The right employee benefits consultant is the one who can show you three things: the work they will actually do for you all year, the people who will do it, and the results they have produced for employers your size. Everything else in the search tests those three.
Here is how to run it, from the first interview to the final record.
Why Getting This Right Matters
Benefits are most companies’ second largest expense after payroll, and the consultant relationship shapes nearly every dollar: which carriers see your renewal, how hard rates get negotiated, and where employees turn when a claim goes sideways.
There is a legal side too. Most group health plans are governed by ERISA, and choosing the people who service the plan is a responsibility the law expects you to handle prudently.
Employees at several large companies are now suing their employers over how their health plans were run, and those cases all attack the same thing: no documented process.
An automatic renewal every year, with no record of why, is exactly that.
Proposals all look alike. Differences only show up when you put the same questions to each firm and write them down. We built a working tool for that stage.
Before you compare anyone, it helps to be clear about what you are buying. The titles in this market do not make that easy.
What Does an Employee Benefits Consultant Actually Do?
The title tells you almost nothing.
The service agreement tells you everything.
Broker, consultant, and advisor all describe licensed professionals who help employers design, buy, and manage benefits, and the titles are used interchangeably.
That is why the practical differences between a benefits broker and a benefits consultant come down to services and compensation, not the name on the card.
A full-service relationship covers four areas:
- Market and renewal work. Shopping your plan across carriers and funding types, negotiating rates, and presenting real options rather than one renewal to sign.
- Plan design. Matching coverage to your workforce and budget, including whether level-funded or self-funded arrangements fit. A good firm is as clear about the real risks of self-funding a health plan as about the savings.
- Compliance support. Surfacing ACA reporting, COBRA, and ERISA notice and filing issues before your counsel has to. Consultants do not give legal advice.
- Employee support. Enrollment help, plain-language communication, and somewhere other than your HR inbox for claim problems.
Some firms deliver all four year-round. Some quote your renewal and go quiet for eleven months. The search tells them apart before you sign.
What Questions Should You Ask a Benefits Consultant?
Capabilities decks all say the same thing. Scenarios do not.
Describe a specific moment and ask what happens next:
- “Our renewal comes in 15 percent higher than expected. Walk us through your next 30 days.” Listen for a process: audit the increase, pull claims data, push the carrier, shop the market in parallel.
- “An employee’s claim is denied during open enrollment. Who fixes it, and how fast?” You want a named person, a response time, and an escalation path at the firm’s busiest moment.
- “We get a benefits inquiry from the DOL. What do you hand us?” A strong answer describes the plan records the firm helps you keep, including the plan’s annual gag clause attestation.
- “Do you receive any compensation from the carriers or vendors you recommend to us?” Those lawsuits have made vendor conflicts a live issue. You want a plain answer, in writing.
Ask who works on your account day to day, then put the same scenarios to references your size.
If you are comparing several firms, running a structured benefits RFP keeps the answers comparable instead of anecdotal and leaves you the written record that protects the decision.
Should You Re-Evaluate the Consultant You Already Have?
Yes.
Grade the incumbent on the same sheet as everyone else.
Most employers keep the same firm by default, not by decision.
Signs the default deserves a look: you only hear from the firm at renewal, the renewal arrives late with one option, compensation answers stay vague, or employee problems keep landing on HR instead of the consultant.
Those headaches usually trace back to benefit administration gaps that create HR problems
a good firm would have closed.
Most searches start four to six months before renewal, common practice rather than a legal requirement. A broker of record letter can move the relationship mid-year, but most companies wait for renewal.
Include your current firm. It is fair, and it gives you a benchmark.
If they win, you have documentation the arrangement is reasonable. If they lose, you learned it through a comparison, not another bad renewal.
How Is the Consultant Paid, and What Must They Disclose?
Once you know what a firm does, ask what it costs. Most firms earn a carrier commission tied to your premium, a flat fee, or a mix.
Neither is automatically wrong, but a commission rises when your premium rises and a fee does not, so know which one you are buying and what it adds up to in dollars.
Since late December 2021, federal law has required firms providing brokerage or consulting services to an ERISA group health plan to disclose their compensation in writing before the contract is signed, extended, or renewed, once expected compensation reaches $1,000.
It covers direct and indirect payments, like carrier bonuses and overrides. The rule sits in ERISA Section 408(b)(2), added by the Consolidated Appropriations Act of 2021.
That document exists so you can judge whether the compensation is reasonable for the services, and you should keep a record showing you looked.
It is also a character test.
A firm that produces it quickly and walks you through it is showing you how the rest of the relationship will go.
The Bottom Line
Judge every candidate on the three things at the top of this post: a year-round service model with named people, results you can verify at your size, and terms you can see in writing. Most of the noise falls away against those three.
The harder question is closer to home.
Would your current arrangement pass that test, or has it never been asked to take it?
That is easier with a structured reference than from memory, which is what the workbook below is for.
The Point Underneath All This
Underneath it all, this is about process.
You cannot control the insurance market or what carriers do at renewal.
You can control whether the firm managing your second largest expense was chosen deliberately, on documented criteria, and gets re-examined on a schedule.
The real test is whether you could explain, to anyone who asked, how that firm earned the job.
Knowing what a good consultant relationship looks like is one thing. Confirming that yours looks like it is another.
Two ways to close the gap: a second set of eyes on your current program, or working through the evaluation internally first.
If You Want a Clearer View of Your Plan
Our team walks employers through what their benefits program is actually delivering: the services your current firm provides year-round, how the plan design fits your workforce, where the gaps are, and how your renewal process compares to what similar companies see.
A brief review gives you a clear picture of what you have and what is missing.
Schedule a Brief Review or give us a call, (206) 625-1800.
Prefer to Evaluate This Internally?
Download the Consultant Selection Workbook and work through it with your own team first.
It runs from a needs checklist through candidate comparison, scenario questions, and the compensation disclosure review, and leaves you a written record of the decision.
Disclosures
Educational purpose only. Provided by First Hill Trust Company for general informational and educational purposes only. It is not legal, tax, accounting, investment, or fiduciary advice, does not constitute a recommendation regarding any plan, investment, strategy, or course of action, and does not consider any recipient’s specific circumstances. Consult your own qualified advisors before acting.
No offer, agreement, or commitment. Nothing in this material constitutes an offer, solicitation, agreement, or commitment to provide any particular service or to assume any particular responsibility. Descriptions of what a trustee, administrator, adviser, committee, employer, or other party “may” or “can” do are illustrative of how such arrangements commonly work and do not describe the terms of any specific engagement. The actual services provided, the allocation of responsibilities, the scope of any delegation, and the duties of any party are governed solely by the applicable plan documents, trust agreement, advisory agreement, and written service agreements. In the event of any inconsistency, those documents control.
Services and regulatory status. First Hill Trust Company and its affiliates offer retirement plan services, recordkeeping and administrative services, trust and fiduciary services, investment advisory services, and group benefits services, in each case subject to applicable regulatory requirements and the terms of the relevant agreements. Not all services are offered to all clients, in all states, or in all circumstances. Investment advisory services are offered through an affiliated investment adviser; a copy of its Form ADV Part 2A is available upon request. Insurance and group benefits products are offered through appropriately licensed entities. The availability and scope of any service depend on eligibility and the applicable agreements.
Fiduciary status under ERISA. Fiduciary status under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), is determined based on the functions performed and the authority exercised, not on titles or labels. Whether any particular party is acting as a fiduciary, and the scope of any related duties or potential liability, depends on the facts and circumstances specific to the plan and the relationship. Engaging a trustee, adviser, or other service provider does not eliminate a plan sponsor’s or committee’s own fiduciary responsibilities, including the duties to prudently select and monitor any party to whom responsibilities are delegated.
Affiliated entities and conflicts of interest. First Hill Trust Company is affiliated with other entities, including an affiliated investment adviser and entities providing administrative, trust, or other services. These relationships may create conflicts of interest, including where an affiliate is engaged or compensated in connection with a plan. Such conflicts and compensation are described in the applicable service agreements and the affiliated adviser’s Form ADV Part 2A; fiduciaries should consider them when evaluating any engagement.
References to ERISA, the Internal Revenue Code, SECURE 2.0, Washington Saves, or other federal or state laws, regulations, or government programs are general summaries only and should not be interpreted as legal guidance or a complete statement of the law. Laws, regulations, agency guidance, and program requirements are subject to change and interpretation. Examples and illustrations are simplified for explanatory purposes and may not reflect every circumstance or apply to every employer or retirement plan.
Unless otherwise noted, figures, contribution limits, tax credits, and other numerical examples are current as of 2026 and are subject to change. IRS contribution limits and catch-up amounts are adjusted periodically for inflation. Eligibility for SECURE 2.0 tax credits depends on individual facts and circumstances. Certain Washington Saves program provisions, including default contribution rates, investment options, and implementation details, remain subject to final program rules and may change before implementation.
Statutory and regulatory references. References to ERISA, the Internal Revenue Code, and related statutory or regulatory provisions are general summaries only. They are not a substitute for review of the actual statutory text, regulations, or guidance from the Department of Labor, Internal Revenue Service, or other relevant authorities, and they do not address how those provisions may apply to any particular plan, sponsor, fiduciary, or individual. Laws, regulations, and guidance are subject to change and to interpretation by the relevant agencies and courts. Examples, categories, and situations described are simplified for illustration and may not reflect the requirements or circumstances of any particular plan or person.
No guarantee of results; investment risk. References to governance, fiduciary practices, risk reduction, or outcomes describe common industry approaches and potential benefits, not promises or guarantees of any result, of compliance, or of protection from liability, loss, or claims. All investing involves risk, including possible loss of principal; diversification does not ensure a profit or protect against loss. Past performance does not guarantee future results.
For more information, contact First Hill Trust Company at (206) 625-1800.
