Quick look: The competitive landscape for brokers is expanding. As employers seek more from their benefits (and those who advise on them), they’re looking beyond traditional offerings to see what else their broker partnerships can deliver in terms of both short- and long-term value, which leaves a perfect space for a PEO solution to be introduced.
Brokers have taken on a greater advisory role for their clients in recent years, as employers seek fresh solutions for their benefit needs. A standard selection of offerings may have worked well in the past, but it’s likely time to diversify them in order to differentiate themselves from the competition.
Expanding a broker’s benefits portfolio can be a strategic move to meet evolving market demands. To stay current with industry trends and maintain strong client relationships, here are five broker signs it’s time to diversify.
1. Market and industry trends are changing
Though every company has specific requirements, one thing all business leaders can agree upon is access to customized options. When a portfolio isn’t current with the times, it gives the chance for the next broker to swoop in and show they have more to offer.
By expanding to a wider range of insurance products, such as health, dental, vision, life, disability, and retirement plans, brokers can attract a broader client base and cater to varying needs. Portfolio diversification can also help mitigate risks associated with dependency on a single product or market segment. It allows brokers to stay flexible to changes rather than be limited by only a few types of plans or strategies.
2. You’re losing clients to other brokers
Clients often prefer to work with brokers who can provide comprehensive benefit solutions. Expanding the portfolio enables brokers to better serve their existing clients, which enhances client satisfaction and loyalty. Satisfied clients are more likely to renew policies and refer new business, contributing to long-term success.
Introducing a professional employer organization (PEO) solution has become a popular way for brokers to add value and retain clients. Among its many advantages, a PEO provides Fortune-500 level benefits for small- and medium-sized businesses (SMBs) so they can stay on top of their recruiting and retention efforts without compromising their budget.
3. Conversely, you’re not bringing in new business
Viewed simply, brokers who present a wider range of benefits have a competitive edge, but they can truly be a leader by connecting clients to a central place to handle HR needs. This attracts new clients and retains existing ones who value the convenience of obtaining multiple benefits through a single broker.
By being the bridge to a PEO solution, brokers give their SMB clients access to HR services, including benefit management, recruiting and retention, and risk and compliance expertise, among other HR responsibilities. These are tailored to each company to maximize value and promote company growth.
4. Clients are asking for benefits you don’t sell
The insurance and benefits landscape is continually evolving. Brokers must stay abreast of emerging trends and respond to changing client demands accordingly. Traditional benefits like medical health plans and retirement savings options remain valuable to SMB leaders, though should be supplemented by other employee-preferred options.
Expanding a benefits portfolio allows brokers to align with market trends, such as the growing interest in wellness programs, telemedicine, and flexible benefit plans, ensuring they remain relevant and attractive to clients. A PEO solution considers these, as well as employee assistance programs (EAPs), concierge medicine, and healthcare advocacy, which give SMB leaders and their employees greater benefit personalization.
5. Your revenue is decreasing
Offering a broader array of benefits can also lead to increased revenue opportunities. While expanding the portfolio may involve upfront investments in training and resources, the potential for higher sales and commissions can justify these costs. Additionally, cross-selling potential arises when clients purchase multiple insurance products, which further boosts revenue.
Brokers can set themselves apart and generate higher revenue by collaborating with a team of HR professionals who support brokers in growing their business. As a broker-friendly PEO, ExtensisHR provides a way to extend the scope of services with a person-to-person approach.
In short, a PEO solution gives brokers and their clients more. More options, more customization, and more freedom to grow. It elevates brokers’ efforts in a partnership where everyone benefits. ExtensisHR’s comprehensive services include:
- HR guidance and support – Everything from taxes to talent management is part of an extensive suite of HR services, which gives more time back to SMB leaders to focus on other areas of growth.
- Benefit planning and administration – Custom strategies are built to accommodate traditional, supplemental, and voluntary benefits, taking into account the ones which appeal to employees most.
- Risk and compliance management – Industry trends aren’t the only thing rapidly changing, so are employment regulations. With a PEO solution in place, brokers can feel confident knowing their clients’ compliance needs are met.
- HR technology – The Work Anywhere® platform goes above and beyond the mobile ability of SMBs to handle HR tasks. It gives leaders insights into personalized data through organized clouds which will drive more effective decisions.
In addition to this wide range of HR services, brokers can also expect:
The commission structure gives brokers control over their earnings. They are paid through highly competitive, residual-based compensation.
Seamless RFI process
There are three steps to achieving a RFI: identifying opportunities, understanding client demands, and delivering a customized proposal. This streamlined process quickly produces a quote within a few business days.
Established client relationships
Collaboration is key to preserve long-term client relationships and bring on new ones. Through a full-service approach, brokers receive full support at every step of the sales process to make it easier to diversify and grow a portfolio.
Brokers and SMBs have experienced their fair share of industry shake ups over the past several years. Through a diverse set of offerings and wide-ranging expertise, ExtensisHR helps clients drive performance and reach business goals.
If you’re interested in how a PEO solution can diversify your portfolio, contact our broker sales managers today.