Why Most Employers Aren't Getting the Right Benefits Advice
Let's talk about something that's costing you money right now. Employee benefits sit firmly in your top three budget items, yet most of you are getting advice that's... well, not great. And it's hurting both your bottom line and your ability to keep good people.
What's Really Going On in Benefits Advising
We've spent years watching this industry, and we've got to be honest with you. The benefits world intentionally makes things confusing. It's not your imagination. For companies with 50-2,000 employees, we see the same three problems over and over:
1. The Famous "Easy Button" Approach
You know the drill. Your advisor shows up with a spreadsheet. "Here's Blue Cross, here's Aetna, here's Cigna. Which do you want?"
Why do they do this? It's usually one of three things:
They don't actually know better solutions exist
They're taking the lazy route (harsh but true)
They don't want to put in the work to create something just for you
You wouldn't accept this cookie-cutter approach from other vendors. Why accept it for something this expensive?
2. Where Their Money Really Comes From
Want to make your advisor uncomfortable?
Ask this question: "How much are you earning in overrides and bonuses beyond your commissions?"
Here's what they won't volunteer: Many brokers push specific carriers because they make 2-3 times more money than with alternatives that might be better for you.
When they don't share this information up front, they're creating a liability for you. As an employer, you have a fiduciary duty to know this stuff.
3. They're Not In It For The Long Haul
Too many advisors see you as this year's commission check, not a long-term partner. They never really invest in understanding:
What makes your company tick
Who your employees actually are
Where your business is headed
What you can really afford
Without this foundation, how can they possibly build something that works for you?
What This Costs You Every Day
For 20+ years now, insurance premiums have risen faster than wages. Yet most employers keep doing the same thing and hoping for different results.
Poor advice isn't just annoying - it's expensive:
You're paying too much (obviously)
Your employees are less satisfied and engaged
The good candidates pick other companies
You deal with the headache of changing plans constantly
You miss out on funding approaches that could save serious money
Red Flags Your Advisor Isn't Cutting It
Time for some tough love.
Your benefits advisor is probably falling short if:
They've never mentioned alternatives to fully-insured plans
Their presentations only feature the big-name carriers
They get squirmy when you ask about their compensation
They haven't suggested surveying your employees about their needs
You only hear from them at renewal time
They can't clearly explain how carrier contracts actually work
Their big win is negotiating a smaller increase instead of tackling why costs rise in the first place
What Good Advice Actually Looks Like
When someone's really working for you, you'll see:
They check in year-round, not just at renewal
They put all their compensation cards on the table
They bring data to back up their recommendations
They build something specific to your workforce
They want to hear directly from your employees
They design plans where you can swap out underperforming pieces without blowing up the whole thing
They recognize that your 25-year-old employees want different things than your 55-year-old employees
What To Do About All This
You deserve better.
Start here:
Call your advisor today and ask about their full compensation structure
Ask specifically what alternative funding models might work for you
Find out what your employees actually think about their benefits
Question why you're with the same carriers you've had for years
Talk to advisors willing to put their money where their mouth is - ones who'll risk their fees based on results
Bottom Line
The right benefits approach makes a huge difference to your company's health and your team's happiness. Don't settle for the cookie-cutter stuff or accept those annual increases as "just how it is."
You have better options, you just need someone who isn't lazy, greedy, or clueless about the market. The right partner will roll up their sleeves, get to know what makes your company tick, and build something that actually works for you long-term.