How AI Highlights the Human Advantage for Brokers
Quick look: Every industry is being introduced to the idea of integrating AI into their daily processes. Though there are many unknowns when it comes to this next phase of technology, AI can be an asset for brokers, freeing up time for them to focus on more personalized strategies and services.
Artificial intelligence has become part of the daily conversation among all industries. Leaders want to know how it will be used, and if it’ll be beneficial. And, as with any technology, there have been trial runs to figure out how to extract the most value.
From an HR perspective, AI functions and tools, particularly analytics, are guiding business leaders to make better decisions when choosing the best benefits for their employees. On some level, it evens the playing field for small- and medium-sized businesses (SMBs) when competing with larger corporations.
AI can provide access to data about which benefits are most relevant among their workforce and point to cost savings when comparing different plans. However, like all AI-generated services, a human element is necessary to provide context to the complexities benefit planning entails.
Despite its AI growth, there will always be a need for quality control and human discernment when making decisions regarding a company’s growth. Brokers find AI helps free up time, so they can focus on providing enhanced service to their clients, part of which includes partnering with a professional employer organization (PEO) to tailor benefits toward each client’s specific needs.
In light of the excitement of exploring the newness of AI, a tried-and-true commitment to strategy and customer service will never get old.
The added value of a person-to-person approach
AI tools are best used to streamline repetitive tasks to leave room for creative planning and solutions. The world of benefits is ever-changing, and the advantage of working with a PEO is the foresight to think ahead and be proactive.
A PEO offers broker clients premium benefits from top providers at competitive prices. AI can be a complementary tool in the delivery of benefits but when relied on as a standalone, it’s not a sustainable strategy. The human edge of a dedicated HR team is what aligns benefits with clients’ growth goals and ensures they maintain compliance.
As brokers continue to evolve their position into a larger consultative role, AI can save time and allow them to focus on what’s next regarding benefit trends, workforce adjustments, and client expectations.
Client-centric solutions start with voluntary benefits
An important part of meeting client expectations is expanding its voluntary benefits. Brokers have already seen a rise in voluntary benefits requests over the past few years.
According to the 2024 BenefitsPRO Voluntary Benefits survey, 56% of brokers reported voluntary benefit sales were much higher in 2023 compared to 2022, and 85% of brokers expect to see voluntary business become an even larger part of sales in the future.
As inflation has caused healthcare costs to go up, employees are constantly on the lookout for supplemental healthcare benefits and other affordable, accessible care options to support their mental, financial, and long-term health needs.
A PEO partner works closely with broker clients to anticipate the latest benefit trends, while also gathering employee information from individual work populations to understand unique demands. These often include:
Mental health and well-being programs
According to the National Alliance for Mental Health, over half of employees (52%) reported feeling burned out in the past year because of their job, with 33% noticing their productivity suffering because of their mental health. Yet, a majority (62%) of employees reported feeling uncomfortable sharing about their mental health problems.
Offering solutions through an Employee Assistance Program (EAP) gives employees free, 24/7 access to tools, resources, and referrals to help them manage their mental health challenges, both at work and in their personal lives.
Employees receive support through short-term counseling, confidential assessments, and educational programs. An EAP also provides caregiver benefits, such as elder care assistance, family planning, and childcare, all of which have become critical for many families.
Student loan repayment
Millions of Americans are faced with federal student loans, which causes financial stress when trying to balance debts and saving for retirement. The CARES Act allows companies to extend annual contributions to tuition assistance to offer student loan repayment assistance as well.
Exploring this option can ease some of the greatest financial stressors for employees.
Additionally, as with the mental health and caregiver benefits of an EAP, employees also have access to financial services and programs for additional assistance with their savings and retirement goals.
These are a few examples of what’s possible when crafting a customized benefit plan. With multiple generations making up the workforce, offering a standard, one-size-fits-all solution no longer appeals to today’s employees. To continuously recruit and retain high-quality talent, brokers are bridging the services gap by collaborating with a PEO.
Finding “real” solutions in the era of AI
Widespread enthusiasm has driven many business leaders to quickly jump on board with AI implementation for fear of being left behind. However, research shows generative AI has already reached the “peak of inflated expectations.”
AI may quickly be able to deduce what’s available, yet a human element is necessary to explain benefit value. Without consistent education and communication, employees may be unaware of what is being offered to them. Moreover, it can put employers at risk for non-compliance without quality assurance from professionals who are constantly tracking changes to the law.
Mimicking human actions can only go so far; there’s no replacement for the real thing. It isn’t necessarily a differentiator for brokers and SMBs anymore, as companies are encouraged to temper their expectations and test AI use with caution.
As a broker-friendly PEO partner, ExtensisHR instills confidence and reliability among SMBs to drive results. With a history of success offering comprehensive HR and benefit services, ExtensisHR knows how to adapt to a changing industry while remaining a trusted partner among brokers and their clients.
For more information about how we can help you expand your scope of service and grow your book of business, contact ExtensisHR today.
