2016 BENEFIT BROKER& FINANCIAL ADVISORINSIGHT REPORT

The role of brokers & advisors isshifting quickly and dramatically.

Financial AdvisorBenefit BrokerProvide more

consultations as a result of the ACA

Compete regularly with companies like

Zenefits & Gusto

Face the demands of a well-educated, tech-

savvy clientele

Endure the side effects of a sluggish U.S.

economy

Prepare for the change in workforce

demographics

Contend with digital advisory firms

The Anatomy of the Broker’s & Advisor’s New Role

Client needs are also shifting.

Clients just want a provider; clients expect a partner.

A partner who helps clients stay compliant.

A partner who helps clients stay compliant.A partner who helps clients stay informed.

A partner who helps clients stay compliant.A partner who helps clients stay informed.A partner who helps clients stay proactive.

How can brokers and advisorstransform into a partner?

Paylocity’s newest survey examines what HR & payroll professionals truly want from their broker & advisor.

ONEDiscover new opportunities to turncustomer satisfaction into customer loyalty.

Customer loyalty is a two-way street.

When organizations focus more on addressing customer needs and lesson the intended business result…

When organizations focus more on addressing customer needs and lesson the intended business result…

…customers are more likely to spend money, remain with organizations longer, and refer friends and family.

How can brokers & advisors create this type of customer loyalty?

1. Learn which services are most important to clients.

1. Learn which services are most important to clients.

2. Note clients’ satisfaction with each service.

1. Learn which services are most important to clients.

2. Note clients’ satisfaction with each service.

3. Explore any gaps that exist between importance and satisfaction.

Identifying the Gap for Benefit Brokers: Importance v. Satisfaction

Identifying the Gap for Benefit Brokers: Importance v. Satisfaction

Rated most important service & highest in

satisfaction

Identifying the Gap for Benefit Brokers: Importance v. Satisfaction

Large gap exists between

importance & satisfaction

Identifying the Gap for Benefit Brokers: What Does it All Mean?

• Brokers are meeting client expectations & needs in regards to benefit packages.

Identifying the Gap for Benefit Brokers: What Does it All Mean?

• Brokers are meeting client expectations & needs in regards to benefit packages.

• There are opportunities to improve on services rated high in importance & low in satisfaction.

Identifying the Gap for Financial Advisors: Importance v. Satisfaction

Identifying the Gap for Financial Advisors: Importance v. Satisfaction

Rated most important

service, but not highest in satisfaction

Identifying the Gap for Financial Advisors: Importance v. Satisfaction

Large gap exists between

importance & satisfaction

Identifying the Gap for Financial Advisors: Importance v. Satisfaction

Rated higher in satisfaction

than in importance

Identifying the Gap for Financial Advisors: What Does it All Mean?

• There are opportunities to improve on services rated high in importance & low in satisfaction.

Identifying the Gap for Financial Advisors: What Does it All Mean?

• There are opportunities to improve on services rated high in importance & low in satisfaction.

• Services rated high in satisfaction and low in importance suggest advisors are generally doing an effective job.

TWOLearn about clients’ biggest concerns.

The Most Concerning Employee Benefit Challenges

EMPLOYEE BENEFIT CHALLENGE PERCENTAGE

1 Managing healthcare costs 89.62%

2 Maintaining compliance & staying current on changing legislation 88.41%

3 Educating employees on benefit enrollment 73.70%

4 Using benefits to attract & retain employees 70.76%

5 Helping employees become better consumers of healthcare 67.47%

6 Managing prescription drug costs 65.92%

7 Educating employees on health and wellness 57.09%

8 Developing wellness programs 42.04%

With the onset of the ACA, managing healthcare costs is more critical than ever.

HR and payroll professionals are taking a number of steps to control these costs.

Steps to Control Costs

Adding a high-deductible plan¹

¹ Miller, S. (2015, May 21). “2016 Will be Costly Year for ACA Compliance, Employers Say.” Retrieved December 28, 2015.

Steps to Control Costs

Offering a health savings account¹

¹ Miller, S. (2015, May 21). “2016 Will be Costly Year for ACA Compliance, Employers Say.” Retrieved December 28, 2015.

Adding a high-deductible plan¹

Steps to Control Costs

Consulting with a benefit broker²

Offering a health savings account¹

¹ Miller, S. (2015, May 21). “2016 Will be Costly Year for ACA Compliance, Employers Say.” Retrieved December 28, 2015.2 Kuehner-Herbert K. (2014, September 10). “ACA Forcing Changes for Brokers.” Retrieved December 28, 2015.

Adding a high-deductible plan¹

The Most Concerning Retirement Plan Challenges

RETIREMENT PLAN CHALLENGE PERCENTAGE

1 Keeping up to date on regulatory changes 70.53%

2 Educating employees on retirement plans 63.95%

3 Offering competitive retirement plan benefits 60.53%

4 Increasing plan participation 57.11%

5 Structuring your company’s matching contribution 38.42%

6 Setting up auto-enrollment 31.06%

7 Shifting workforce demographics 25.00%

8 Excluding part-time employees 14.48%

THREEExplore reasons that would prompt clients to change brokers and/or advisors.

Reasons a Client Would Leave His or Her Benefit Broker:

A decrease in service could include:

Responding slowly to questions

A decrease in service could include:

Responding slowly to questions Having an inadequate enrollment process

A decrease in service could include:

Responding slowly to questions Having an inadequate enrollment process Offering fewer health options

A decrease in service could include:

Responding slowly to questions Having an inadequate enrollment process Offering fewer health options Communicating infrequently with employees

A decrease in service could include:

Responding slowly to questions Having an inadequate enrollment process Offering fewer health options Communicating infrequently with employees Providing minimal support & resources

Reasons a Client Would Leave His or Her Financial Advisor:

A decrease in service could include:

Responding slowly to questions

A decrease in service could include:

Responding slowly to questions Having an inadequate enrollment process

A decrease in service could include:

Responding slowly to questions Having an inadequate enrollment process Providing minimal insight on regulations

A decrease in service could include:

Responding slowly to questions Having an inadequate enrollment process Providing minimal insight on regulations Giving bad financial advice to the company

A decrease in service could include:

Responding slowly to questions Having an inadequate enrollment process Providing minimal insight on regulations Communicating infrequently with employees Offering simplified technology

About Paylocity

Paylocity (NASDAQ: PCTY) develops industry-leading, cloud-based payroll and human capital

management software solutions for medium-sized organizations. Our comprehensive and easy-to-

use solutions enable clients to manage workforces more effectively. Paylocity’s intuitive, highly

configurable solution unifies payroll and HCM applications, such as time and labor tracking, benefits,

and talent management. Our solutions help drive strategic human capital decision-making and

improve employee engagement by enhancing the human resources, payroll, and finance capabilities

of our clients. Learn more about Paylocity by visiting our website, www.paylocity.com.

To download the complete survey, click here.

About the Survey