An increasing number of small business owners are realizing the importance of providing employee benefits to attract and retain talent.
So much so, a 2023 Mercer report found that 53% of small employers plan to offer employees improved benefits packages to increase retention and recruitment.
There are a variety of different benefits plans available on the market, but busy startup owners like you may not have enough time to go through each benefits package individually, nor would you have time to negotiate with different insurance providers.
That’s where employee benefits brokers come in.
Benefits brokers can help you get a better deal by leveraging their relationship with carriers, which is great because the cost of healthcare and health insurance has been on the rise. The cost of out-of-pocket spending increased by more than 10% in 2021, and the cost of health insurance went up by nearly 30% in 2022.
With the help of a benefits broker, you are more likely to get maximum cover options that you might not have heard about. Brokers can also simplify enrollment and help your business comply with legal requirements related to employee benefit programs.
In this article, you’ll learn what an employee benefits broker is, what they do, and if hiring one is right for your small business.
Final Thoughts: What Is an Employee Benefits Broker, and Do You Need One?
An employee benefits broker is a licensed professional who advises businesses on matters related to employee benefits. Because they have the expertise, organizations hire brokers to help them choose from multiple insurance plans or customize a plan that fits employees’ needs.
Employee benefits brokers help businesses navigate the intricacies of signing up with an insurance carrier.
According to the U.S. Bureau of Labor Statistics, benefits for employees made up more than 30% of total employer compensation costs. It’s critical, therefore, for small businesses to optimize the value of their benefits plan relative to cost.
Brokers act as a go-between, bridging the gap between your organization and the healthcare industry. They find the right benefits plan for each company’s unique needs and negotiate deals for additional savings.
The best employee benefits brokers can also help in the following ways:
Choosing an employee benefits broker is no small feat. They’re responsible for helping your business select the best insurance policies and benefits for your employees. Choose the wrong broker, and you might end up overspending on a mediocre health plan.
When vetting a benefits broker, consider the following factors:
Here are other things to keep in mind when selecting a broker:
The goal is finding someone that offers more than expertise — a partnership. But when it comes to partnership, there’s a better alternative.
Choosing the right employee benefits broker can be a hassle, and there’s no guarantee you’ll find a reliable partner. If you find interviewing and vetting brokers time-consuming, consider an alternative service.
Pebble can offer a quicker, cheaper, and more efficient sign-up process, without unnecessary fees.
Pebble offers AI-optimized benefits strategies that allow small companies to be more generous with their benefits than off-the-shelf plans might allow. These, in turn, attract top-quality talent to your company.
Moreover, Pebble provides access to fertility and mental health benefits, which nobody else in the industry can offer. Pebble also handles the administrative work for you, including payroll deductions, paperwork, and even employee onboarding.
Plus, unlike a traditional broker, Pebble works more closely with your team, talking directly to each employee to answer questions and work through any issues.
Partnering with Pebble ensures a personalized experience for your business’s health insurance journey. By working closely alongside your business, Pebble will help find the best deals for your employees while also assisting you in creating a benefits package that fits your company’s budget.
Employee benefits brokers help organizations find the right benefits packages for their budgets and employees’ needs. However, the process of vetting a broker can be a hassle and doesn’t guarantee you’ll find a reliable partner.
Instead, consider an alternative option like Pebble.
Pebble uses AI to find the best benefits programs for your organization and takes care of all the administrative overhead involved.
Contact Pebble today to find the right benefits plan for your small business.