If you want to finally stop overpaying for benefits you need to try something new to avoid getting more of the same.(Photo: Shutterstock)
Most benefits plans are treated as one-off annual expenses, and the result leaves business owners paying more and more every year for the same benefits. Despite this, many employers are hesitant to try something new, worried that different strategies might somehow leave them worse off than the system that's been taking advantage of them for years on end.
Some of the most intimidating changes can pay off in incredible ways. I invested over $100,000 into improving my own company in 2018, and it was worth every penny. The risks I took are now enabling me to serve my clients better, helping them build benefits plans that can elevate their business and give more to their employees. This growth in my own business wouldn't have been possible if I hadn't been willing to make some big changes, and it's one reason why I push my own clients to invest in their own success by trying something different with their benefits.
Here's why a big change can be your greatest investment when developing your benefits plan:
|Stepping out of the comfort zone
For many clients who have gotten used to status-quo benefits plans, developing something new and innovative with a great advisor is just as uncomfortable as it is exciting. They've gotten used to the same process (and the same increased costs) year after year, and the prospect of trying something new can seem like a huge risk.
If you're on the fence about making the switch to a more innovative benefits plan, ask yourself these questions:
- What's my annual increase? For most business owners, the answer is 5-6 percent every year.
- Is it sustainable? And even if you can afford to pay the increase, are there really no areas of your business where that money could be better spent?
- Am I willing to make a change? If you stick with the same process you've been using every year when you renew, you'll keep spending unnecessary funds on the same sub-optimal benefits services.
Change can be intimidating, especially when it comes to the business you've worked so hard to build up. If you want to finally stop overpaying for benefits, though, you need to try something new to avoid getting more of the same.
|A relationship of trust
A good advisor will understand that you may be hesitant about making big changes to your benefits plan, and they'll do everything they can to earn your trust throughout the whole process. One of the biggest ways that your advisor can ensure you're getting what you paid for from your plan is through a performance guarantee. This ensures that your advisor only gets paid if you save money through their work.
Your advisor will also work closely with you and your employees throughout the benefits process. Unlike a broker, who meets with you just once a year to “negotiate” a renewal, a great advisor will work with your business throughout the year, adapting your plan to your company's changes and growth. They can also meet individually with your employees to help them understand their plan, educating them on how the choices they make can help save them (and you) more money.
|The importance of a good fit
Ultimately, even a great benefits plan won't work if you and your advisor are a poor fit for each other. Just as your advisor has to be willing to build your trust and prove that their services are worth your time and money, you need to believe in what they're doing in order to get the most out of your benefits plan.
Recently, a now-former client of mine decided that they wanted to make the switch back to a traditional broker. They didn't understand the concepts I had available to bring to them, and they wanted to stay in the status quo. A mismatch like this wasn't going to serve either of us in the long term – they weren't willing to accept the changes necessary to help their business grow, and they went with something they were comfortable with instead. For me, this outcome wasn't a failure, but rather the result of a poor client-advisor fit. Business owners have to believe in the tools and strategies their advisor provides them, or even the best benefits plan won't give them the results they want.
|No quick fix
The journey to a better benefits plan isn't as quick and simple as signing off on an annual renewal, but it can be one of the best choices you can make for your growing business. By being willing to exit your comfort zone and trust your advisor, you can help build an amazing working relationship that takes your benefits plan from another annual expense to a strategic tool for your company.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
