Is it time to switch benefits providers? 5 Red flags to watch for.

Employee benefits are one of the most valuable tools a company has to attract and retain top talent. Health insurance, retirement plans, and wellness programs play a major role in shaping employee satisfaction and overall workplace culture. But not all benefits providers deliver the level of service and value your organization's needs. If your current provider isn’t meeting expectations, it may be time to consider making a change. Here are some red flags that signal it may be time to reevaluate your benefits provider. 

1. Rising Costs Without Added Value 

Premiums and plan costs naturally rise over time, but if you’re seeing significant increases year after year without a high claims history to justify the increase, consider it a red flag. A quality provider should be transparent about why costs are rising and help you explore options to control expenses without sacrificing employee coverage. 

2. Limited Plan Options 

Your workforce is diverse, and so are their needs. If your provider only offers cookie-cutter plans or lacks flexibility in customizing benefits, employees may feel underserved. Providers should offer a range of options—from comprehensive health plans to voluntary benefits—that reflect the different life stages and priorities of your team. 

3. Poor Customer Service 

Benefits should make life easier, not more complicated. If employees frequently struggle to get answers, face long wait times, or encounter confusing claims processes, dissatisfaction can spread quickly. Likewise, HR teams should have access to responsive account managers who can resolve issues promptly. A lack of support is often a strong sign that it’s time to switch providers. 

4. Outdated Technology

Today’s workforce expects digital convenience. Online portals, mobile apps, and clear communication tools are now the norm. If your provider still relies heavily on paper forms, manual processes, or clunky systems, it can lead to frustration for both employees and HR staff. Up-to-date technology is essential for efficiency and engagement. 

5. Lack of Strategic Guidance 

A benefits provider should be more than a vendor—they should act as a partner. If your provider isn’t offering proactive advice, helping you manage compliance, or guiding you on how to get the most out of your benefits package, you may be missing opportunities to strengthen your program. 

Making the Switch 

Switching benefits providers can feel daunting, but staying with one that no longer meets your organization’s needs can be far more costly in the long run. By watching these red flags and evaluating your options, you can ensure your employees have access to benefits that truly support their well-being while keeping your organization competitive. 

For more information, contact Michelle Willard, Director of Employee Benefits at Knight Insurance Group.