As businesses face increasing complexities in workforce management, advisory service firms are forming strategic partnerships with human capital management (HCM) providers to stay ahead of these challenges. According to isolved’s second-annual “Advisory Services Research: The State of Benefits, Financial and HR Consulting (2024-2025)” study, these partnerships are crucial for managing risks and meeting evolving client expectations.
- Evolving Demands and Short Timelines:
- Businesses must adapt quickly to changing demands, with regulatory scrutiny, particularly in data privacy and HCM services, expected to disrupt the industry by 2026.
- Integration of artificial intelligence (AI) presents the biggest opportunity within the next 12 months.
- Client Needs and Service Gaps:
- Clients, including business owners and HR professionals, are under pressure to adapt to these changes.
- Top solutions advisors plan to offer in the next year include FMLA/leave management, ACA reporting, POPs, ERISA support, COBRA administration, and HSAs.
- Challenges in Offering New Services:
- A significant barrier to offering FMLA/leave management services is a lack of familiarity with the offering, indicating a need for enhanced education and resources.
- Strategic Importance of HCM Expertise:
- Advisory firms must provide comprehensive HCM solutions and compliance support to meet client expectations and strengthen relationships.
- The survey highlights isolved’s role as a trusted HCM partner, with a growing referral channel driven by its strong reputation.
- Key Survey Findings:
- 91% of brokers would refer isolved to their clients.
- 95% of brokers are satisfied with isolved’s offerings.
- isolved ranks as a top HCM vendor and the most frequently referred third-party administrator (TPA).
As the advisory services landscape evolves, firms that partner with trusted HCM providers like isolved will be better positioned to navigate regulatory challenges and meet client demands. By offering a broader range of solutions and leveraging cutting-edge technologies, these firms can solidify their role as essential partners in workforce management.