What Brokers Can Be Thankful for in 2024

Quick look: The season of gratitude is here, and it’s an ideal time for brokers to pause and take stock of the many things they are grateful for. Thankfully, market trends are pointing toward a continued need for benefits and PEO brokers, and the right HR outsourcing partner can help them continue to meet those demands.

Thanksgiving is quickly approaching, as is the new year, making it a natural time to reflect on what has gone well this year and what may lie ahead in 2025.

Brokers across the United States should be especially grateful. According to market research firm Technavio, 42% of the human resources (HR) outsourcing market’s expected growth between 2023 and 2028 is slated to come from North America. Further, the market is expected to see an incremental increase of $13.3 billion during this period.

These industry trends reiterate your clients’ ongoing need for your services, something worth adding to your broker gratitude list.

Your clients depend on you—and will continue to do so

The business landscape constantly transforms, but one thing remains steady: small- and medium-sized employers will continue to turn to their brokers to help them differentiate themselves in the market. From offering competitive employee benefits packages, to providing recruiting support and performance management guidance, brokers play a key role in helping these businesses succeed.

Employee benefits

Your clients rely on you to present cost-effective benefits packages that cater to their increasingly cost-conscious and wellness-focused workforces, and that need will remain a major talking point in 2025.

Per SHRM’s 2023-2024 State of the Workplace report, the top two concerns for organizations in 2023 were inflation (73%) and employee mental health (66%). Additionally, HR Dive’s 2024 Identity of HR survey discovered that 36% and 22% of HR professionals said that mental health/counseling and educational perks (i.e., student loan repayment and tuition reimbursement) were part of their benefits strategies, respectively.

• How brokers can help: Consider pairing clients with a professional employer organization (PEO) partner to tap into competitive, comprehensive employee benefits plans, likely at a more affordable rate than if they were to purchase them on their own.

Talent acquisition

Hiring remains a top priority for employers. Per the SHRM research mentioned above, 65% of organizations said their top concern in 2023 was labor shortages, and a lack of qualified candidates was the greatest challenge in acquiring talent for 58% of businesses.

Some PEOs provide recruiting solutions that alleviate this burden, as their in-house experts are highly skilled and equipped with the latest recruiting technologies to aid in efficiently identifying high-quality candidates. For instance, tools powered by artificial intelligence (AI) can allow employers to recruit from more diverse and underutilized talent groups, which 62% of organizations said they plan to do.

• How brokers can help: Determine which of your PEO partners offer recruiting services, and the scope and cost associated with them. For instance, ExtensisHR assists with the entire hiring cycle, from crafting job descriptions to consulting on offer letters—and this help is included in its PEO solution at no additional charge.

Workforce engagement and retention

Once the right talent is hired, engaging and retaining them is equally crucial to business leaders. In fact, SHRM’s research found that maintaining employee morale and engagement was the top priority for HR professionals in 2024 (81%). To achieve this, organizations planned on:

• Training and developing people managers, particularly helping them better understand their roles and growing their soft skills (76%)
• Upskilling and reskilling employees (53%)
• Implementing a mentorship program (63%)
• Succession planning (49%)

HR Dive’s survey echoed these findings, with culture listed as HR professionals’ top challenge in 2023. To foster a stronger, more positive culture, HR Dive suggests utilizing employee feedback, surveys, and recognition initiatives.

• How brokers can help: Aligning time-strapped small business clients with an HR outsourcing firm can tremendously impact their culture and, ultimately, their retention rates. For example, some PEOs provide access to learning and development portals and employee engagement platforms. PEOs also have dedicated HR managers to assist with designing mentorship programs, career progression plans, and much more.

A partner that values your business as much as you do

A strong pipeline is a gift—and so is having a trusted PEO partner to source highly sought-after solutions like access to best-in-class employee benefits, recruiting services, and expert HR guidance. Even better is a partner that not just understands, but prioritizes, your needs as a broker.

ExtensisHR does all that and more with its:

• Comprehensive employee benefits packages in which clients can leverage economies of scale, as well as benefits planning and administration services.
• Complimentary full-cycle recruiting services for PEO customers that pair the latest AI tools with a professional human approach.
• Wide range of HR services, including payroll and tax administration and dedicated HR guidance.
• Affordable access to 15Five, a leading employee engagement platform that includes surveys, feedback gathering, weekly check-ins, and more.
• On-demand learning and development portal with immersive training modules to develop clients’ in-house talent and expertise.
• Broker-centric philosophy, designed to help you expand your offerings, differentiate yourself, secure new and long-term clients, earn competitive commissions, and experience a seamless RFI process.

ExtensisHR is thankful for all its current broker partners and grateful for the trust you put in our services. If you want to learn more about how collaborating with ExtensisHR can benefit your book, contact us today.