As National Small Business Week approaches, May 4 – 10, Lincoln Financial (NYSE: LNC) is sharing its latest research of more than 550 U.S. small business owners’ (5-499 employees) experiences regarding workplace benefits selection and communication needs. This research finds that the small business owners surveyed want to invest more in workplace solutions for their employees’ health and finances, and, with the right guidance, they can use these benefits to help drive business success.
According to this study, small business owners feel the right employee benefits, retirement plan services and well-being solutions can help attract and retain quality talent — one of their biggest challenges — along with managing the cost of employee benefits. However, employers often lack the understanding and external partnerships to capitalize on their workplace offerings as solutions.1
The study found several areas in which the small business owners surveyed wanted to offer additional benefits to their employees, including helping employees cover medical expenses (46%), be more financially secure (55%) and save for retirement (55%).1
Small business owners’ modest familiarity with benefits may also work against them. Only 63% of survey respondents said they’re very familiar with options related to covering medical expenses and only 45% were familiar with offerings available to help their employees be more financially secure. Many small business owners place more importance on benefits areas where they’re more familiar, and they focus on standard “must have” benefits — offering an average of just seven of the 22 non-retirement benefits listed in the study.1
As a result, they often bypass offerings, such as voluntary benefits, that could help them support their employees in the way they wish to, while also differentiating them from their competitors and helping to retain valuable talent. For instance, of the three quarters of small business owners who consider helping with medical expenses a must-have, only 56% do not offer accident insurance, 65% do not offer critical illness and 65% do not offer hospital indemnity.1
Partnering with a trusted broker, carrier or financial professional can help small business owners understand how the right benefits mix, technology and services can provide more opportunities for employee well-being and their own business success.
“We work with small businesses every day, providing services and products centered on ease, access and affordability,” said Jimmy Reid, Executive Vice President, President of Workplace Solutions at Lincoln Financial. “We’re committed to helping them succeed. By knowing the challenges small business owners face today, we can do our part as a consultative partner to offer small business owners the right products and services to inspire financial well-being and turn their benefits challenges into opportunities.”
Just over half (54%) of the small business owners surveyed work with a benefits broker or consultant. And with nearly three out of four (72%) small businesses saying they review their benefit offerings at least once a year, having a trusted partner who understands their business strategy and employee value proposition can save small business owners time that they can then invest in running their business.1
Trusted brokers or carriers can provide valuable benefits guidance and education to address small business owners’ biggest pain points, including sharing cost-saving options like benefits bundling, voluntary benefits and financial wellness tools to support their employees and differentiate them from their peers, and new technology designed to save them valuable benefits administration time.1
Benefits bundling: Bundling benefits can streamline benefits administration while saving costs. But only one in five small business owners bundle their benefits under one carrier, according to the research. Despite that, many small business owners see bundling as an opportunity to control costs: 75% of small business owners surveyed said better prices were among their top reasons for their interest in bundling, and 46% said price was their number one reason.1
Voluntary benefits: Voluntary benefits — like accident, critical illness, hospital indemnity, dental, vision — can supplement traditional coverages, offering support to help with everyday expenses without high upfront costs. Employees also can pick which benefits make the most sense for their lifestyle. These coverages can help attract and retain talent by showing employees that their well-being is a priority, giving them the flexibility and options to choose the benefits that match their needs.
Financial wellness tools: Financial wellness tools also can help small businesses differentiate themselves by supporting their employees’ ability to save for retirement and be financially secure. According to Lincoln’s study, only 36% actually offer wellness programs, with another 34% considering it. Small business owners also identified a few key programs as differentiators, including 53% pointing to debt management programs and 44% calling out education on investing.1
InsurTech: Another opportunity is insurance technology. InsurTech solutions can ease employers’ enrollment experience and administration, which otherwise can be a manual, time consuming process that takes away valuable time that small business owners need to spend on their core business. Using InsurTech can help drive efficiency and accuracy, eliminate manual tasks, and reduce time spent on benefits.
For more information about Lincoln Financial and its offerings for small businesses, visit lincolnfinancial.com/SmallBusiness.
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