This is the Employee Benefits Adviser category of the Broad REach Benefits blog. At Broad Reach Benefits, we focus on employers that have between 30 and 500 benefit eligible employees. We’re employee benefit specialists, not a big box brokerage firm or payroll company with a sales force peddling policies.
We’ve successfully identified two types of brokers in the benefits industry and created a short video to explain things a little further. Once the video comes to an end you will be able to easily determine if your company is with the majority, or the minority. Making this determination could be exactly what you need to save money, and gain the extra support your HR Department has been hoping for.
So, who are you working with? […]
The Human Resource and Benefits departments of law firms face unique challenges when dealing with attorneys and staff, personnel issues, and hiring and retaining talent. Because Broad Reach Benefits works closely with law firms of all sizes, we are familiar with the issues you face every day. Some of the expected challenges HR and Benefits departments can keep in mind when working at a law firm include:
While attorneys must supervise the legal work conducted by paralegals and assistants, there is often a reporting structure within the legal support staff, as well as the need to report to HR for performance, administrative, and personnel issues. With so many levels and layers in the organization, consistency is key. It is important to have a handbook that everyone can reference and rely on and an engaged HR department that maintains professionalism and proactively avoids conflict. […]
Controlling rising employee benefits costs requires an understanding of the drivers within your employee benefit programs that are controllable and then taking corrective action. If you are an employer with over one hundred benefit eligible employees then one of the drivers which plays a part is the way your employee benefits broker is compensated- Commissions vs. Fees.
As employee benefit advisors we know the first item to look at to assist in lowering the trajectory of future cost increases is to examine how the broker or advisor is being compensated. No, we are not talking about a race to the bottom to see which brokerage firm can provide the cheapest annual cost. We’re talking about how employers compensate an employee benefits broker. The typical arrangement is on commission. The brokerage firm receives a percentage of the medical premiums as compensation for their services. The employer pays their premium to the insurance carrier or Third Party Administrator (TPA) and the carrier or TPA passes the commission on to the broker. While the commission may be a fixed percentage from year to year, left unchecked the actual dollar amount your brokerage firm is receiving each year is increasing, mirroring your medical premium increases. This compensation is disclosed on a Schedule A and then in your annual 5500 filing. […]