Businesses with 5 to 20 employees offer a world of opportunity to you as an employee benefits advisor.
Ontario is booming with businesses of this size–there are nearly endless prospects. These businesses have hands-on owners, always on the lookout for ways to balance profitability with their team’s needs as they grow their business.
As a benefits advisor, you have the chance to help these businesses thrive by creating the right benefits package that provides value-added service at a profit.
Here’s how.
Client’s Needs Analysis
The first step is knowing where your client is headed. The majority of businesses are in a growth phase, but every one of them is moving in a different direction—whether it’s expanding, merging, preparing for an eventual sale, or any number of other possibilities.
To understand how you can help, you need to ask future-based questions. Dan Sullivan of The Strategic Coach has a great one:
“If we were meeting three years from now, what would have to have happened for you to say those were the best three years of your life?”
This kind of question not only helps you see the bigger picture, but it gets the client thinking about how their benefits plan can support their objectives. It also shows that you’re not just selling insurance—you’re invested in helping them reach their goals.
If a client isn’t engaged in this conversation, it’s a sign they might not be the right fit for you, and that’s okay! Focus your energy on the ones who are ready to take their next steps.
Understanding and Managing Risks
Benefits plans are more than just policies—they’re promises that employers make to their employees. And those promises can come in two forms: big, rare risks or small, frequent ones.
High-Cost, Low-Frequency Promises
These are the big-ticket items that (hopefully) won’t happen often, but still need to be covered.
Think about group life insurance, long-term disability, high-cost specialty drugs, or critical illness coverage. These are the kinds of promises that can have a huge financial impact if they happen, so insurance is essential.
Low-Cost, High-Frequency Promises
On the flip side, you’ve got the smaller, everyday expenses—like paramedical services, vision, dental, or low-cost maintenance drugs. These are predictable and happen regularly, so they don’t require insurance, but they do need to be part of the company’s budget.
It’s a lot like owning a car: you need insurance for major accidents, but things like oil changes and gas are regular expenses that you plan for.
Helping your clients manage these two types of promises—what to insure and what to budget for—sets you up as a valuable resource and ensures they’re covered in every scenario.
Customizing the Benefit Plan
When it comes to benefits, one size does not fit all—especially in this market. Let your clients design a plan that fits their needs and budget. Customized solutions make your clients happy and also build trust and long-term relationships.
Remember, business owners don’t like to hear that something isn’t possible. Work with them to help them craft the unique promise they’d like to make to their employees.
Help your clients get to a “yes” or “no” quickly by focusing the conversation on meaningful topics like budget and key needs. This helps both of you avoid the dreaded “maybe” that drags out the process and destroys profitability.
Keeping it simple means a faster, smoother sales cycle for everyone.
Reporting and Taxation Considerations
Monthly reporting is a win-win for you and your clients. It helps eliminate surprises, keeps the benefits plan on track, and makes renewals much smoother. A blindsided client is an unhappy client—transparency and regular reporting is the best way to avoid that.
Plus, don’t forget the tax benefits—employee benefits are a tax-deductible business expense, which is a nice bonus for any company. Be sure to remind your clients of that little perk when discussing their plan, and remember, 100% executive plans work.
Grow with Your Clients
The beauty of working with businesses that have 5 to 20 employees is that you’re potentially getting in on the ground floor of something big. These companies are growing, and their needs will grow along with them. If you establish yourself as their trusted advisor early on, you’ll grow with them, potentially helping them navigate their journey from 5 employees to 50, or even 500.
Always approach their goals with positivity—never tell a business owner they can’t do something. Instead, show them how they can achieve their vision while keeping their employees protected. The 5-20 employee market is rife with opportunity, and knowing how to meet the unique needs of these businesses will set you apart as a benefits advisor.
Looking for expert resources and support to help your clients build the right benefits plan? Contact The Benefits Trust today and discover how we can help you unlock profit potential for the businesses you serve!
