Fast-paced changes in the economy, technology and public policy continue to redefine the role of benefits brokers. The good news is that more than 4 out of 5 employers work with a broker and have no plans to drop this partnership and go it alone. Business decision-makers recently shared their insights on a wide range of topics in the 2018 BenefitsPRO employer survey. Respondents represent several key management and human resource positions. Related: How brokers can help employers in the face of high employment rates Most employers will turn to brokers for assistance as open enrollment begins this fall. Brokers help with enrollment for 65 percent of employers and conduct enrollment for another 10 percent. Only 25 percent of employers handle enrollment on their own. And slightly more than half (52 percent) of brokers are fee-based rather than commission-based. Although 84 percent of employers said they would not stop using a broker, they did cite several factors that would cause them to consider switching brokers (respondents were able to select multiple factors): |

• Cost (39 percent)
• More-consultative approach (39 percent)
• Better product offerings (35 percent)
• Better communication (29 percent)

With this in mind, what steps can brokers take to solidify current relationships and grow their business with existing and new clients? Two upcoming events—open enrollment and the midterm elections—present both challenges and opportunities. Brokers can help employers understand the regulatory and economic landscape and then develop cost-effective strategies for the coming year. |

Economic implications

One of the top economic stories of 2018 is President Trump's tax cuts for businesses and individuals. Employers are evenly divided about how the current administration and its policies affect their business outlook. Thirty-three percent view them as extremely or moderately positive, while 37 percent consider them extremely or moderately negative. The largest segment—31 percent—said they have had no effect. However, nearly two-thirds (64 percent) of employers said the economy influences their employee benefits spending. In addition, the ongoing uncertainty about health care reform has caused 43 percent of employers to rethink employee benefit offerings. Most employers reported an increase in health care and benefits costs in the past year: |

• Increased significantly (20 percent)
• Increased some (44 percent)
• Stayed about the same (29 percent)
• Declined some (4 percent)
• Declined significantly (3 percent)

The majority of employers (56 percent) do not plan to pass increased costs on to employees, and an overwhelming 86 percent have not dropped spousal coverage. Instead, many are looking at alternative ways to help hold the line on expenses. Consumer-driven plans. Fifty-seven percent of respondents are considering this option. Employee wellness. Nearly two-thirds (64 percent) of employers either have implemented or plan to implement a wellness or disease-management program. The most popular reason for doing so is to contain costs (50 percent), followed by employee recruitment and retention (33 percent) and because employees requested it (17 percent). Health savings accounts. Fifty-nine percent of employers offer HSAs; however, the majority of these employers (70 percent) said less than half of their workforce takes advantage of HSAs. Lifestyle benefits. Employers are taking a closer look at benefits that affect the work-life balance of their employees. Sixty-two percent offer flexible working benefits, and nearly half (49 percent) said they are becoming more open to telecommuting and similar alternatives. Although only 37 percent currently have financial wellness or financial literacy programs, 28 percent said they are looking into them. Seventy percent offer retirement benefits. Despite the trend toward greater workplace flexibility, only 20 percent report being concerned about the gig economy. Insurance exchanges have yet to gain much traction. Only 2 percent of employers have considered moving their employees onto the public exchange, while 10 percent have considered joining a private exchange. However, 43 percent said they have talked with their broker about exchanges. Despite the recent produ ct innovations in the marketplace, tried-and-true benefits remain the most popular among employees. Although this is good news for health-insurance providers, 100 percent of employers said they are willing to change carriers or vendors based on cost. Other factors that could cause them to switch include product options (67 percent); performance ratings (67 percent; word of mouth and reputation (33 percent); and personal experience (33 percent). |

Technology and communication

Not surprisingly, employers rely on technology both for information and to streamline enrollment, recordkeeping and compliance processes. Two-thirds (66 percent) said technology is a "must-have" for their day-to-day job functions. The rest said it is very, moderately or somewhat important. No employer considered technology unimportant. More than half (56 percent) of all employers said they consult several times or more each year with their broker about technology platforms for enrollment, administration, compliance and other tasks. Although three-fourths of them are satisfied about the frequency of communication about technology, brokers have an opportunity with the 22 percent who desire more communication. Eighty-four percent of employers are satisfied with the overall frequency of communication with their broker. Two-thirds (67 percent) report speaking with their broker several times or more each month. Apart from brokers, insurance magazine websites (55 percent), newsletters (52 percent) and print magazines (34 percent) are popular sources of information about health care reform. Seventy percent visit www.benefitspro.com regularly for work-related information. The 2018 employer survey can be a useful road map for brokers as they plan ahead for the coming year. If one common thread emerges from the responses, it is that brokers who position themselves not simply as vendors but as indispensable sources of timely information, technological expertise and superior service are set up for success in 2019. What else should brokers be considering as they prepare for 2019? |

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