Lincoln Financial Study Reveals Small Business Owners Prioritize Employees’ Health, Financial Security, and Well-Being
RADNOR, Pa.—In recognition of National Small Business Week, Lincoln Financial (NYSE: LNC) has unveiled new research highlighting that today’s small business owners place their employees’ health, finances, and overall well-being at the top of their priority list. The study surveyed over 550 U.S. small business owners managing between 5 and 499 employees, uncovering insights into their experiences with workplace benefits selection and the challenges they face in benefits communication and administration.
Investing in Employee Well-Being to Drive Business Success
The research shows that small business owners are eager to invest more in workplace solutions that support their employees’ health and financial security. They recognize that offering the right mix of employee benefits, retirement plan services, and well-being solutions can be crucial for attracting and retaining qualified talent—a key challenge in today’s competitive market. However, many owners lack sufficient understanding or external partnerships to fully leverage their benefits offerings as strategic business solutions.
Key Findings on Benefits Awareness and Offerings
- Desire to Expand Benefits: Nearly half (46%) of small business owners want to better help employees cover medical expenses, while 55% wish to support financial security and retirement savings.
- Limited Familiarity: Only 63% of owners felt very familiar with options for covering medical expenses, and just 45% were knowledgeable about offerings that increase employees’ financial security.
- Narrow Benefit Range Offered: On average, small businesses provide only seven of the 22 non-retirement benefits listed in the study, focusing mostly on standard “must-have” options.
- Missed Opportunities: Despite 75% classifying assistance with medical expenses as a must-have, a majority do not offer voluntary benefits like accident insurance (56% do not offer), critical illness coverage (65%), or hospital indemnity plans (65%).
The Value of Trusted Partnerships and Innovative Solutions
Lincoln Financial underscores the importance of small business owners partnering with brokers, carriers, or financial professionals to gain guidance on assembling the right benefits mix. These partnerships can help translate employee benefits into competitive advantages that improve well-being and business outcomes.
Jimmy Reid, Executive Vice President and President of Workplace Solutions at Lincoln Financial, stated, “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 their challenges, we can serve as consultative partners offering solutions that inspire financial well-being and transform challenges into opportunities.”
Notably, just over half (54%) of surveyed small business owners currently work with a benefits broker or consultant, while 72% review their benefits at least annually, highlighting openness to professional guidance.
Strategies to Support Small Businesses and Employees
The research identifies several strategies that can help small businesses streamline benefits administration, control costs, and enhance employee support:
- Benefits Bundling: Though only 20% currently bundle benefits under a single carrier, 75% are interested in better pricing through bundling, with 46% citing cost as their top motivator.
- Voluntary Benefits: Supplemental options such as accident, critical illness, hospital indemnity, dental, and vision insurance offer employees flexibility to choose benefits tailored to their lifestyles without large upfront employer costs.
- Financial Wellness Tools: While only 36% currently provide wellness programs, 34% are considering them. Programs like debt management (valued by 53% of owners) and investment education (44%) are seen as differentiators that enhance employees’ financial security.
- Insurance Technology (InsurTech): Leveraging technology solutions can simplify benefits enrollment and administration, reducing manual work and enabling small business owners to concentrate more on their core operations.
About Lincoln Financial
Lincoln Financial helps millions confidently plan for a successful financial future through its annuities, life insurance, group protection, and retirement plan services. As of December 31, 2024, the company manages $321 billion in account balances and serves approximately 17 million customers. Headquartered in Radnor, Pennsylvania, Lincoln Financial offers a broad spectrum of products designed to meet the needs of individuals and businesses alike. To learn more about their small business offerings, visit lincolnfinancial.com/SmallBusiness.
Contact: [email protected]
Industry: Finance | Professional Services | Small Business | Insurance | Human Resources
Source: Lincoln Financial, Small Business Owners Survey by Greenwald Research, October-December 2024
This study highlights the evolving priorities among small business owners and underscores the growing role of tailored employee benefits and financial wellness solutions in fostering both workforce satisfaction and business success. As National Small Business Week spotlights these enterprises, Lincoln Financial continues to provide trusted resources and innovative tools to support their growth and resilience.