5 questions to help brokers select the right benefits tech vendor

Those who work in benefits consulting are at a crossroads. The last two years have disrupted just about everything we do, and the clients we’re serving look a lot different than they used to. The physical, mental and financial strain of COVID-19 has driven employers to support their workforce by investing more than ever in their benefits packages, all while facing the pressures of ever-rising health care costs.

Meanwhile, employees are working remotely, dispersed across the country, and harder to reach than ever. And unfortunately, they’re not getting the memo about all of the shiny new benefits offerings you and your clients have worked so hard to put together: our research shows that 2 in 5 employees say they don’t understand the benefits communications they receive.

Even worse, our old benefits communication playbook no longer works. That thing we call the benefits portal? Employees only visit it once a year, according to recent Jellyvision study, while 50% of employees aren’t confident that they know how to find the best care at the lowest cost. That all adds up to dollars down the drain: C-suite leaders say 53% of their healthcare spending is wasted due to benefits confusion.

So if there’s ever been a time to reinvent our benefits communication strategies, this is it. Let’s help our clients maximize their benefits investment, and finally arm employees with the information they need to make smarter benefits decisions.

It all starts with a benefits engagement platform.

Why invest in benefits engagement technology?

Employee benefits communication software eliminates confusion and stress.

Not surprisingly, 52% of employees say choosing their benefits is stressful. Remember that it’s like a foreign language to them; but they also know a wrong move could have big consequences. That’s probably why 1 in 4 employees spend more than seven hours researching their benefits before making selections — time they’d probably rather spend on other things.

And because they’re so frustrated, employees are asking for your help. They trust you have the answers they’re looking for, and 1 in 5 employees said they want more benefits education. They’re not getting what they need through traditional methods, and they really don’t want to spend more time in meetings or reading benefits materials. They want a more targeted approach — to get the information they need in less time.

That’s where employee benefits software can come in. It breaks down benefits offerings and complex plan designs into easily understandable terms, and offers personalized recommendations based on an employee’s own unique needs.

The best part? It only takes about 15 minutes on average — a far cry from the 7+ hours employees spend doing research on their own. And after using employee benefits technology, 85% of employees better understand their benefits. That means happier, more satisfied employees who don’t dread choosing and using their benefits, and who also recognize the value of understanding them

It saves you (and your clients) time.

The right benefits engagement tool can empower your brokerage and your clients in many ways. In fact, 70% of benefits consultants say that technology has increased their overall efficiency.

At the end of the day, you don’t have time to sit down with each individual employee and offer them personalized benefits recommendations (even though 41% of employees say that’s what they’d prefer). So a benefits engagement tool is a scalable and consistent way to show employees which plans are right for them based on their own personal needs, and offer automated recommendations year-round without spending hours on email campaigns and other communication initiatives.

How to evaluate a benefits tech vendor

Even if you don’t do a formal RFP process, vetting a few vendors is always a good idea so that you get a full picture of your options. Remember to ask detailed questions about pricing (i.e., product cost, implementation fees, etc.). No one enjoys surprises after they’ve already signed the contract.

Let’s review five critical questions to ask that will help you select the right benefits tech vendor.

1. How long does implementation take?

Make sure you understand the full timeline for set-up from start to finish. Who will be responsible for implementation? What information does the vendor need from your client or your team in order to get started? How will it work with your clients’ tech platforms?

An excellent benefits tech tool shouldn’t take more than a few weeks to get up and running. Plus, the solution should complement or integrate with current technology and processes, not bottleneck it.

2. What does customer support look like?

Even top-tier tech doesn’t add up to much when a vendor won’t even talk to you. Once your new platform is set up, who will be there to support you? Can you get in touch with a human? Is your tech vendor reaching out to you to understand what’s working or not for you or your clients? Partners don’t hide, so avoid settling for submitting requests via a portal, general inbox or through a chatbot. An excellent vendor will always foster an ongoing conversation.

Plus, great vendors will have talking points and resources you can use when you pitch to the people holding the purse strings. After all, it’s these valuable selling points that will win the support of stakeholders.

3. What’s their reputation?

Building your practice required nothing less than blood, sweat, and tears. Your reputation is everything, and your team works diligently to maintain it. Like it or not, the partners you contract are an extension of your team and a reflection on your firm, so they need to have the credentials to match.

We encourage you to do your due diligence by evaluating a vendor’s reputation, integrity, and credibility.

Whether it’s a startup or a well-established company, try to learn as much as possible about the vendor’s reputation. Remember, working with a startup can have its perks. Startups are sometimes more willing to throw in more “goodies” to win your client’s business. All new market entrants will experience bumps in the road; however, an excellent vendor won’t promise a seamless implementation when rolling out new products or features. That’s a red flag.

4. What kind of ROI can you expect?

Great vendors work hard to understand objectives, track metrics over time and are able to communicate clearly how their product has helped you reach goals. During the vetting process, be sure to get a sense of how the vendor defines and measures success, and ask for case studies with cold, hard numbers to understand what kind of return on your investment your clients can expect.

5. What’s this going to cost us?

Talking money is never easy, but price plays a huge role in any tech buying decision—and the pandemic has made overall cost more significant than ever. In fact, when we surveyed our broker partners earlier this year, they told us overall cost was the number one most important factor when choosing a new vendor:

So make sure you get a sense of all of the costs associated with the tech vendors you vet. Ask detailed questions about when you’ll be billed, how often, and if there are any implementation, maintenance, or other add-on fees you’ll be responsible for.

At the end of the day, plenty of excellent benefits tech vendors exist. The tricky part is finding one that fits your brokerage and clients well. The above tips will help you narrow down your choices so that your team can focus on what really matters.

Keith Vallera serves as Jellyvision’s VP of Channel Sales. Before leading the Channel Sales team, he worked in Operations, learning everything there is to know about Jellyvision’s benefits engagement platform, ALEX, including his favorite ice cream flavor. When Keith is not working, he enjoys spooky movies, pickleball, and hiking.