Employee benefits packages are significant factors helping employers recruit and retain a high-quality team. However, researching and implementing these plans can be time-consuming and challenging for non-experts.
To meet these needs, many organizations rely on the guidance of employee benefits consultants to navigate all the specifics of these packages and decide on the most financially sustainable, competitive package. In this article, we discuss what an employee benefits consultant is, what they do, how to become one, how much they make and the skills needed for a career in employee benefits consulting.
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What is an employee benefits consultant?
An employee benefits consultant works as an independent contractor to help companies research, procure, dispense and manage benefits packages. They make work individually or as part of a team to advise the organization’s owners about available benefits, vendors and costs.
Employee benefits consultants are highly knowledgeable of various types of benefits, including health insurance, life insurance and retirement plans. Federal and state governments enforce highly regulated standards for certain benefits, such as health insurance and retirement plans. Employee benefits consultants can help employers implement compliant packages and documentation and adjust these materials as needed when laws change.
Organizations can also employ employee benefits consultants to ensure their benefits packages to align with their vision and values. For example, if an organization promotes healthy lifestyles, a consultant may recommend wellness incentives, like gym memberships, or adding an on-site wellness center.
What does an employee benefits consultant do?
Employee benefits consultants may perform the following functions for an organization:
Meet with owners to discuss company needs, such as number of employees, budget and growth projections.
Research various types of benefits, including health and life insurance, retirement packages, wellness packages and student loan repayment plans.
Analyze nontraditional benefit options and pay structures to determine cost-effectiveness.
Compare benefits packages from similar companies, industries and businesses in the same region to ensure a company remains competitive to job seekers.
Receive quotes from benefits providers.
Present options to company owners with detailed costs and offerings.
Assist employers in contracting with vendors.
Implement benefits packages throughout the company by enrolling employees.
Create benefits enrollment procedures for new employees.
Answer employee questions about their benefits packages.
Take part in benefits negotiations.
Conduct employee surveys to learn what benefits are important to them.
Identify relevant tax regulations for companies.
Advise employers on the laws and regulations governing certain benefits.
Speak with current employees about their roles and write job descriptions.
Help create websites for employees to explore their benefit options.
Reevaluate benefits packages regularly and suggest updates.
How much does an employee benefits consultant make?
Employee benefits consultants make an average of $51,835 per year in the U.S., and the Bureau of Labor Statistics estimates that compensation, benefits and job analysis specialists will experience an 8% rate in job growth between 2019 and 2029. This is faster than the national average growth rate of 4% for all jobs.
Many benefits consultants do not receive direct compensation from insurance companies or other benefit providers so they can remain neutral in their recommendations to employers.
How to become an employee benefits consultant
Here are the steps to become an employee benefits consultant:
1. Earn your bachelor’s degree
Many employee benefits consultants earn a bachelor’s degree in areas such as:
Human resources
Business administration
Finance
Communication
If you’re earning a degree in another field, consider taking human resources or business administration courses to help learn helpful professional strategies for analyzing benefits packages.
2. Gain experience in the field
Before working as a consultant, many employee benefits professionals first work in human resource departments. Duties such as benefits administration and payroll can help with a career in consulting. Additionally, experience working with health insurance, life insurance, finance and business are valuable. You can leverage several years of experience when applying for consulting positions with a firm.
3. Become certified
Numerous organizations offer certifications for benefits specialists. Here are a few certifications you may consider:
Chartered Federal Employee Benefits Consultant (ChFEBC): This certification is offered through the Financial Industry Regulatory Authority requires three years of financial services experience and passing the two-hour certification exam.
Certified Employee Benefits Specialist (CEBS): This certification is offered through the International Foundation of Employee Benefits Plans and administered by The Wharton School and requires passing the national certification exam.
Additionally, employee benefits managers may need to become licensed insurance brokers depending on their job responsibilities. Each state has different guidelines, including a required number of hours of training courses before taking the licensing exam. Candidates must pass their state exam and complete all other requirements before working as a broker.
4. Locate open positions
Find job availabilities by searching job sites, subscribing to industry publications and websites and networking with professionals in the field. Submit your cover letter and resume, making sure to highlight your relevant human resource, benefits and finance experience.
5. Consider working independently
You may decide that you want to consult with companies on a freelance basis rather than join a consulting firm. This career path requires consistent networking to find clients and developing strong business skills to manage your own company.
Employee benefits consulting skills
Employee benefits consultants need the following professional skills:
Research skills: Employee benefits consultants must research many benefit plans, policies and vendors. They may also conduct interviews and write reports.
Analytical skills: Employee benefits consultants sort through dense information and determine which plans best meet their clients’ needs.
Communication skills: Employee benefits consultants must be able to communicate effectively with clients, employees and vendors. This involves active listening and explaining complex topics.
Presentation skills: Often, consultants present their findings to company owners and shareholders. Consultants should create professional presentations and be able to deliver their recommendations clearly.
Computing skills: Organizing and analyzing their data requires employee benefits consultants to be familiar with relevant HR software and programs.
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