Lincoln Financial Study Reveals Health, Financial Security, and Well-Being as Primary Concerns for Today’s Small Business Owners
Research highlights the growing importance of workplace benefits in attracting and retaining talent
RADNOR, Pa. — In recognition of National Small Business Week, May 4 – 10, Lincoln Financial (NYSE: LNC) has unveiled new research that sheds light on the priorities of U.S. small business owners regarding employee benefits. Surveying over 550 small business owners with 5 to 499 employees, the study highlights that health, financial security, and overall employee well-being top the list of concerns for these owners.
Prioritizing Employee Health and Financial Wellness
The study reveals that many small business owners aspire to enhance their workplace benefits, aiming to help employees cover medical expenses, improve financial stability, and save for retirement. Specifically, 46% of respondents want to assist employees in covering medical costs, while 55% are focused on bolstering financial security and retirement savings.
Despite these intentions, a gap exists in small business owners’ familiarity with available benefits. Approximately 63% report being very familiar with options for covering medical expenses, while only 45% are well-versed in financial security offerings. This knowledge gap often limits the scope of benefits they provide, with owners typically offering seven out of 22 possible non-retirement benefits, focusing predominantly on traditional “must-have” plans.
Underutilized Benefits Could Make a Significant Impact
The research underscores underutilization of voluntary benefits such as accident insurance, critical illness coverage, and hospital indemnity — despite their potential to help employees manage healthcare costs. For example, while three-quarters of small business owners rate assistance with medical expenses as a critical benefit, 56% do not offer accident insurance, and 65% for both critical illness and hospital indemnity insurance.
Lincoln Financial emphasizes the role of trusted brokers and financial professionals in bridging this gap. Collaborating with experts can help small businesses tailor benefits packages that not only support employee well-being but also enhance talent attraction and retention.
The Value of Partnership and Benefits Bundling
Just over half (54%) of small business owners currently work with a benefits broker or consultant. With 72% reviewing their benefits annually, engaging a knowledgeable partner is vital for aligning offerings with business strategy while saving owners precious time.
The study also spotlights benefits bundling as an effective strategy to reduce costs and simplify administration. However, only 20% of surveyed owners currently bundle benefits under a single carrier. Among those interested in bundling, 75% cite better pricing as a top advantage, with 46% ranking price as their primary motivator.
Financial Wellness and Insurance Technology: Emerging Opportunities
Financial wellness programs remain an underdeveloped area, with only 36% of businesses offering such initiatives and 34% considering them. Programs focused on debt management and investment education are viewed as differentiators, valued by over half of respondents.
InsurTech solutions also offer promise by streamlining enrollment and benefits administration, reducing manual paperwork, and allowing small business owners to focus more on core business activities. These technological advancements can boost efficiency and accuracy in managing employee benefits.
Lincoln Financial’s Commitment to Small 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 and President of Workplace Solutions at Lincoln Financial. “We’re committed to helping them succeed. By understanding their challenges, we can offer the right products and services that inspire financial well-being and turn benefits challenges into opportunities.”
For more information, small business owners can visit lincolnfinancial.com/SmallBusiness.
About Lincoln Financial
Lincoln Financial helps millions of customers confidently plan for successful financial futures through its offerings in annuities, life insurance, group protection, and retirement plan services. As of December 31, 2024, the company manages $321 billion in accounts and serves approximately 17 million customers. Headquartered in Radnor, Pennsylvania, Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. Learn more at LincolnFinancial.com.
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This article is published by Smart Money Mindset.