Selecting and maintaining the right employee benefits plan is a daunting task
for most business owners. There are many considerations including tax and
legal issues, affordability, and plan administration. Selecting the right professional to
represent your company is a crucial first
step in your plan development. A good
advisor provides full service throughout
the year and delivers custom employee
communication materials, human resource
tools, creative and cutting-edge programs,
claims data analysis services, and more.
“Obtaining competitive quotes for coverage and handling claims problems is only a
part of what you should expect from your
employee benefits advisor,” says Keith
Kartman, a senior sales executive with JRG
Advisors, the insurance brokerage and
consulting firm managing the Chamber-Choice program.
“You need to understand exactly how the
broker-client relationship works and why
choosing the right advisor is crucial for
your organization.”
Smart Business spoke with Kartman
about the hallmarks of a good benefits plan
and some red flags that indicate that you
may need a change.
What is the hallmark of a good employee
benefits plan?
First and foremost, you want to select an
insurance advisor who is recognized by the
insurance marketplace and who will invest
the time to understand your business. The
advisor who listens to your company’s
goals and who can translate these goals to
a responsive marketplace will provide your
company with the most competitive employee benefits program.
Could you explain some of the important
value-added components that should be part
of the employee benefits program?
- Benchmarking data and trends. Statistical data can help you establish
benchmarks based on similar companies
and what they are doing in terms of company benefits. This will help in comparing
your benefits program and financial objectives to similar companies — the same
companies competing for your labor force
and consumers. - Wellness initiatives. Understanding
the impacts of lifestyle behaviors, having
access to health-related information and
participating in programs such as smoking
cessation, exercise or preventive screenings all contribute to employees leading
healthier lives. Managing a measurable,
rewards-based employee wellness program delivers immediate and long-term
results. Statistics show improved employee morale and productivity, reduced claims
costs, and proactive health risk management as positive results for employers who
champion wellness initiatives. - Intranet site. Employees and their
covered dependents need easy access to
benefits information. When this information is available 24/7 online, at the work-place or at home, employees are more
aware and can better appreciate their
employers’ sponsored benefits. Companies
can create a customized intranet site that
contains business, human resources and
benefits information; links to carrier sites,
provider directories and administrative forms — all in one place. Online access
makes finding solutions and plan management easier for all parties involved.
What are some red flags that show that a
benefits broker is not providing adequate
consultation?
Employers need to be working with their
broker on a proactive basis. Any lack of
communication between the two parties is
cause for concern. The broker should not
only help with claims and service, but also
be available to offer administrative support, troubleshooting and other assistance.
Another red flag is if the business owner
is only talking to the broker at the renewal
date. Conversation needs to be ongoing
throughout the year, ideally in quarterly
meetings. Formally prepared and scheduled meetings allow the benefits advisor to
learn of any new benefit needs, refinements and considerations, or areas that
employees need addressed.
What should an employer do if an insurance
broker’s service or a carrier is not up to par?
Typically, there is no contract involved,
so insurance brokers can be changed at
any point throughout the year. Is your current broker well compensated but providing little more than an annual visit at
renewal? If so, consider the added value
that your company should be receiving.
The key to maximizing the relationship
with a broker is to know what to expect,
and that you need more than the annual
spreadsheet of quotes and benefits plans. A
quality broker-client relationship is a
proactive, results-oriented partnership that
ensures the best long-term value and service for the company and its employees.
KEITH KARTMAN is a senior sales executive with JRG
Advisors. Reach him at [email protected] or (412)
456-7010.