Lincoln Financial Study Reveals Health, Finances, and Well-Being as Top Priorities for Small Business Owners
Research highlights growing focus on employee benefits to attract talent and drive business success
RADNOR, Pa., June 2025 — As National Small Business Week approaches, May 4–10, Lincoln Financial (NYSE: LNC) has released new research shedding light on the evolving priorities of small business owners regarding employee benefits. The study, surveying over 550 U.S. small business owners with 5 to 499 employees, reveals that health, financial security, and overall well-being are at the forefront of small business owners’ minds when selecting and communicating workplace benefits.
Investing in Employee Health and Financial Security
The research found that small business owners increasingly recognize the value of offering workplace solutions that support their employees’ health and financial well-being. With competition for skilled talent intensifying, employees’ benefits are crucial tools for attracting and retaining quality workers — one of the biggest challenges faced by small businesses today.
Key findings from the survey include:
- 46% of small business owners want to help employees cover medical expenses.
- 55% seek to enhance employees’ financial security.
- 55% aim to support employees in saving for retirement.
Despite these ambitions, many small business owners admit to limited familiarity with the full range of benefits options. Only 63% reported being very familiar with offerings related to covering medical expenses, and just 45% were knowledgeable about benefits designed to improve financial security. Consequently, many remain focused on traditional “must-have” benefits, typically offering only seven out of 22 identified non-retirement benefits.
Potential of Voluntary Benefits and Bundling
The study highlights a missed opportunity in voluntary benefits such as accident insurance, critical illness coverage, and hospital indemnity — popular options that can help employees manage everyday expenses with minimal upfront costs. For instance, while three-quarters of small business owners considered medical expense coverage essential, over half currently do not offer accident insurance or critical illness plans.
Additionally, benefits bundling emerges as a cost-saving and administrative efficiency strategy underutilized by small businesses. Only around 20% bundle their benefits through a single carrier, despite 75% recognizing better pricing as a significant motivation to do so.
The Importance of Trusted Partnerships and Technology
Partnering with experienced brokers, carriers, or financial professionals can enable small business owners to overcome knowledge gaps. Such relationships provide expert guidance on selecting the right benefits mix, leveraging technology solutions, and optimizing costs.
Currently, just 54% of surveyed small business owners work with benefits brokers or consultants. Given that nearly 72% of small businesses review their benefits offerings at least annually, access to trusted partners can save valuable time and align benefits with broader business and employee engagement goals.
Financial wellness tools are another differentiator, yet only 36% of small businesses offer such programs today, with more considering them. Programs like debt management workshops and investment education notably resonate with small business owners as effective ways to boost employee financial health.
Emerging insurance technology (InsurTech) further offers promise by simplifying benefits enrollment and administration, reducing time-consuming manual tasks, and improving accuracy — critical considerations for small business owners juggling numerous responsibilities.
Commitment to Supporting Small Businesses
Jimmy Reid, Executive Vice President and President of Workplace Solutions at Lincoln Financial, emphasized the company’s dedication to small businesses:
"We work with small businesses every day, providing services and products centered on ease, access, and affordability. We’re committed to helping them succeed. By understanding the challenges small business owners face, we can be a consultative partner offering the right products and services to inspire financial well-being and transform benefits challenges into opportunities."
For additional information on Lincoln Financial’s small business solutions, visit lincolnfinancial.com/SmallBusiness.
About Lincoln Financial
Lincoln Financial Group helps millions of customers confidently plan for their financial futures by offering a broad range of services in annuities, life insurance, group protection, and retirement plan services. As of December 31, 2024, the company had approximately 17 million customers and managed $321 billion in assets. Headquartered in Radnor, Pennsylvania, Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates.
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Industry: Finance | Professional Services | Small Business | Insurance | Human Resources
This article is published by Smart Money Mindset, providing insights into small business trends and financial wellness.