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2016 Benefit Broker & Financial Advisor Insight Report

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The role of benefit brokers and financial advisors is shifting quickly and dramatically. Benefit brokers are competing regularly with companies like Zenefits and Gusto for business, providing more consultations as a result of the Affordable Care Act (ACA), and facing the demands of a well-educated, tech-savvy clientele¹. Similarly, financial advisors are enduring the side effects of a sluggish U.S. economy, preparing for the inevitable change in workforce demographics, and contending with digital advisory services². It is imperative both benefit brokers and financial advisors reject complacency and embrace innovation in these evolving times.

In addition to external factors, client needs are also shifting. Clients don’t just want a provider; they expect a partner to help them stay compliant, informed, and effective. What’s more, clients exhibit heightened loyalty to someone they consider a partner versus a provider. However, people and service are not enough to differentiate one broker or advisor from the next. Benefit brokers and financial advisors must be aware of emerging trends, as well as new approaches, tools, and technologies in order to create business connections and drive growth.

Paylocity’s 2016 Benefit Broker and Financial Advisor Insight Report offers a detailed look into the changing demands of HR and payroll professionals. With insight from nearly 900 respondents nationwide, this report uncovers opportunities, addresses clients’ concerns, and explores upcoming trends.

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2016 Benefit Broker & Financial Advisor Insight Report

  1. 1. 2016 BENEFIT BROKER & FINANCIAL ADVISOR INSIGHT REPORT
  2. 2. The role of brokers & advisors is shifting quickly and dramatically.
  3. 3. Financial AdvisorBenefit Broker Provide more consultations as a result of the ACA Compete regularly with companies like Zenefits & Gusto Face the demands of a well-educated, tech- savvy clientele Endure the side effects of a sluggish U.S. economy Prepare for the change in workforce demographics Contend with digital advisory firms The Anatomy of the Broker’s & Advisor’s New Role
  4. 4. Client needs are also shifting.
  5. 5. Clients just want a provider; clients expect a partner.
  6. 6. A partner who helps clients stay compliant.
  7. 7. A partner who helps clients stay compliant. A partner who helps clients stay informed.
  8. 8. A partner who helps clients stay compliant. A partner who helps clients stay informed. A partner who helps clients stay proactive.
  9. 9. How can brokers and advisors transform into a partner?
  10. 10. Paylocity’s newest survey examines what HR & payroll professionals truly want from their broker & advisor.
  11. 11. ONE Discover new opportunities to turn customer satisfaction into customer loyalty.
  12. 12. Customer loyalty is a two-way street.
  13. 13. When organizations focus more on addressing customer needs and less on the intended business result…
  14. 14. When organizations focus more on addressing customer needs and less on the intended business result… …customers are more likely to spend money, remain with organizations longer, and refer friends and family.
  15. 15. How can brokers & advisors create this type of customer loyalty?
  16. 16. 1. Learn which services are most important to clients.
  17. 17. 1. Learn which services are most important to clients. 2. Note clients’ satisfaction with each service.
  18. 18. 1. Learn which services are most important to clients. 2. Note clients’ satisfaction with each service. 3. Explore any gaps that exist between importance and satisfaction.
  19. 19. Identifying the Gap for Benefit Brokers: Importance v. Satisfaction
  20. 20. Identifying the Gap for Benefit Brokers: Importance v. Satisfaction Rated most important service & highest in satisfaction
  21. 21. Identifying the Gap for Benefit Brokers: Importance v. Satisfaction Large gap exists between importance & satisfaction
  22. 22. Identifying the Gap for Benefit Brokers: What Does it All Mean? • Brokers are meeting client expectations & needs in regards to benefit packages.
  23. 23. Identifying the Gap for Benefit Brokers: What Does it All Mean? • Brokers are meeting client expectations & needs in regards to benefit packages. • There are opportunities to improve on services rated high in importance & low in satisfaction.
  24. 24. Identifying the Gap for Financial Advisors: Importance v. Satisfaction
  25. 25. Identifying the Gap for Financial Advisors: Importance v. Satisfaction Rated most important service, but not highest in satisfaction
  26. 26. Identifying the Gap for Financial Advisors: Importance v. Satisfaction Large gap exists between importance & satisfaction
  27. 27. Identifying the Gap for Financial Advisors: Importance v. Satisfaction Rated higher in satisfaction than in importance
  28. 28. Identifying the Gap for Financial Advisors: What Does it All Mean? • There are opportunities to improve on services rated high in importance & low in satisfaction.
  29. 29. Identifying the Gap for Financial Advisors: What Does it All Mean? • There are opportunities to improve on services rated high in importance & low in satisfaction. • Services rated high in satisfaction and low in importance suggest advisors are generally doing an effective job.
  30. 30. TWO Learn about clients’ biggest concerns.
  31. 31. The Most Concerning Employee Benefit Challenges EMPLOYEE BENEFIT CHALLENGE PERCENTAGE 1 Managing healthcare costs 89.62% 2 Maintaining compliance & staying current on changing legislation 88.41% 3 Educating employees on benefit enrollment 73.70% 4 Using benefits to attract & retain employees 70.76% 5 Helping employees become better consumers of healthcare 67.47% 6 Managing prescription drug costs 65.92% 7 Educating employees on health and wellness 57.09% 8 Developing wellness programs 42.04%
  32. 32. With the onset of the ACA, managing healthcare costs is more critical than ever.
  33. 33. HR and payroll professionals are taking a number of steps to control these costs.
  34. 34. Steps to Control Costs Adding a high-deductible plan¹ ¹ Miller, S. (2015, May 21). “2016 Will be Costly Year for ACA Compliance, Employers Say.” Retrieved December 28, 2015.
  35. 35. Steps to Control Costs Offering a health savings account¹ ¹ Miller, S. (2015, May 21). “2016 Will be Costly Year for ACA Compliance, Employers Say.” Retrieved December 28, 2015. Adding a high-deductible plan¹
  36. 36. Steps to Control Costs Consulting with a benefit broker² Offering a health savings account¹ ¹ Miller, S. (2015, May 21). “2016 Will be Costly Year for ACA Compliance, Employers Say.” Retrieved December 28, 2015. 2 Kuehner-Herbert K. (2014, September 10). “ACA Forcing Changes for Brokers.” Retrieved December 28, 2015. Adding a high-deductible plan¹
  37. 37. The Most Concerning Retirement Plan Challenges RETIREMENT PLAN CHALLENGE PERCENTAGE 1 Keeping up to date on regulatory changes 70.53% 2 Educating employees on retirement plans 63.95% 3 Offering competitive retirement plan benefits 60.53% 4 Increasing plan participation 57.11% 5 Structuring your company’s matching contribution 38.42% 6 Setting up auto-enrollment 31.06% 7 Shifting workforce demographics 25.00% 8 Excluding part-time employees 14.48%
  38. 38. THREE Explore reasons that would prompt clients to change brokers and/or advisors.
  39. 39. Reasons a Client Would Leave His or Her Benefit Broker:
  40. 40. A decrease in service could include:  Responding slowly to questions
  41. 41. A decrease in service could include:  Responding slowly to questions  Having an inadequate enrollment process
  42. 42. A decrease in service could include:  Responding slowly to questions  Having an inadequate enrollment process  Offering fewer health options
  43. 43. A decrease in service could include:  Responding slowly to questions  Having an inadequate enrollment process  Offering fewer health options  Communicating infrequently with employees
  44. 44. A decrease in service could include:  Responding slowly to questions  Having an inadequate enrollment process  Offering fewer health options  Communicating infrequently with employees  Providing minimal support & resources
  45. 45. Reasons a Client Would Leave His or Her Financial Advisor:
  46. 46. A decrease in service could include:  Responding slowly to questions
  47. 47. A decrease in service could include:  Responding slowly to questions  Having an inadequate enrollment process
  48. 48. A decrease in service could include:  Responding slowly to questions  Having an inadequate enrollment process  Providing minimal insight on regulations
  49. 49. A decrease in service could include:  Responding slowly to questions  Having an inadequate enrollment process  Providing minimal insight on regulations  Giving bad financial advice to the company
  50. 50. A decrease in service could include:  Responding slowly to questions  Having an inadequate enrollment process  Providing minimal insight on regulations  Communicating infrequently with employees  Offering simplified technology
  51. 51. About Paylocity Paylocity (NASDAQ: PCTY) develops industry-leading, cloud-based payroll and human capital management software solutions for medium-sized organizations. Our comprehensive and easy-to- use solutions enable clients to manage workforces more effectively. Paylocity’s intuitive, highly configurable solution unifies payroll and HCM applications, such as time and labor tracking, benefits, and talent management. Our solutions help drive strategic human capital decision-making and improve employee engagement by enhancing the human resources, payroll, and finance capabilities of our clients. Learn more about Paylocity by visiting our website, www.paylocity.com. To download the complete survey, click here.
  52. 52. About the Survey

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