employee benefits solutions that are tailored to your organization’s needs.
2. They Provide Very Accurate Information
The knowledge and experience that benefits consultants possess enable them to navigate different industry challenges despite how complex they may be. No matter the challenge you’re facing, an experienced consultant has probably encountered a similar situation in their prior dealings.
And, since benefits consultants are resourceful problem solvers by profession, they are able to provide employers with accurate information that can help them achieve their end goals. The fact that they are conversant with industry-related trends also enables them to provide information more accurately.
3. They Efficiently Provide Quotes from Providers
Besides giving accurate information, benefits consultants offer relevant price quotes very quickly. While it can take you a long time to find the information you need to get answers, benefits consultants can obtain relevant information in a more efficient manner. This is because they have strong provider relatiionships as well as access to a number of marketing statistics and benchmark data.
Access to this relevant information has many benefits to your company. One of them is that benefits consultants will save you precious time by providing swift resolutions so that you can focus on the most important thing – growing your business.
4. They Put the Employer’s Interests First
Unlike benefits brokers who are more concerned about their bottom-line, benefits consultants are client-focused. An experienced benefits consultant understands that it’s all about you: your pain points, your employee benefits requirements, your budget, and how your employee benefits plan influences your business strategy.
An excellent benefits consultant will also look into your future to give a roadmap forecast, all while keeping your budget in mind. The benefits consultant will get the most out of your unique situation. They will also make use of their available resources to ensure that your employee benefits plan succeeds.
5. They Have Strong Strategic Relationships Already In-Place
Benefits consultants build professional relationships, not just with their clients, but also with the vendors and carriers that they work with. These strategic relationships allow them to customize programs on a case-by-case basis, based on their clients’ unique needs and circumstances.
6. They Help Companies Remain Compliant
Today, businesses are dealing with an overwhelming number of state and federal legal requirements. Aggravating the situation, government agencies, such as IRS, HHS, and DOL (to mention but a few) are insistently targeting, auditing, and penalizing businesses that fail to comply with both long-standing and recently enacted laws.
The administrative burden to stay compliant is becoming more burdensome every day, particularly for small to mid-sized companies. Benefits consultants are among the first places employers turn to for guidance on many of these compliance requirements.
An experienced benefits consultant will have in-depth knowledge about federal and state laws and regulations. As such, they can assist you in choosing the employee benefits that are right for your organization, and then can ensure that your choices comply with all applicable laws.
Employees are among the most important aspects that contribute to any organization’s success. Without them, it’s nearly impossible for your company to grow and excel. To demonstrate your appreciation, you should implement a sound employee benefits plan that’s sure to boost employee acquisition, satisfaction, and retention.
Are you ready to bring a benefits consultant onboard? Be sure to schedule a meeting today to enjoy all the above benefits.