HR leaders are facing a growing storm: workforce burnout, economic volatility, mounting compliance demands, and the disruptive rise of AI. To weather it, many are leaning on what software provider isolved calls an “advisory village”—a coalition of accountants, bankers, brokers, consultants, and financial advisors who are stepping up as strategic partners, not just transactional vendors.
That’s the key takeaway from isolved’s third-annual Advisory Services Research: “Activating HR’s Trusted Village.” The study, based on responses from more than 1,000 U.S. advisors, paints a picture of a profession in transition.
Beyond Insurance and 401(k)s
Traditional offerings like health insurance and retirement plans are still the foundation of advisor-client relationships. But isolved’s data shows advisors are moving into more complex territory, helping businesses anticipate risk, adopt technology, and stretch the value of benefits far beyond the basics.
Economic uncertainty ranked as the biggest client challenge, followed by compliance with ERISA and FMLA regulations. The irony: just 16% of advisors currently support ERISA, and only 21% support FMLA. That gap is closing—leave management was cited as the top service advisors plan to add in the next year.
Employers are also experimenting with commuter benefits, Premium Only Plans (POPs), and new perks tied to return-to-office strategies. Here, isolved is betting its new Benefits Guidance tool—an AI-powered decision-support system for employees choosing benefits—will help bridge the gap between choice overload and engagement.
AI: Opportunity and Unease
The survey underscores AI as both a catalyst and a concern. Across all advisor types, the top growth opportunity is using AI and automation to personalize strategies, from smarter benefits planning for brokers to predictive financial modeling for accountants.
Already, half of brokers use AI to automate processes, 44% of bankers deploy it for compliance monitoring, and 65% of financial advisors feel confident advising clients on AI-powered HR tools. Still, more than 60% admitted worry that automation could erode the relationship-driven nature of their work.
The Village at Work
Advisors aren’t going it alone. Most blend in-house expertise with support from third-party administrators (TPAs) and HCM technology partners, acting as the client’s main conduit to both. What businesses want most in these partners: customer service, compliance expertise, and smooth onboarding.
“Advisors are the market makers across benefits, talent, payroll and HR,” said Amberly Dressler, SVP of Brand & Experience Marketing at isolved. “They influence how organizations navigate internal and external pressures—and it’s clear they’re indispensable in helping businesses succeed.”
Why It Matters
If 2024 was the year of HR teams scrambling to manage AI disruption and compliance crackdowns, 2025 may be the year advisors cement their role as co-pilots in HR strategy. For SMBs that can’t afford sprawling in-house HR departments, an advisory village could be the difference between surviving the storm and falling behind.
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