Insurance Agents and HR Outsourcing – A Mutually Beneficial Partnership

Insurance Agents and HR Outsourcing - A Mutually Beneficial Partnership

As the regulations have piled on and the difficulties of running a small business have increased over the last few years, more and more insurance agents have recognized that the right Professional Employer Organization (PEO) or HR outsourcing relationship increases their product offering and allows them to differentiate themselves from their competitors. Agents are responding to the unique employee administration needs of their clients and prospects on a more frequent basis. Just as the insurance needs of similar companies in the same industry can vary greatly, every employer has different needs when it comes to handling their employees. By customizing an employee administration solution that will best help the business, agents are finding that they become closer to the internal operations of their clients, improving their relationships and closing and retaining more business. Whether it is a payroll deduction product with the agent’s insurance products or a full service PEO product, independent agents benefit from helping their clients reduce employment related risk and simplifying the back end of employee administration.

The key to successfully rolling out a PEO or HR outsourcing relationship is to take a consultative sales approach toward every new business opportunity. The PEO or HR outsourcing company must work closely with the agent to understand the problems each client and prospect faces. These consultations can be done by phone or in person and are a great way to communicate the combined expertise in helping the business more effectively handle their employees. The sales process should address the common problems that small businesses face and clearly communicate where the combined solutions can provide value. These value propositions include: improving employee turnover, improving safety and workers’ compensation cost, reducing benefits cost and administration, and simplifying unemployment claim administration.

Employee administration can be very complicated. One of the primary focuses of a combined agent/PEO relationship must be to take all of the intricacies of payroll, HR, benefits and workers’ compensation, and turn these responsibilities into a simple turnkey system. To do so successfully, innovative, Web-based technology must be combined with proactive communication and exceptional customer service. This combination produces positive outcomes for clients and allows them to focus on their core businesses.

Four Point HR enjoyed consistent growth over 2010 in its small business employee administration business. The growth has been the direct result of establishing close partnerships with insurance agents located throughout the Southeast. We have been successful in these relationships because we have embraced the unique relationship that agents have with their clients. We treat our relationship with the agent in the same manner that an insurance carrier would. We support the agent with marketing materials, respond with quotes within 24 hours of the receipt of a submission, assist the agent in closing and enrolling new clients, pay commissions timely for the life of the client relationship, and communicate closely with the agent throughout the relationship. Four Point HR is committed to growing its business through profitable agency partnerships and 100% of our new business opportunities come from referrals and agency prospects.