When an employer initiates an advisor (broker/consultant) Request for Proposal (RFP), the goal is to determine if a potential advisor is a better fit than their current provider. It’s important organizations look to identify where their current broker is falling short in meeting expectations. Common areas of concern include strategic planning, service response time, data analytics, communication, and compliance support. While employers consider many factors, most teams, whether HR, finance, or procurement, tend to focus their “wish list” on three key areas known as the “3 C’s”: Capabilities, Confidence, and Compatibility.
Capabilities: The goal of this element is to assess relevant prior experience. Some questions employers may ask include:
- Has the advisor worked with other clients who have a similar profile to my organization?
- Provide client testimonials based on live conversations with existing clients that are dated, or boilerplate references from the same industry and with a comparable number of covered lives?
- What kind of results have they achieved?
Employers are focused on the firm’s history, senior leadership expertise, and how the service model differentiates itself in the market. Before releasing an RFP, it’s important for employers to clearly define what capabilities truly matter to them and specify exactly what is needed to be successful.
Confidence: Employers assess the advisor’s capabilities, not how confident the advisor is in their team or company. For example:
- How confident am I that you can solve my specific issues right now?
- I see from your capabilities that you’ve solved other clients’ issues. Can you solve mine?
- Are you actively listening to my challenges, and can you clearly present a plan that fits my budget and addresses my problems?
Without measurable results tied to relevant challenges, an advisor’s capabilities are just a list of possibilities. Most employers aren’t interested in a generic list of “possible solutions;” they want concrete solutions tailored specifically to their needs.
Compatibility: The goal of this element is for the client to decide whether to sign a new Broker of Record (BOR) or a new Statement of Work (SOW) and change advisors. This is an important step for both the employer and the potential new advisor. When assessing compatibility, employer teams are asking themselves:
- Can I see myself and my team working day-to-day with the advisor’s team?
- Would I confidently recommend the lead consultant and advisory firm to my boss or the C-suite?
- Would I invite the advisor to our executive off-site meeting to present on a key topic in the benefits arena?
Without clearly identifying top priorities or goals, an advisor RFP process can become time-consuming for the employer and feel like a “check the box” exercise. However, by aligning your RFP with broad strategic objectives, employers can minimize time spent on routine, boilerplate questions and focus on areas where true differentiation helps make a well-informed decision. Employers should view the RFP as an opportunity to start fresh and propel their employee benefits program into the future.
To learn more about how MMA’s insurance solutions can protect your organization, reach out to an MMA advisor.
