Optimizing the Important Role Brokers Play in Employee Retention
Quick look: With a growing emphasis on employee retention over the past several years, many brokers seek to help their clients strengthen their footing through elevated benefits offerings. Fortunately, with the support of a professional employer organization (PEO), brokers can expand their services, stay flexible in an evolving market, and give small and midsized businesses (SMBs) the personalized attention they need to remain successful.
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Over 60% of human resources (HR) teams say retaining employees is a top priority, and one of the most effective ways to achieve this is by offering competitive benefits.
Many workers have higher expectations for employee benefits than in previous years. Often, what was once considered a competitive benefits package has now become the baseline. For instance, there has been a growing demand to standardize mental health and financial wellness benefits, in addition to traditional healthcare and 401(k) plans.
Additionally, workers increasingly value these offerings, with Bank of America research showing that almost 40% of employees report staying at their jobs because of their benefits.
Quit rates are currently low, a phenomenon nicknamed “The Big Stay,” but an uptick is inevitable. As such, many companies are revisiting their strategies to strengthen their position ahead of future labor market shifts. Reduced turnover means less lost institutional knowledge and a better bottom line (the cost to replace an employee ranges from one-half to twice as much as their annual salary).
Since benefit satisfaction coincides with job satisfaction, brokers play a direct role in their clients’ employee retention and overall growth. Here are three ways to contribute to SMBs’ success and how a PEO partner can enhance those efforts.
1. Offer benefits beyond the basics
While health insurance and retirement savings plans remain essential, employees today seek a wider range of perks from their companies to accommodate evolving needs.
Notably, there’s been a rise in the request for mental health and wellness benefits, as well as supplementary benefits like legal and financial services, tuition reimbursement, and pet insurance. Considering what is relevant to employees, versus delivering the minimum, keeps employers more competitive.
It also illustrates a willingness to invest in employee health and well-being, which is shown to improve work productivity, employee engagement, and overall company morale. However, it’s not about simply adding more benefits but incorporating the ones that will be the best fit.
✓ How a PEO can help: PEOs like ExtensisHR can negotiate and provide access to comprehensive benefits packages featuring mental health providers and services. They can also facilitate employee assistance programs (EAPs) offering free, confidential assessments, short-term counseling, and referrals to address both personal and/or work-related problems. Diverse offerings are part of what makes a benefit plan successful, and brokers can immediately expand a client’s options by working with a PEO.
2. Educate clients and their staff
With healthcare costs rising and benefit options becoming more complex, employers increasingly rely on brokers for guidance, not only to optimize plans but also to share changes with their workforce.
Many companies invest heavily in reshaping benefits but struggle to clearly explain those updates to employees. As advisors, brokers must stay current on changing regulations and emerging benefits trends to give clients the best options to retain their best talent. Equally important is helping clients convey benefit value in a way employees can appreciate.
✓ How a PEO can help: Having a PEO partner delivers an instant extension to HR experts who refer to industry trends, economic forecasts, and other external and internal data to guide successful benefit decisions. Additionally, a PEO provides clients with benefit enrollment education, hands-on assistance, vendor recommendations, and more, to give employers and employees an in-depth look at what their plans entail.
3. Personalize benefit packages
For many employees, benefits are just as important, if not more so, than their salary. However, with multiple generations making up the workplace, it’s essential to address that different benefits resonate differently across demographics.
While some staff may be drawn to flexible work schedules, others may prioritize retirement planning. As people enter different phases of their lives, these needs typically shift. Brokers and their clients must be ready to customize plans accordingly, which is why many leverage the expertise of a PEO partner.
✓ How a PEO can help: PEOs grant access to premium employee benefits from top-tier providers at competitive prices. Ordinarily, these are unavailable for SMBs, putting them at a disadvantage in recruiting and retention. Further, PEOs like ExtensisHR can tailor clients’ benefit plans and adapt them as benefit needs change over time.
Beyond benefits: Increase your value with ExtensisHR’s full suite of HR services
Competitive employee benefits are a cornerstone of retention success, but they’re just one piece of the puzzle. From recruiting to compliance, every aspect of HR plays a vital role in keeping top talent. The right PEO partner can deliver on all fronts, helping your clients build a strong, engaged workforce.
In addition to our comprehensive benefits services, ExtensisHR also provides:
HR services and recruiting
All-inclusive HR guidance and management covers everything from payroll and tax administration, to talent acquisition and retention strategies that streamline and simplify processes.
How it affects retention: Payroll errors lead to an erosion of trust, financial stress, reduced morale, and more. Further, effective recruiting means the right people are hired the first time, increasing the chance they’ll stay.
Risk and compliance management
Monitoring and maintenance of ever-changing compliance regulations minimize a company’s risk, controls costs, and frees up time, allowing them to focus efforts on other areas of business growth.
How it affects retention: Adhering to employment laws helps clients foster a fair, safe, transparent workplace environment, and demonstrates credibility and trustworthiness to staff.
Centralized HR platform
ExtensisHR’s proprietary Work Anywhere® platform and mobile app enables leaders and employees to manage daily HR tasks, optimize workflows, and synchronize goals all in one intuitive mobile-friendly system.
How it affects retention: Employees can quickly and easily enroll in benefits, review their paychecks, submit time-off requests, connect with ExtensisHR’s customer service team, and more, enhancing their overall experience.
PEO Premier®
Brokers can also extend the option of ExtensisHR’s PEO Premier® services to their clients. PEO Premier® is a fully managed concierge approach to HR, which provides SMB leaders with additional resources exclusively assigned to their business. Additionally, clients have access to enhanced benefit offerings to maximize recruiting and retention efforts.
How it affects retention: PEO Premier® gives worksite employees access to executive-level perks, experiences, and benefits plans, ultra-personalized HR guidance, and more, significantly enhancing their workplace experience.
Benefit trends and compliance regulations are constantly changing. Being closely connected with a team of trusted HR experts is the advantage many clients seek.
By developing and managing competitive benefit packages, brokers directly influence SMBs’ employee retention success. And partnering with a PEO like ExtensisHR that focuses on customer service and personalization allows you to go above and beyond for your clients, ultimately protecting and expanding your book of business.
ExtensisHR is here to help your clients retain talent and support your goals as a broker. Unlock shareable employee retention tips in our free playbook, or contact us to learn more about a partnership.
