Lincoln Financial Study Reveals Health, Finances, and Employee Well-Being as Key Priorities for Small Business Owners
RADNOR, Pa. – As National Small Business Week approaches from May 4 to 10, 2025, Lincoln Financial Group (NYSE: LNC) has released significant findings from its recent study involving over 550 small business owners across the United States. The research highlights employees’ health, financial stability, and overall well-being as the primary focus areas for today’s small business proprietors as they navigate the complexities of workforce benefits.
Key Findings from the Research
The study reveals that small business owners recognize the critical role that employee benefits play in attracting and retaining talented staff, a major challenge for many in the sector. However, most lack the sufficient knowledge and resources to optimize these benefits effectively. Specifically, the findings indicate that 46% of small business owners wish to provide better coverage for medical expenses, while 55% aim to enhance financial security and retirement saving options for their employees.
Despite their intentions, many small business proprietors exhibit a limited understanding of the available benefits. For instance, only 63% are very familiar with medical expense coverage options, and just 45% have a good grasp of benefits aimed at improving employees’ financial security. Consequently, they often focus on standard offerings, providing, on average, only seven out of a potential 22 non-retirement benefits identified in the study.
The implications are clear: small business owners frequently overlook voluntary benefits, which can offer substantial support to employees while differentiating their businesses from competitors.
Understanding the Gaps in Employee Benefits
The survey uncovered a significant disparity between the business owners’ intent and actual provision of benefits. While 75% consider assisting with medical costs a necessity, only 56% offer accident insurance, and a striking 65% do not include critical illness or hospital indemnity coverage. This inconsistency suggests that a lack of awareness and guidance may be hindering business owners from taking full advantage of available benefits that can enhance employee satisfaction and loyalty.
The Role of Financial Advisors and Brokers
According to the findings, only 54% of small business owners engage with a benefits broker or consultant. This limited partnership can create challenges, as nearly three-quarters of small business owners (72%) review their benefit offerings annually. Establishing a relationship with a knowledgeable broker can help these entrepreneurs navigate the nuances of employee benefits, saving them valuable time and resources that can be redirected toward core business operations.
Jimmy Reid, Executive Vice President and President of Workplace Solutions at Lincoln Financial, emphasizes the importance of collaboration: "We work with small businesses every day, providing services and products centered on ease, access, and affordability. By understanding the challenges small business owners face today, we can serve as a consultative partner to offer the right products and services to inspire financial well-being."
Exploring Innovative Solutions
The study shines a light on various solutions small businesses can adopt to improve employee benefits without increasing administrative burdens.
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Benefits Bundling: Bundling benefits can optimize administrative processes and control costs, yet only 20% of small business owners currently utilize this strategy. Cost savings remain a significant motivation, with 75% expressing interest in better pricing through bundling.
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Voluntary Benefits: These additional coverages—such as accident, critical illness, and hospital indemnity insurance—allow employees flexibility in choosing what best suits their needs without imposing high upfront costs on employers.
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Financial Wellness Programs: Despite only 36% of respondents implementing wellness programs, a considerable 34% are interested. Business owners highlighted debt management and investment education as vital differentiators.
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InsurTech Solutions: The use of technology to manage benefits can significantly enhance efficiency, reducing the time spent on administrative tasks and allowing business owners to focus on growth and development.
Conclusion
As small business owners strive to balance costs while enhancing employee offerings, understanding these key insights and implementing appropriate benefits strategies can contribute to a more satisfied and loyal workforce. For more information on Lincoln Financial and its offerings that cater to small businesses, visit lincolnfinancial.com/SmallBusiness.
About Lincoln Financial Group
Lincoln Financial Group helps individuals confidently plan for their vision of a successful financial future. With approximately 17 million clients benefiting from its services across annuities, life insurance, group protection, and retirement planning, Lincoln Financial continues to establish itself as a leading partner for small businesses and their workforce needs.