RADNOR, PA — New research from Lincoln Financial Group examines the critical role workplace benefits play in the success of small businesses while identifying challenges and opportunities in the selection and management of employee offerings. The study, which surveyed more than 550 small business owners with 5-499 employees, highlights how the right benefits strategy can help attract and retain talent while addressing financial and health-related needs for employees and employers alike.
According to the findings, 55% of small business owners aim to enhance financial security and retirement savings for their employees, with 46% prioritizing support for medical expenses. Yet, many owners struggle with limited familiarity around available options. Only 63% said they were highly familiar with medical expense benefits, and fewer than half had a strong understanding of financial wellness offerings.
Despite these challenges, over 70% of businesses review their benefits annually. However, many miss opportunities to implement voluntary benefits, bundling, or financial wellness tools, which Lincoln Financial identifies as cost-effective solutions to employee well-being. Notably, just one in five businesses bundle their benefits with a single carrier, even though three-quarters view bundling as a cost-saving strategy.
“We work with small businesses every day, providing services and products centered on ease, access, and affordability,” said Jimmy Reid, executive vice president and president of Workplace Solutions at Lincoln Financial. “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.”
The research also highlights the potential of InsurTech solutions to simplify benefits administration and reduce manual processes, freeing up small business owners to devote more time to their operations. Additionally, voluntary benefits like accident, dental, and critical illness insurance offer flexible and targeted support to employees without substantial cost increases.
With just over half of respondents working with a benefits broker or consultant, Lincoln Financial emphasizes the added value of partnering with trusted professionals. These partnerships can guide small business owners through a complex system, helping them elevate their employee benefits offerings while achieving sustained growth.
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