Lincoln Financial Study Reveals Small Business Owners Prioritize Employees’ Health, Financial Security, and Well-Being
As National Small Business Week approaches from May 4 to 10, Lincoln Financial (NYSE: LNC) has released compelling new research highlighting the priorities of U.S. small business owners regarding employee benefits. The study, conducted with over 550 small business owners representing companies with 5 to 499 employees, reveals that enhancing employee health, financial security, and overall well-being are top concerns for today’s small businesses.
Investing in Employee Benefits as a Growth Strategy
Lincoln Financial’s research shows that while small business owners recognize the critical role of workplace benefits in attracting and retaining qualified talent, many face challenges balancing benefit costs and understanding the full suite of offerings available. The study found that owners see benefits related to medical expenses, financial security, and retirement savings as particularly important, with 46% wanting to further aid employees in covering medical costs, and 55% seeking to improve financial stability and retirement preparedness for their workforce.
However, familiarity gaps persist: just 63% of respondents reported being very familiar with benefits addressing medical expenses, and only 45% felt knowledgeable about options supporting financial security. This limited awareness often results in small businesses offering a narrow range of benefits—on average seven out of 22 possible non-retirement benefits—and overlooking voluntary benefits such as accident insurance, critical illness coverage, and hospital indemnity plans that could enhance employee support and differentiate their companies from competitors.
The Role of Trusted Partners and Innovative Solutions
Partnering with benefits brokers, carriers, or financial professionals emerges as a key pathway for small business owners to optimize their offerings. Currently, 54% of surveyed businesses work with benefit consultants, and 72% regularly review their benefits at least annually. Engaging with experienced partners can help small businesses navigate complex benefit decisions, bundle cost-saving options, and leverage technology that streamlines benefits administration.
Jimmy Reid, Executive Vice President and President of Workplace Solutions at Lincoln Financial, emphasizes the company’s commitment: “We work with small businesses every day, providing services and products centered on ease, access, and affordability. By understanding their challenges, we can offer the right products and services to inspire financial well-being and transform benefits challenges into opportunities.”
Key Opportunities to Enhance Employee Benefits
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Benefits Bundling: Despite its potential to simplify administration and reduce costs, only 20% of small business owners bundle benefits under a single carrier. The research indicates that 75% view better pricing as a primary motivation for bundling, with 46% ranking cost control as their top reason.
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Voluntary Benefits: These optional coverages, including accident, critical illness, hospital indemnity, dental, and vision insurance, provide employees with flexible choices that complement traditional plans. These benefits can ease everyday expenses and demonstrate employer commitment to employee well-being.
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Financial Wellness Tools: Supporting employees’ financial education and security can make a significant difference. Although only 36% of small businesses currently offer wellness programs, 34% are considering implementation. Programs focused on debt management and investing education are seen as particularly effective differentiators.
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InsurTech Solutions: Emerging insurance technologies can streamline enrollment and administration, reducing manual tasks and freeing small business owners to focus on core business operations. This technology fosters accuracy and efficiency in benefits management.
About Lincoln Financial
Headquartered in Radnor, Pennsylvania, Lincoln Financial provides financial guidance and solutions across annuities, life insurance, group protection, and retirement plan services to approximately 17 million customers. As of December 31, 2024, Lincoln Financial held $321 billion in end-of-period account balances. The company operates under the marketing name Lincoln National Corporation (NYSE: LNC) and prides itself on being a trusted partner for individuals and businesses aiming to achieve financial security.
For detailed findings from the study and information on Lincoln Financial’s small business offerings, visit lincolnfinancial.com/SmallBusiness.
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Company: Lincoln Financial
Industry: Finance, Insurance, Human Resources, Small Business
This study underscores the evolving priorities of small business owners who view comprehensive, well-communicated employee benefits as an essential component of business success and employee satisfaction. With the proper guidance and solutions, small businesses can better support their workforce’s health and financial well-being while enhancing their own competitive edge in today’s dynamic labor market.