The power of partnerships in the benefits industry
Even the Lone Ranger had Tonto. Not only is going it alone not advisable in a rapidly changing and increasingly complicated industry, it’s also…
Even the Lone Ranger had Tonto.
Not only is going it alone not advisable in a rapidly changing and increasingly complicated industry, it’s also nearly impossible. Even the largest firms can’t develop and maintain all of the necessary expertise required by today’s environment.
“We simply can’t be everything to everyone, all the time,” says Emma Fox, COO of E Powered Benefits. “Advisors are meant to advise and counsel their clients. We’re often no good at technical, back-end stuff, and I don’t think anyone expects us to be. But a large portion of our responsibility is to present and recommend the best partnerships for our clients to get them to whatever goal they’ve set out to achieve.”
Related: Successful brokers rely on the power of partnerships
A common misconception is that the value of a benefits advisor is determined solely by the spreadsheets and numbers that they bring to the table, says Chelsea Whalley, COO and partner at J. Donovan Financial. “This is a very dated mindset and has created a runway for advisors who are willing to think bigger about the impact they can make on businesses with a well-rounded benefits program,” she says. “If advisors are doing their jobs adequately, they ultimately impact the financial, organizational and emotional well-being of employers and their employees.”
They do so by successfully designing programs that include both quality insurance solutions and non-insurance solutions that can offer items like technology, communications, compliance, taxes and payroll.
“This is the area where we have the most successful non-broker partnerships,” Whalley says. “Included in our non-broker partners would be attorneys, CPAs, capital investment firms, mental-health providers, physicians, vendors for our own agency, vendors for our clients, and property and casualty agencies.”
Ken Rosenfield, CPA, agrees. He is the founder and managing partner of Rosenfield and Co., which partners with J. Donovan Financial.
“Combining resources and technical skill sets always strengthens the ability to serve clients, especially on complex matters,” he says. “Also, dealing with a well-recognized, established and peer-reviewed CPA firm allows for a higher-quality client.”
“With good partnerships, an agency can fill its entire pipeline.”
If there were any doubts about the power of partnerships, the pandemic removed them. “Our partnerships have proved to be even more important to us during the pandemic,” Whalley says. “The past few years have allowed us to benchmark activity to others and realize there was no excuse to not produce. With good partnerships, an agency can fill its entire pipeline. Our sales are 90% produced with partnerships. Companies being remote or in the office has not impacted the role of our partnerships, because we already have the digital tools in place.”
Strong partnerships also helped E Powered Benefits smoothly transition to remote work. “Our method of communication changed, our patience increased, and our need for interaction grew as our lack of in-person engagement was prolonged,” Fox says. “If anything, I think our firm was able to strengthen many of our partnerships by doing our best to work long-distance, but also coming to understand that during a pandemic, things become a lot more personal.”
As a result of the pandemic, the conversation changed.
“Our partners used to talk about the weather or the next trip they were due to take for work, but now our conversations include respectful political discussion, clinical musings and personal accounts of our experiences over the past year and a half,” Fox says. “We all know each other a little more deeply than we did before, and that gives us so much more grace and empathy that we otherwise wouldn’t always have at work.”
Of course, collaborations are only as strong as the individual partners. Successful brokers put as much thought into selecting partners as they do clients.
Evaluate the need. “We are constantly evaluating our internal and external processes for our agency,” Whalley says. “When we notice a breakdown internally, that is the first notification that we may need to outsource and partner. For example, we recently noticed our account managers having trouble effectively logging every single call that they take throughout the day into our CRM. They’re busy, so executing the request and taking time to notate the entire call wasn’t happening consistently.
“We found technology that will upload every employee for all current clients into our CRM. When an employee calls in, my team will now know exactly who is calling and be able to access the information they need to solve the problem faster. And the call is transcribed into our CRM as it is happening.”
“Our non-broker partners probably are more essential to our clients’ success than we could ever be alone.”
Honestly assess internal capabilities. “I cannot possibly know every in-and-out of claims adjudication, regulations and contracts,” Fox says. “And likewise, the people we put in place who fill these gaps for us can always use our more intimate perspective to complete the picture they need. Our non-broker partners probably are more essential to our clients’ success than we could ever be alone. A broker who is taking credit for every successful component of the health plan is likely the same broker pointing a finger at a vendor for something that went wrong.
“We all have a responsibility to strive for a great outcome for our employers’ groups, just as we all take a little responsibility for the flubs we make along the way. Embracing a collaborative partnership both elevates your expertise and provides a little cushion when you find yourself having to regroup.”
Seek referrals. “Many of our best partnerships have come as referrals from organizations we trust, such as Q4i, or other colleagues in the industry who had success with a partner,” Whalley says. “It usually begins as an informal process, starting with a conversation to see if our beliefs align and if there is a strong basis to establish trust.”
It also pays to network with well-known bankers, law firms and other business owners in the market, as “they would typically know which accounting and law firms have a great reputation,” Rosenfield says.
Look for a cultural fit. “Ethical practice is essential for us to have a relationship with any broker,” he adds. “We pride ourselves on the quality of clients that we serve and only want to surround ourselves with quality strategic service providers. It’s so important to maintain a quality service team devoted to what is best for the client’s needs and requirements for the long term.”
E Powered Benefits takes the same approach.
“The right fit is so important, and we’ve learned that measuring the culture and tolerance of a workforce and the leadership teams is paramount to long-term success,” Fox says. “We ask honest questions and try to figure out if an organization or potential partner is mission-aligned. What motivates them? Do they have a specific purpose when it comes to working in this field? Why do they think they would be a good fit for this client in particular? I rely on people to answer honestly by giving them the opportunity to consider what the right thing is instead of focusing on the sales pitch and meeting a quota. And sometimes, we have to adjust and reevaluate for them or them for us. That’s what these partnerships are all about.”
Be humble. “I have a much higher regard for people who tell me about their teams rather than themselves,” Fox continues. “Without my partners and my team, I wouldn’t have been able to break the glass ceilings I have broken so far. I’m not fond of being on an island, and while someone else might have a bit more resolve than me or maybe they could withstand rough elements a little longer than I could, I guarantee you that a village can harvest more than a hunter. Even better if the hunter lives in the village, right?
“That’s not to say I am not capable or remarkable in my own right, but my partners elevate me and help me grasp the things I didn’t know or can’t yet understand, and I hope on occasion I do that for them, too.”
Simply put, one of the best ways to develop successful partnerships is first to be a good partner.
“Someone who feels respected and valued will put you at the top of their list every single time, so be someone that others want to prioritize,” Fox says. “Always remember that you have room to be better, even when you feel you’re at your best.”
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