The employees at your business are your assets. Therefore, it’s crucial that you do what you can to ensure that they are satisfied with working at your company. One way to do that is by offering them an attractive benefits package, which includes insurance, retirement plans, paid leave options, and more.
Now, determining what your employees will be interested in and analyzing that data can be time-consuming and challenging on the whole. Well, that’s where employee benefits consulting firms can help your company.
Benefits consultants are equipped with knowledge on existing benefits options, know how to research your company and its employees, and have access to information and tools that you may not have. This way, you’ll be able to select benefits options that are best suited for your company and are within your budget.
In addition to that, some benefits consultants may work with your company to implement the benefits packages you select for your employees. As a result, the implementation process is streamlined and saves your company the hassle of handling documentation and other work. Thus, this article discusses what a benefits consultant is, the services they provide to their clients, and how hiring one can help your business.
What Is a Benefits Consultant?
A benefits consultant is a professional who is responsible for advising businesses on employee benefits, different types of insurance, including health insurance, retirement plans, and various other products. Some benefits consultants specialize their expertise on one or more specific types of benefits, allowing them to provide sound and well-researched advice to their clients on how to select, purchase, and administer benefits.
Benefits consultants secure the trust of their clients by developing a relatively long relationship with their clients, providing them with professional advice during that period. A benefits consultant has access to various tools that are used to help their clients (employers) compile excellent benefits packages that can help attract new employees and retain existing ones. Therefore, these packages can increase employee satisfaction, which, in turn, will benefit the company. Thus, employee benefits consulting firms are crucial for businesses as they can establish and successfully run employee benefits programs.
Benefits consultants work for business, i.e., their clients, so their priority is their clients’ interests. That is why benefits consultants tend to operate work on a commission basis as it allows them to prevent influence from other benefits companies and insurance carriers. However, a benefits consultant receives a fee for additional services that include administering a benefits package, which often includes handling paperwork as well as compliance documentation.
What Do Benefits Consultants Do?
Benefits consultants provide various services for both businesses and individuals. Their services can be categorized into two. These include:
- Selecting benefits
- Implementing benefits
An employer can choose to use either one or both of the services mentioned above. In either case, employee benefits consulting firms help employers save money and time by providing them with excellent benefits packages for their companies.
What Are Some Advantages of Hiring a Benefits Consultant?
Hiring a benefits consultant for your business or yourself can help you get the best possible benefits packages for your employees. In addition to that, it helps to make the selection and implementation process simpler for you, which can save you both time and money. Here are some advantages of hiring a benefits consultant.
Benefits Consultants Help You Select the Best Package for Your Business
Benefits consultants can provide you with competitive benefits packages by informing you of existing companies in your geographic location and the respective industry. A good benefits consultant also polls employees from your company to determine benefits that are valuable to them. This way, your employees will be satisfied, which will reduce the turn-over at your workplace as well.
Benefits consultants perform in-depth analyses of your business in order to establish a budget that you can operate within. Also, they determine those benefits that offer tax advantages, among other types. Therefore, your benefits consultant can use this information to provide you with well-informed advice on which benefits you must offer to attract new employees and retain existing ones. The information from the poll will also help them determine what benefits your employees can afford. Once your consultant narrows done some of the best benefits options for your business, you’ll just have to select one that’s best for your company and within your budget.
Benefits Consultants Make the Benefits Selection Process Simple
It can be overwhelming for you, as an employer, to set up a benefits package for your employees. You will first have to determine the types of benefits you want to offer to your employees. After that, you’ll have to select specific benefits within each category. Some common benefits options that companies offer include
- Health insurance,
- Defense base act (DBA) insurance
- Retirement plans
- Life insurance
- Disability insurance
- Paid time off
- Student loan repayment
Therefore, the process of selecting a benefits package can be confusing. Each type of benefit must comply with a specific set of laws and regulations, and it has specific terminology associated with it. Retirement plans for employees that include pensions, 401ks, and IRAs have specific requirements regarding eligibility and contributions for employees. Considering that your benefits consultant will be dealing with all these details, you won’t have to. This will make the entire process much smoother for you. With that said, make sure that your benefits consultant is transparent about which benefits are best for your business and the fees that you’ll have to pay for. This way, you can be at ease knowing that your employee benefits plan is in secure hands.
Benefits Consultants Possess Significant Knowledge on Benefits
One of the greatest advantages of hiring a benefits consultant is that they possess knowledge on various aspects of benefits available and the companies that offer them. In addition to that, they also have a thorough understanding of the laws and regulations associated with various types of benefits. Therefore, their knowledge can allow them to advise you effectively on which benefits are best for your employees and, consequently, your company. A consultant will also ensure that your benefits plan complies with all laws and regulations so that you don’t incur any penalties later on.
A benefits consultant also has access to quotes from various insurers and other benefits companies. This way, you can select those benefits that are both appropriate and within your budget. So, this gives you the opportunity to compare the prices of different benefits options and select the best one for your business.
Benefits consultants Use Technology to Complete Tasks
Benefits consultants have access to various technological tools to help them complete tasks for your business. This advantage is especially useful for employers who need a benefits consultant for implementing benefits packages, as these tools are used for managing documentation for different types of benefits such as retirement plans or health insurance.
In the cases mentioned above, benefits consultants must ensure that your company’s employee benefits must adhere to the regulations and laws associated with them. Therefore, they will need to manage a mountain heap of paperwork and filings with the IRS. This process involves a lot of work and would cost you time and money. So, hiring a benefits consultant saves you the hassle of dealing with all the paperwork.
You also won’t have to spend money on training your employees to use the necessary technology for managing the documentation. Hiring a benefits consultant who’s experienced in using the necessary technology lowers the chances of errors as well.
Benefits Consultants Work Year-Round
Some benefits consultants work with your business year-round to ensure that all the benefits included in your employees’ package are implemented effectively. Therefore, they’ll answer any questions you may have about the benefits included in the plan at any time of year and not at the time of renewal only. In some cases, a benefits consultant may work a company’s human resources department to provide employees with information and advice on their benefits and other problems at the workplace. Working with the human resources department also allows benefits consultants to determine if any change is necessary for the benefits plan when there’s a change within the company’s team.
What Features Should Employee Benefits Consulting Firms Have?
Now that you understand what the advantages of hiring a benefits consultant are, you should know what to keep in mind when selecting a benefits consulting firm for your business. Excellent benefit consultants have four vital features that improve the quality of their services. These features are discussed in detail below.
Benefits Consultants Should be Knowledgeable
An exceptional benefits consultant is a knowledgeable consultant. Your benefits consultant should be well-versed in compliance, insurance, risk and disease management, the health marketplace, and much more. They should also have enough knowledge of laws and regulations for every benefit package they help you select or implement.
Make sure to look for an experienced benefits consulting firm or your business. Read what their clients say about the quality of their work. The firm should have a track record of staying updated with all the laws and regulations associated with the benefits they provide consulting services for. Working with a benefits consultancy firm that isn’t aware of said laws and regulation may end up costing your that could cost your business millions of dollars in penalties and fees.
Benefits Consultants Should be Transparent
Keep an eye out for employee benefits consulting firms that take transparency seriously. This means they should be transparent about each cost or fee they charge and the services they provide. Transparency can help build a long relationship with your benefits consultant, and it’ll give you peace of mind when you work with them. Your consultant should also be honest so that they can help you manage your expectations about a benefits package. This way, you’ll be satisfied with what you get as well.
Benefits Consultants Should be Collaborative
To help you select and/or implement a benefits package, your benefits consultant should work alongside you during the selection process. Therefore, your consultant must learn as much as possible about your company so that they can select the best possible benefits package for you, specifically. Try to avoid a benefits consultant that applies generic solutions for their clients. This way, you can stay clear of benefits that aren’t as attractive as they may seem.
You must ensure that your benefits consultant can:
- Connect a set of goals to your business’s benefits package
- Carry out all the stated goals when implementing the benefits package
- Manage the necessary tasks associated with your benefits package effectively
Therefore, your employee benefits consultant should be able to think strategically and keep your business’s needs in mind when selecting and implementing a benefits package.
Benefits Consultants Should Provide Year-Round Support
Make sure to work with a benefits consulting firm that can provide your company with support throughout the year. Therefore, look for a firm that has a large team of experts, as you or your employees may need answers to questions regarding the benefits package. With that said, make sure that the firm provides your company with experienced personnel. In some cases, employee benefits consulting firms hire inexperienced professionals so that they can expand their team. An inexperienced benefits consultant may offer you inaccurate advice, which can cause problems for your business in the future.
Last Few Words on Benefits Consultants
There are various employee benefits consulting firms out there, so don’t be quick to select one. Go over the firm’s website and their portfolio to get a good idea of the types of benefits they specialize in. Ideally, you should look for an experienced team that has significant knowledge of the types of benefits that you’re looking to include in your employees’ benefits package. You should also try to read reviews about the firm online so that you get a good idea of the quality of the services the consultants provide.
You must remember that benefits consultants work for your firm; this means that they should keep your business’s needs and requirements in mind when selecting and implementing benefits packages. Once you have an excellent employee benefits package, you can significantly increase employee retention and attract new applicants as well.
Digital Marketing Director