{"id":92,"date":"2017-05-08T14:10:05","date_gmt":"2017-05-08T14:10:05","guid":{"rendered":"http:\/\/www.comprehensivebenefitservices.com\/Blog\/?p=92"},"modified":"2017-05-08T14:10:50","modified_gmt":"2017-05-08T14:10:50","slug":"fire-your-employee-benefits-broker-now","status":"publish","type":"post","link":"http:\/\/www.comprehensivebenefitservices.com\/Blog\/2017\/05\/fire-your-employee-benefits-broker-now\/","title":{"rendered":"Fire Your Employee Benefits Broker Now!"},"content":{"rendered":"

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You need to fire your employee benefits broker now.\u00a0 There\u2019s no time to waste.\u00a0 There are imminent changes in the employee benefits industry that will impact your business, both negatively and positively, and your current broker is most likely not on top of, let alone aware of, these changes.<\/p>\n

Your broker will not be able to assist you.\u00a0 Your broker doesn\u2019t understand the changes and he or she doesn\u2019t understand the opportunity.\u00a0 Your broker doesn\u2019t think it\u2019s their responsibility, and even if they did, they don\u2019t have the resources to help you.\u00a0 You need an employee benefits advisor that understands these changes, has taken steps to mitigate the negative and leverage the positive, and has developed the tools and resources to help you.\u00a0 Here is what you need to know.<\/p>\n

Ducks in a Row<\/strong><\/p>\n

The compliance burden for companies has increased dramatically in the 21st<\/sup> century.\u00a0 The number of required human resources and benefits notices and the required reporting has increased, especially in the last 5 years.\u00a0 Most companies are using paper forms for everything, and most companies are not compliant.\u00a0 There isn\u2019t a company that I\u2019ve met with that wasn\u2019t out of compliance in some respect, and often in many ways.<\/p>\n

I recently met with the president of a company that still uses a paper process and physical storage for collecting and storing federal I-9 forms which are required for verifying the identity and employment authorization of all individuals hired for employment in the United States.\u00a0 This information is kept in unsecure file cabinets in each of this company\u2019s 18 locations.\u00a0 As time goes on these documents get discarded or become susceptible to damage.<\/p>\n

\u201cThat\u2019s not a problem for us.\u00a0 We don\u2019t hire many foreign-born workers,\u201d remarked the president when I asked him about the company\u2019s process for I-9s.\u00a0 What he didn\u2019t know was that a company that cannot produce the required I-9 documentation on audit may be fined up to $2,160 per I-9 for failure to comply with the requirements.\u00a0 It doesn\u2019t matter if the employee ultimately was eligible.\u00a0 If you don\u2019t have the required paperwork you\u2019ll face a fine, so if you get audited you better have your ducks in a row.<\/p>\n

Companies are increasingly facing documentation requirements like these and they need help to make sure they have their documentation in order, but what does this have to do with my employee benefits broker you might ask?<\/p>\n

Help!\u00a0 I Need Somebody<\/strong><\/p>\n

Technology can ease the compliance burden and assist with the organization and storage of required documentation.\u00a0 In the last several years, there has been a dramatic increase in the number of online tools that simplify onboarding tasks, employee benefits enrollment and management, and compliance and reporting.<\/p>\n

Some of these tools are proprietary, offered only by insurance carriers and payroll companies.\u00a0 There are, however, several independent platforms that emphasize an open architecture that some brokers are including as part of their services to their clients.<\/p>\n

Technology is also helping in ways that may not be as obvious.\u00a0 For example, technology is easing the burdens for me and my staff, allowing us to focus on more complex issues that impact our clients.\u00a0 As late as 5 years ago, we focused a large part our time on quoting, processing applications, and resolving billing issues.\u00a0 Forms were faxed or sent through the US Mail.\u00a0 Our file cabinets were stuffed with old applications and insurance carrier brochures.\u00a0 Technology has automated or streamlined these processes.<\/p>\n

The bulk of our time is now spent focused on our clients\u2019 processes: compliance, human resources, employee benefits management.\u00a0 We\u2019re focused on learning how the technology can streamline these processes, and we\u2019re assisting our clients in the implementation of these tools.\u00a0 Do you have a plan to implement these tools, and, if so, who\u2019s helping you?<\/p>\n

DIY v. Professional<\/strong><\/p>\n

We\u2019ve all taken on a do-it-yourself project only to discover that it was a lot more complicated than we initially thought.\u00a0 Most companies are do-it-yourselfers, but they don\u2019t realize they\u2019re navigating the world of employee benefits, human resources and compliance on their own.<\/p>\n

This is borne out of circumstance and not by design.\u00a0 Companies believe their vendors have \u201cit\u201d covered, but payroll companies largely stick to payroll, insurance carriers and brokers are focused on product, and technology vendors focus on their tools.\u00a0 None of them are fiduciaries and none of them takes responsibility for putting it all together.\u00a0 This leaves companies responsible for developing the required expertise to navigate an ever more complex environment, and they often fall short.\u00a0 \u201cIf it was important I would have thought that someone would have told us about it,\u201d presumed one company owner I spoke to recently.\u00a0 Don\u2019t bet on it.<\/p>\n

Now more than ever, companies need a strategic advisor whose sole purpose is to help companies navigate and simplify this complex environment.\u00a0 Who better than the employee benefits broker to step into this void to render the required advice and expertise?\u00a0 The employee benefits advisor has the benefit of experience across multiple companies and multiple industries.\u00a0 The employee benefits advisor can offer insight and best practices because of this experience, however not any old employee benefits broker will do.<\/p>\n

Trouble with the Curve<\/strong><\/p>\n

Remember stockbrokers?\u00a0 They don\u2019t exist anymore because the market and the needs of individual investors changed in the last 50 years.\u00a0 Mutual funds\u2019 diversity minimized the risk to investors and technology provided investors with information so they no longer needed to depend on someone to tell them in which stocks they should invest.\u00a0 Technology also reduced the cost of trading, wiping out broker commissions.<\/p>\n

These changes also gave rise to a different animal; the financial advisor whose interests were more closely aligned with those of their clients.\u00a0 Like the financial advisor, the employee benefits advisor is poised to step into this changing market and deliver unique value to companies, but not everyone will make the transition.<\/p>\n

Most brokers have largely been dependent on third parties to deliver the expertise and unique value employers require.\u00a0 These brokers are simply salesmen for these third parties.\u00a0 Like the stockbrokers of the 20th<\/sup> century, these employee benefits brokers\u2019 value is limited.<\/p>\n

Baseball is a wonderful sport.\u00a0 Most people don\u2019t realize that players often toil away for years in the minor leagues to master the skills necessary to compete in the major leagues.\u00a0 It is during this time that players are exposed to \u201cbreaking\u201d pitches: change-ups, knuckleballs, sliders, and curve balls all of which are designed to deceive the hitter and throw off his timing.\u00a0 This is important because when they reach the majors, players are scouted by opposing teams so that their weaknesses can be exploited.\u00a0 Most cannot adapt.\u00a0 Most brokers have not, and will not, adapt to the market changes we\u2019ve discussed, and like minor leaguers who can\u2019t hit a curveball, they\u2019ll simply washout.<\/p>\n

Back in the day, employee benefits were boring but easy because clients didn\u2019t seem to expect much and would often entertain other brokers on the possibility that they could get a better price.\u00a0 It annoyed me that clients saw me as interchangeable with other brokers or representing an insurance carrier.\u00a0 That kind of relationship was dysfunctional, and like all bad relationships it doesn\u2019t have a future.<\/p>\n

You don\u2019t know how happy I am that the market has changed.\u00a0 I know brokers who think clients expecting more from them is a bad thing.\u00a0 Seriously?\u00a0 I welcome the higher expectations.\u00a0 The more I provide to my clients the more valuable I am to them, and the relationship becomes mutually advantageous. \u00a0I\u2019m freed up to focus on more complex issues which I\u2019d much rather do than quoting and processing applications, and my customers benefit by receiving advice that helps them solve more complex issues.<\/p>\n

Expensive Alternatives<\/strong><\/p>\n

Some companies let their brokers off the hook by employing a third party\u2019s solution, such as those offered by payroll companies.\u00a0 These solutions tend to be very expensive.\u00a0 \u201cWith the price they want to charge they must all be driving Maseratis,\u201d remarked one business owner.\u00a0 Yes, payroll companies are gouging you, their customer.\u00a0 They\u2019re not your trusted advisor, and, no, they do not have your best interests at heart.\u00a0 They serve their shareholders, not you.<\/p>\n

A few years ago, I met with a couple of representatives from a publicly traded payroll company.\u00a0 They boasted about the number of \u201cC-Level\u201d meetings they had each week.\u00a0 They\u2019re high powered corporate salespeople whose job is to convince you to buy their stuff and nothing more.\u00a0 That\u2019s what they get paid to do.\u00a0 It blew my mind how many company executives would take meetings with these guys, and it still does.<\/p>\n

The sales guys also walk away once the \u201csale\u201d has been completed, handing off implementation responsibilities to someone who is unfamiliar with your business.\u00a0 A large percentage of companies that have implemented onboarding and employee benefits management systems have expressed dissatisfaction with the implementation process.\u00a0 Too many hand-offs and not enough ownership and accountability.<\/p>\n

We begin our implementation process by sitting down with you and your staff to lay out all the steps.\u00a0 A timeline is established.\u00a0 Responsibilities are assigned.\u00a0 Accountability is built-in to the process.\u00a0 Like an architect, I continue to be involved in the process to ensure that everything is done according to plan.\u00a0\u00a0 This is what your trusted advisor should do.<\/p>\n

It\u2019s Time<\/strong><\/p>\n

You need to fire your employee benefits broker now.\u00a0 The employee benefits and compliance landscape is changing and your broker is most likely behind the curve, leaving you to consider more expensive options.\u00a0 You need an employee benefits advisor.\u00a0 If you\u2019re ready to make the move, need more convincing, or would like to learn how we\u2019re bringing exceptional value and advice to our clients call me at (952) 237-6956 or email me at mdmowski@comprehensivebenefitservices.com<\/a>.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

You need to fire your employee benefits broker now.\u00a0 There\u2019s no time to waste.\u00a0 There are imminent changes in the employee benefits industry that will impact your business, both negatively and positively, and your current broker is most likely not on top of, let alone aware of, these changes. Your broker will not be able\u2026 Read More »<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-92","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/www.comprehensivebenefitservices.com\/Blog\/wp-json\/wp\/v2\/posts\/92","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.comprehensivebenefitservices.com\/Blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.comprehensivebenefitservices.com\/Blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.comprehensivebenefitservices.com\/Blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.comprehensivebenefitservices.com\/Blog\/wp-json\/wp\/v2\/comments?post=92"}],"version-history":[{"count":0,"href":"http:\/\/www.comprehensivebenefitservices.com\/Blog\/wp-json\/wp\/v2\/posts\/92\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.comprehensivebenefitservices.com\/Blog\/wp-json\/wp\/v2\/media?parent=92"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.comprehensivebenefitservices.com\/Blog\/wp-json\/wp\/v2\/categories?post=92"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.comprehensivebenefitservices.com\/Blog\/wp-json\/wp\/v2\/tags?post=92"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}