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PARTNERING WITH BENEFITS BROKERS IS GOOD FOR PEOS AND GOOD FOR BROKERS
Benefits broker partnerships help you access new segments of the market and gain efficiencies while helping brokers bring in additional revenue sources.
PEOs provide a solid HR foundation for businesses of all sizes. PEOs act as pillars of support, empowering companies to navigate the complexities of workforce management and HR administration. While PEO leaders steer organizations toward sustained growth and success, opportunities like broker partnerships provide compelling advantages.
Benefits broker partnerships can offer PEOs a unique vantage point to harness both growth opportunities and strategic collaboration, wherein both parties can leverage their specialized skill sets to provide comprehensive, value-added solutions to business clients. Understanding which broker partnerships will help you and your clients most is the first step when forming a partnership.
PEO brokers, property and casualty agents, and health agents are the three types of brokers we will focus on. We will shed light on how PEO leaders can strategically align their resources with brokers to not only expand their market presence but also enhance client support.
UNDERSTANDING THE MAIN BROKER PARTNER PLAYERS
Brokers bring in-depth market insights and established networks to open doors to a broader client base and uncover untapped markets which fuels PEO goals. Before you create a partnership strategy, you should know the three types of brokers and the employee benefits they focus on.
PEO BROKERS: PEO brokers are independent brokers that market to several PEOs. They work directly with employers to find the right PEO for a particular business, so they have a strong hold on all the different options in the industry and what they can offer each employer.
PROPERTY AND CASUALTY AGENTS: These brokers focus on workers’ compensation and similar lines of insurance, including homeowners or even auto insurance. They can work with more than one insurance company or just represent one.
HEALTH AGENTS: Health agents are concerned with medical and ancillary plans. Again, they can work with one insurance provider or multiple.
PEO leaders should consider how each of these brokers can benefit their organizations and their clients. They all come with areas of expertise and client segments to tap into.
BENEFITS OF BROKER PARTNERSHIPS
PEOs are wise to partner with brokers for a handful of reasons, particularly to gain more clients and strengthen the support provided to clients. Here are a few additional advantages of partnerships.
1. Enhanced efficiency. Broker partnerships can streamline resource allocation, allowing PEOs to focus more on their core competencies. By leveraging brokers’ capabilities, PEOs can efficiently tap into new markets and client segments without the need for extensive resource investments. This streamlined approach translates into cost savings, as the collaborative effort enables the PEO to scale its operations and extend its reach.
2. Stronger client relationships. Brokers serve as trusted intermediaries between PEOs and clients, facilitating seamless communication and fostering strong, enduring relationships. The broker’s role in navigating the intricacies of concerns like insurance ensures that clients receive tailored solutions aligned with their unique requirements. What’s more, PEOs can provide bundled HR services outside of insurance, so employer clients get everything from one place. PEOs can make a big impact on broker-client relationships.
3. Profitable commission streams. Collaborating with brokers enables PEOs to tap into an extended network of potential clients. Brokers possess an intricate understanding of local markets, industries, and client needs. This facilitates precise targeting, enhancing the PEO’s visibility and relevance within diverse sectors. By capitalizing on brokers’ established relationships, PEOs can secure a steady influx of qualified leads, enabling efficient client acquisition and accelerated growth. Brokers can also take advantage of gaining additional revenue sources through PEO partnerships.
While the benefits of broker partnerships are plenty, many PEO leaders and brokers are still weary of partnering with each other due to miseducation and wrongly perceiving the other as a threat. Let’s address how both parties actually work in conjunction with each other and list strategies for education and trust-building.
OVERCOMING PARTNERSHIP CHALLENGES AND BUILDING TRUST
A key concern with any partnership is building trust. Without it, benefits broker partnerships may not be beneficial or long-lasting.
The first step is overcoming common challenges, particularly those related to industry misconceptions. Some brokers feel that the existence of PEOs in the market means that they’ll take away clients since PEOs provide comprehensive HR solutions. However, addressing this head-on and recognizing the mutual benefits a partnership can bring will help your organization overcome any tense feelings of competition.
A few strategies that will help with education on both sides and building trust include:
Keep communication open: One of the most damaging parts of any partnership is a failure to communicate. Resentment and confusion can build quickly. Emphasize communication and transparency. Make it clear how PEOs can benefit the broker and their clients.
Respect the other side: Brokers have particular areas they’re experts in, like workers’ comp or health insurance. A partnership built on trust requires both parties to respect and account for the expertise of the other. Both sides need to be open to learning.
The benefits of working closely with brokers are argument enough for establishing strong, ongoing relationships with the three types. Consider what you want out of the partnership and how you can deliver the biggest impact to their clients.
Marketing to brokers will look a little different for each type and is based on your partnership goals. For example, when you’re looking to partner with PEO brokers, you want to emphasize your unique approach to HR solutions and what you provide that other PEOs don’t. Focus on what sets you apart.
For property and casualty agents and health agents, you’ll emphasize the resources you provide related to those areas and how broker clients can benefit from those offerings in addition to bundled HR services. Highlight that PEOs are one-stop shops so employers can get what they need from one outside organization.
Throughout the process, clear communication is key. Show your track record of client success and highlight your industry expertise. It also helps to have a strong online presence with a well-designed website, thought leadership content, and professional memberships. Focus on how you educate your audiences to keep up with industry trends and break down misconceptions and myths.
WHY PARTNERSHIPS MATTER FOR PEOS
The alliance between PEOs and brokers can empower PEOs to amplify their market presence, diversify service offerings, access valuable insights, optimize resource utilization, and cultivate enduring client relationships.
Through collaboration, the PEO industry can only strengthen and continue to grow. Take the time to evaluate how you can use these relationships to meet the goals of your PEO and your employer clients.
HEATHER KEEFER SAULSBURY
Executive Vice President
StaffLink Outsourcing, a PrestigePEO Company
Sunrise, FL