As HR has become more challenging for small and medium-sized businesses (SMBs), the role of brokers has evolved.
Many business owners now view their benefit broker as a trusted advisor who can help them with various aspects of HR – such as by recommending an outsourcing solution like a PEO.
While many benefits and insurance brokers know that a PEO partnership can be helpful
, there remains some confusion amongst financial advisors who don’t see how this solution can help their business or clients.
However, financial professionals can gain the same business advantages as their insurance counterparts by working with a professional employer organization
Here are 3 advantages financial advisors can gain from exploring PEO solutions.
1) Provide Clients with a Full HR Solution (Without Taking on More Work)
Financial advisors are able to provide clients with access to 401(k)s and other savings plans that are extremely important to employees. However, they often cannot provide additional employee benefits or HR services, forcing clients to look elsewhere for these offerings.
By partnering with a PEO
, financial professionals are able to offer a full-service HR solution to their clients in addition to savings plans. Doing so makes these brokers even more valuable to current clients, and makes it that much easier to bring on new customers.
While adding a full-service HR solution would mean a lot additional work for a financial advisor on their own, this isn’t the case with a PEO. In this type of partnership, the PEO would handle all HR management and administrative services – meaning the advisor gets to add valuable solutions to clients without taking on any more work.
In addition to this comes another valuable benefit from exploring a PEO partnership…
2) Earn Residual (and Additional) Revenue
One of the benefits of working with a broker-only PEO is that instead of losing income and clients, brokers earn residual revenue.
But for financial professionals who use a PEO for the first time, not only do you get additional income in the form of commission, but you also earn more by being able to offer a full HR service to clients.
Often, financial advisors aren’t aware that this type of PEO model exists, which is one reason why some are quick to dismiss a PEO partnership. But by doing so, financial brokers miss out on the potential to earn a lot more.
They also fail to gain an even more important benefit from working with a PEO…
3) Protect and Grow the Book of Business
A broker’s book of business is perhaps the most important aspect of their company. And with competition from other brokers and direct-selling PEOs at an all-time high, it’s never been more difficult to protect.
However, just like how PEOs help benefits and insurance brokers
, they can do the same for a financial advisor’s book of business.
By being able to offer more solutions and options, financial professionals increase their chances of attracting and ultimately gaining new clients. Additionally, having these solutions available decrease the likelihood of a client jumping to a new broker or direct-selling PEO who are able to offer a full HR solution.
Gaining resources that can help grow and protect the book of business sets financial advisors up for continued success.
Truly Be a Trusted Advisor by Being Able to Recommend and Offer a Full HR Experience to Clients
Financial professionals are seen by their clients as trusted advisors who have their clients best financial interests in mind. With HR costs continually increasing
and administrative tasks more complex than ever before, being able to offer clients a wide-range of HR solutions can further strengthen the relationship between a financial advisor and their client.
Exploring a PEO partnership can provide financial brokers with a unique competitive advantage that not only helps clients, but also grows and protects the book of business.
Don’t believe the myth
that a PEO partnership can only help benefit and insurance brokers!
Want to learn more about PEOs? Check out our eBook, How Well Do You Know PEO? This eBook provides an overview of the PEO industry as well as helpful information for brokers and employers!