The great untapped (by advisors) mid and small plan HR or benefits professional market includes more than 100,000 DC plans with $3 million-$250 million. What are they like? What are the challenges for advisors?
For HR professionals, benefits are a tactical and necessary part of the job, but it’s the strategic aspects that are most fulfilling and financially rewarding. Hiring, training, creating culture, building teams and working with senior management to align people with the strategic goals of the company are why most people got into HR. Though companies are taking on more responsibility for financial literacy/wellness and helping workers save for retirement, it’s not their primary mission.
HR people in most, though not all, companies struggle for relevance and recognition as well as resources. Since they don’t make or sell a product, less enlightened companies might not recognize their importance – IT is considered more important because when the computers or phones don’t work, it’s obvious. It’s less obvious when a culture is broken.
So how can advisors befriend HR? It can be hard. For one thing, most HR professionals are women and most advisors are men. Showing up in an expensive suit, driving a Mercedes or BMW, or wearing a Rolex watch is not going to win friends among people who are generally paid less than a third of what a mediocre wholesaler makes. Neither does an attitude, no matter how subtle, of, “It’s really nice chatting with you, but when do I get to meet your boss or someone who can make a decision?”
These people are intuitive – it’s their job! They have the power to say no and can cripple an advisor’s efforts to be hired. On the other hand, they can be a great ally and become an advisor’s “internal sales people.”
Advisors often complain about leads or referrals to HR people, not the decision maker. Do you think those advisors will “click” with the HR person who will most likely be part of the decision making team?
After all, if the advisor is hired, it’s the HR person who will have to work with them.
Opinions expressed are those of the author, and do not necessarily reflect the views of NAPA or its members.
