4 Ways a PEO Helps Benefit & Insurance Brokers Win New Clients!
Updated: Feb 10, 2022
At this point, there are a ton of publications and data that supports the value that professional employer organization provide to their small and mid-sized business clients. Such as some of the following benefits:
Infographic provided by: NAPEO
With the regulatory environment continuously on the rise, PEOs are becoming a go-to solution for many small and medium sized employers who struggle to keep up with the rising cost of employee related expenses, healthcare costs, new employee benefit trends, and the ever changing regulatory landscape, and so much more.
After all, the right PEO partnership doesn’t just benefit companies, it also benefits their insurance partners by making their clients more profitable and sticky. The right partnership can also significantly improve the insurance and benefit brokers ability to differentiate in the marketplace. This is especially relevant when you consider that you have access to the same markets, carriers, and pricing as the brokerage down the street. This is exactly why many brokers are getting out of the box ideas from other sources and PEO should be one of those options. Give yourself the upper-hand, tip the scales in your direction, and add some additional value to your client/prospect interactions.
Now, here are a few ways PEOs can help you grow your book of business!
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1) A PEO HELPS BROKERS WIN NEW BUSINESS
As the complexity of doing business continues to rise, so does the need, and desire to outsource HR to professionals who can manage it more effectively. Today, small business owners have more options available to them than ever before. Not to mention that large brokerages routinely update their packages and offerings to stand out in the market and keep up with the latest trends.
As companies seek to lower insurance costs, this can also lead to otherwise loyal clients choosing to evaluate their alternatives. Simply adding a PEO to your list of solutions can help any benefit or insurance broker keep up with, and/or exceed, the competitions attempts.
Brokers should also be aware of PEOs that typically market and sell direct to prospects, therefore bypassing brokers all-together and often taking existing clients away. In many cases, these PEO’s will already have an existing business relationship with your clients through other related entities or functions that provide services to your clients. Such as banking, accounting, or payroll services.
When you proactively partner with a PEO that works exclusively with brokers, such as The Mission HR, you can better compete against other PEOs who are targeting your clients on a daily basis.
When you work with a PEO partner, they will typically equip a broker with the ability to provide both prospects and clients with an all-in-one customized HR solution that enables them to have the same quality of technology, human resources, benefits, and risk management as most Fortune 500 companies.
These benefits would include access to 401(k)s, voluntary benefits, complimentary benefits, access to HR and compliance experts, and not to mention traditional HR services can all be delivered to a small business client through a PEO partnership.
2) SIMPLY OFFERING A PEO SOLUTION HELPS BROKERS DIFFERENTIATE THEMSELVES
Even today, thousands of benefit and insurance brokers still do not offer PEO as an option. This is likely for a few different reasons, but nevertheless it presents a huge opportunity for brokers to separate themselves from the rest and stand out in an extremely competitive market.
Earlier we touched on just how big of a challenge benefits management and healthcare can be for small and mid-sized employers, so being able to tell a client you can provide them with competitively priced, high-quality benefit solutions can help protect your book and bring on new clients.
Competitive advantages are critical in any business or market, and for a broker, having the option to recommend a PEO solution to prospects can mean the difference between gaining or losing a potential new customer.
3) A PEO WILL HELP BROKERS PROTECT THEIR BOOK OF BUSINESS
One of the most valuable assets a broker has is their current clients that make up their book of business. Although the addition of new clients is critically important, the key to long-term success is client retention. However, this is an especially difficult task when you consider that the competition is greater than it has ever been before. Now couple that with trying to manage client expectations, and you quickly see why this is no easy task.
So, not only do you have to worry about losing clients to other brokerages, but national and regional payroll and PEOs that sell direct to clients could mean critical losses for your book of business.
Alternatively, when you partner with a PEO that only works through brokers, that means you can worry less about losing that business to providers that are attempting to direct sell these services to your clients, as well as other brokerages that can offer more resources to their clients.
4) BROKERS WHO PARTNER WITH A PEO ACHIEVE MORE CONSISTENT SHORT-TERM AND LONG-TERM SUCCESS
One of the primary reasons why the HR outsourcing industry and specifically PEO has seen so much growth, is that businesses can offload all of their HR headaches and save money at the same time. Often times, executives and business owners admit that the worst part of running a business is having to deal with government compliance, the rising cost of insurance premiums, as well as employee related issues. This is where a PEO can mitigate those year over year impacts due to their economies, and industry expertise.
While some PEOs sell directly to small employers, eliminating the need for brokers, others (like Mission) have taken a different approach. Instead, we have chosen to partner exclusively with brokers to provide our solutions to their clients.
If you are a benefits or insurance broker that is looking to win new business, be more competitive, differentiate yourself, and ultimately protect your book of business, then you stand to gain significantly from considering PEO as a new business solution.
This is especially true for brokers who want to offer local service and expertise, something that larger, national organizations cannot provide. As we move through 2019, brokers who partner with a PEO can set themselves up for short-term and long-term success.
For a first-class HR experience that will help you find the best solution for your needs, let's schedule some time to talk today.
About The Mission
The Mission is a leading partner in the PEO, HR, payroll, and benefits outsourcing marketplace. We provide a valuable service for small and medium-sized organizations and government contractors, serving as a trusted partner in integrated human resource (HR) compliance, risk management, employee benefits, employment practices liability insurance (EPLI), and payroll processing.