Key
Concepts in Benefits Consulting
In choosing a Benefits Consultant and
defining a consulting engagement, the smaller employer should consider the
following:
Somewhere
between a specific question and carte blanche . . .
Your consultant should be selling nothing but counsel.
Small plans are different than big plans.
Offer access to the necessary information and personnel.
Somewhere
between a specific question and carte blanche . . . you will find the best
balance of issues to put before your consultant. It is generally a mistake to
focus the attention of your advisor too narrowly. The risk is that you will
receive an answer that is entirely accurate, but fundamentally useless. Give
your advisor the reasons behind your inquiry, and explain the basis of
limitations that you impose upon the engagement. Be aware that better
consultants will still want to know about the role that the particular topic
of consideration will play in your overall benefits package.
- Choose
independent advice
Your consultant should be selling nothing but counsel. Buy your investment
products from people who focus their energy upon investments. Get your
technical advice on benefit plans structures from people who do that for a
living. If a business' principal revenue comes from selling products, then
this is the likely focus of its interest and expertise. The service provider,
on the other hand, will be intent upon providing you with good service.
- Match
the expertise to your needs
Small plans are different than big plans.
Plans should be designed to meet the needs of the sponsoring employer. Smaller
employers tend to face different problems than large ones. It is simply common
sense that the experience and expertise of your advisor should match your
circumstances.
Offer access to the necessary information and personnel. While it may take
a bit more work, you will be better satisfied with the recommendations of your
benefits consultant if you provide an opportunity to explore the available
information, even if its relevance is not fully apparent. If your benefits
advisor is not paying attention to things you haven't thought of, it may be
appropriate to choose another.
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