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By Andrew Hinchliff

Topics: Insurance Brokers

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If you ask an employee who’s the highest compensated person working for a business, they’ll likely tell you the CEO or the business owner. After all, the people at the top of the hierarchy deserve to get their fair share.

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Even among shareholders and top executives, most believe the largest share of compensation goes to the executives and upper-level management. Is it the truth though?


The Visibility Issue

Most people name the VP or the CEO or another high-level executive or manager as the person getting top bucks because that person is in plain sight. They may not interact with the CEO on a day-to-day basis, but they’ve likely seen the person’s picture or read a memo signed by them and circulated to staff.

The “out of sight, out of mind” rule is at play here. People think these executives and upper-level managers are the best-compensated employees because they see them. They may not see the person who’s actually getting the lion’s share of compensation precisely because they never see or think about them!


Think about Your Broker

Very few people remember they work with brokers or even class them as “employees,” which is why they often tend to get missed when it comes to surveys of who in the company is getting the sweetest compensation package.

This invisibility allows your broker to fly under your radar and collect some hefty compensation, sometimes for doing next to nothing at all!


Ask What Your Broker’s Done for You Lately

You probably don’t speak to your broker very often, which is why you didn’t think of them as being among your best-compensated employees. Even if you don’t speak with the CEO on a daily basis, you probably have more contact with them than you do with your broker!

Most brokers have very good commissions on your business, and many of them do as little work as possible for those commissions.

What’s going on? Your broker likely signed you up with an insurance provider and left it at that. Very few brokers actually go out and shop their clients around on a regular basis. Those who do are committed to making sure you’re getting the best possible price and the package that fits your needs.

Most brokers prefer a more laissez-faire approach. They sign you up and collect the commission for “managing” your account for years on end, without ever really doing much. The insurance provider may increase your costs time and time again, but the broker won’t budge until you force them to.


What Are You Paying For?

Take a look at your broker’s track record and see what they’ve done for you lately. Is there any evidence they’ve shopped your account around to get competitive pricing? Or are they content to do the minimum while collecting the maximum?

If your broker isn’t shopping you around, you need to ask what you’re paying for! Everyone else employed by your business works hard to earn their keep. Your broker should be no exception to the rule.

Similarly, your broker needs to earn your trust. Even if your account is being shopped around, are you getting the absolute best deal? Don’t take your broker’s word for it. Talk to other brokers or do your own research. If you can find something better, your broker could be operating without your best interests in mind.


Time to Switch?

If your broker isn’t working with your best interests in mind, it’s time to make a switch. Look for a more effective partnership. Consider a broker who works hard for their money, going out and shopping around to get you the best deal.

It’s easier than you think to find a broker who will do more for you.


what-is-workforce-management-and-why-does-your-business-need-it

Andrew Hinchliff

With over 30 years of experience, Paymedia’s Chief Operating Officer Andrew Hinchliff is a seasoned global business leader and results-driven human capital and workforce strategist who is well-versed in human capital management, workforce management, payroll outsourcing, and benefits administration. He’s passionate about strategy and innovation and is regularly sought out for assignments that create disruptions to current business models and practices. Andrew is actively involved in coaching youth football and is an avid golfer. His strong beliefs in philanthropy have him “giving back” by volunteering for a host of charitable foundations and community-based events.

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