Maximizing cost savings is still important, but providing their clients with "legislative and regulatory updates" has also become a top priority for today's benefits brokers and advisors. (Photo: Getty)
The role of the benefits broker is moving toward universal consultancy: understanding the broad needs of an organization in conjunction with its benefits plan, according to ConnectYourCare's report, "The Broker Guide to Refining Benefits Strategies for 2020 and Beyond."
"Broker roles are changing, and that's because employers are changing, too," the authors write. "Employers today are challenged with creating benefits packages that are competitive enough to attract and retain talent, affordable enough to balance the bottom line and keep employees happy, and flexible enough to bend with ever-changing (and usually confusing) health care legislation."
ConnectYourCare surveyed more than 250 brokers and found that the most important task for brokers continues to be "ways to maximize client cost savings," cited by 68 percent of the respondents. However, providing their clients with "legislative and regulatory updates" comes in second (60 percent) as very important.
Other topics considered very important for brokers are consulting clients on effective employee communication strategies and best practices (50.3 percent); plan document compliance (46.9 percent); the evolving landscape of tax-advantaged health accounts (43.6 percent); and health savings account education: promoting the health-to-wealth advantages of an HSA to employers and their participants (40.4 percent).
"To stay ahead, brokers should focus on personal education," the authors write. "Whether it's through e-newsletters and webinars, new certifications, or partner communications, brokers must continue to become more resourceful and build greater value for their clients in the coming years."
Technology is on brokers' minds: 44 percent of brokers say "giving clients access to a self-service platform to manage their employees" would make it easier for brokers, when it comes to managing and recommending tax-advantaged accounts. Following closely behind, 24 percent say "having access to a self-service broker platform to manage clients" would also be beneficial.
"If employer clients are considering a technology investment, brokers should have firm recommendations ready to advise their clients appropriately," the authors write. "Tax-advantaged accounts can help employers pay for their investment by saving them on their payroll taxes."
Brokers should first research whether their third-party administrators offer technology that employer clients could be leveraging more efficiently – or whether their TPAs have partnerships with companies that also offer technology that employer clients could utilize.
"You may have some 'freeware' in your back pocket that you didn't even realize existed," the authors write. "If you discover some untapped resources, take the additional step to become an expert in your partners' products and solutions. From there, you can actively coach your employer clients to better understand the tools they have at their fingertips."
For new solutions, brokers should consider recommending technology platforms will integrate with a client's current infrastructure, and how much customization the client will need. "As brokers are refining their benefits strategy vision for 2020 and beyond, we know a few things are certain in the upcoming year: technology will continue to be key, new legislation will continue to crop up, tax-advantaged accounts are here to stay, and the employee benefits experience will remain a focus to HR," the authors write.
Other key survey findings include:
- 63 percent of the benefits brokers say "recommendations for controlling the cost of benefits" is the biggest value add they can provide. Another 58 percent say "managing employer concern about the rising cost of health care benefits" was one of the biggest challenges brokers are facing.
- When asked what the most likely reason would be for a broker to consider changing their clients' third-party administrator, "service and support for participants" wins out at 56 percent. "Better pricing in the current market" comes in far behind at 15 percent.
- 78 percent say "email blasts or e-newsletters" are their primary ways of staying informed. Additionally, 75 percent say "webinars" are also helpful, followed by "industry magazines and websites" at 73 percent. Less popular options are "videos" (16 percent) and "podcasts and blogs" (15 percent).
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Katie Kuehner-Hebert
Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.
