Lincoln Financial Study Reveals Employees’ Health, Finances, and Well-Being Are Top Priorities for Today’s Small Business Owners
RADNOR, Pa. – As National Small Business Week approaches (May 4–10, 2025), Lincoln Financial (NYSE: LNC) has released new research highlighting the evolving priorities and challenges faced by small business owners across the United States regarding workplace benefits. The study, surveying over 550 small business owners with 5 to 499 employees, underscores the growing emphasis on employee health, financial security, and overall well-being as critical factors driving benefits decisions.
Investing in Employee Well-Being to Drive Business Success
Lincoln Financial’s comprehensive research reveals that today’s small business owners are eager to enhance workplace solutions that support their employees’ health and finances. Many recognize that offering the right mix of benefits — including retirement plan services and well-being programs — plays a pivotal role in attracting and retaining quality talent, a major challenge in the current labor market.
However, the study also found that many small business owners lack the familiarity and external partnerships necessary to fully capitalize on the potential of workplace benefits. While 46% expressed interest in helping employees cover medical expenses, and 55% prioritized financial security and retirement savings support, there remains a gap between their intentions and the benefits currently offered.
Benefits Awareness and Utilization Gaps Exist Among Owners
Small business owners’ moderate familiarity with diverse benefits options limits their ability to expand offerings effectively. Only 63% reported being very familiar with medical expense coverage options, and just 45% understood benefits aimed at boosting employees’ financial security. On average, businesses provided about seven of 22 potential non-retirement benefits, focusing primarily on standard “must-have” plans.
This limited scope often leads to underutilization of voluntary benefits such as accident insurance, critical illness coverage, and hospital indemnity plans that could significantly assist employees and help businesses differentiate themselves. Notably, while three-quarters of owners regard medical expense assistance as essential, more than half do not offer these supplementary coverages.
The Value of Trusted Partnerships and Strategic Guidance
Lincoln Financial emphasizes the importance of small business owners partnering with trusted brokers, carriers, or financial professionals who can navigate the complexities of benefits planning. According to Jimmy Reid, Executive Vice President and President of Workplace Solutions at Lincoln Financial, “We work with small businesses every day, providing services and products centered on ease, access, and affordability. By understanding the challenges they face, we act as consultative partners to deliver tailored products and services that promote financial well-being and transform benefits challenges into growth opportunities.”
The research shows that 54% of small business owners currently collaborate with benefits brokers or consultants. Given that 72% review their benefit packages at least annually, maintaining a trusted advisor who understands both business strategies and employee needs can save owners valuable time and improve benefits effectiveness.
Emerging Trends: Benefits Bundling, Voluntary Coverage, Financial Wellness, and InsurTech
The study identified several strategic approaches that can help small businesses optimize benefits administration while enhancing employee support:
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Benefits Bundling: Only 20% of small businesses bundle benefits under a single carrier despite 75% viewing better pricing as a key incentive. Bundling can simplify administration and reduce costs.
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Voluntary Benefits: Offerings such as accident, critical illness, hospital indemnity, dental, and vision insurance provide supplemental coverage that employees can customize based on their lifestyles. These plans can enhance recruitment and retention by signaling commitment to employee well-being.
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Financial Wellness Tools: Although only 36% of surveyed small businesses currently provide financial wellness programs, tools such as debt management and investment education are recognized as differentiators by over half of the respondents.
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Insurance Technology (InsurTech): Leveraging technology solutions can streamline enrollment and benefits management, reducing manual tasks and freeing up time for business owners to focus on core operations.
About Lincoln Financial
Headquartered in Radnor, Pennsylvania, Lincoln Financial serves approximately 17 million customers across annuities, life insurance, group protection, and retirement plan services. As of December 31, 2024, the company managed $321 billion in account balances net of reinsurance. Lincoln Financial is a market leader committed to empowering individuals and businesses to plan confidently for a successful financial future.
For more details on Lincoln Financial’s small business offerings, visit lincolnfinancial.com/SmallBusiness.
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This article is published by Smart Money Mindset and is based on the Lincoln Financial study released in conjunction with National Small Business Week 2025.