The document discusses the shifting roles of brokers and financial advisors. It summarizes a survey of HR and payroll professionals that identifies opportunities for brokers/advisors to improve customer loyalty. The survey found that while brokers are meeting expectations regarding benefits packages, there are opportunities to improve services rated as highly important but with low satisfaction. Common challenges for clients include managing healthcare costs, regulatory compliance, and educating employees. The survey also explored reasons clients may change brokers/advisors, such as decreased responsiveness or offering of fewer options.

1. 2016 BENEFIT BROKER
& FINANCIAL ADVISOR
INSIGHT REPORT

2. The role of brokers & advisors is
shifting quickly and dramatically.

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. Client needs are also shifting.

5. Clients just want a provider;
clients expect a partner.

6. A partner who helps clients stay compliant.

7. A partner who helps clients stay compliant.
A partner who helps clients stay informed.

8. A partner who helps clients stay compliant.
A partner who helps clients stay informed.
A partner who helps clients stay proactive.

9. How can brokers and advisors
transform into a partner?

10. Paylocity’s newest survey examines what HR &
payroll professionals truly want from their broker
& advisor.

11. ONE
Discover new opportunities to turn
customer satisfaction into customer loyalty.

12. Customer loyalty is a two-way street.

13. When organizations focus more on
addressing customer needs and less
on the intended business result…

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. How can brokers & advisors create
this type of customer loyalty?

16. 1. Learn which services are most important to
clients.

17. 1. Learn which services are most important to
clients.
2. Note clients’ satisfaction with each service.

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. Identifying the Gap for Benefit Brokers: Importance v. Satisfaction

20. Identifying the Gap for Benefit Brokers: Importance v. Satisfaction
Rated most
important
service &
highest in
satisfaction

21. Identifying the Gap for Benefit Brokers: Importance v. Satisfaction
Large gap exists
between
importance &
satisfaction

22. Identifying the Gap for Benefit Brokers: What Does it All Mean?
• Brokers are meeting client expectations &
needs in regards to benefit packages.

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. Identifying the Gap for Financial Advisors: Importance v. Satisfaction

25. Identifying the Gap for Financial Advisors: Importance v. Satisfaction
Rated most
important
service, but not
highest in
satisfaction

26. Identifying the Gap for Financial Advisors: Importance v. Satisfaction
Large gap exists
between
importance &
satisfaction

27. Identifying the Gap for Financial Advisors: Importance v. Satisfaction
Rated higher in
satisfaction
than in
importance

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. 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. TWO
Learn about clients’ biggest concerns.

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. With the onset of the ACA, managing healthcare
costs is more critical than ever.

33. HR and payroll professionals are taking a
number of steps to control these costs.

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. 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. 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. 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. THREE
Explore reasons that would prompt clients to
change brokers and/or advisors.

39. Reasons a Client Would Leave His or Her Benefit Broker:

40. A decrease in service could include:
 Responding slowly to questions

41. A decrease in service could include:
 Responding slowly to questions
 Having an inadequate enrollment process

42. A decrease in service could include:
 Responding slowly to questions
 Having an inadequate enrollment process
 Offering fewer health options

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. 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. Reasons a Client Would Leave His or Her Financial Advisor:

46. A decrease in service could include:
 Responding slowly to questions

47. A decrease in service could include:
 Responding slowly to questions
 Having an inadequate enrollment process

48. A decrease in service could include:
 Responding slowly to questions
 Having an inadequate enrollment process
 Providing minimal insight on regulations

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. 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. 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. About the Survey