Lincoln Financial Study Finds Employees’ Health, Finances, and Well-Being Are Top Priorities for Today’s Small Business Owners
As National Small Business Week approaches, Lincoln Financial (NYSE: LNC) has released new research highlighting the priorities and challenges faced by small business owners in the United States regarding workplace benefits. The study, surveying over 550 small business owners with employee counts ranging from 5 to 499, underscores a growing recognition among employers that investing in their employees’ health, financial security, and overall well-being is essential for business success.
Key Findings from the Study
The research reveals that small business owners want to do more to support their workforce, especially in offering benefits related to covering medical expenses, promoting financial security, and helping employees save for retirement. Specifically, 46% of respondents expressed a desire to offer additional assistance with medical costs, while 55% aimed to enhance financial security and retirement savings options for their employees.
However, the study also uncovered a knowledge gap. Only 63% of small business owners reported being very familiar with benefits related to medical expense coverage, and just 45% felt similarly about financial security offerings. Due to this limited familiarity, many employers tend to focus on traditional, “must-have” benefits, typically offering an average of seven out of a possible 22 non-retirement benefit options. This conservative approach means that valuable supplemental or voluntary benefits — such as accident insurance, critical illness coverage, and hospital indemnity plans — are often overlooked, despite being potential tools for attracting and retaining talent.
For example, while three-quarters of small business owners consider medical expense support essential, 56% do not provide accident insurance, and 65% do not offer critical illness or hospital indemnity benefits.
The Value of Trusted Partnerships
The study emphasizes the importance of small business owners partnering with trusted brokers, carriers, or financial professionals who can guide them through the complex landscape of employee benefits offerings. Currently, just over half (54%) of small business owners work with benefits consultants. Given that nearly three-quarters (72%) annually review their benefits packages, having expert guidance can both streamline the process and tailor offerings to align with the business’s strategy and employee needs.
Jimmy Reid, Executive Vice President and President of Workplace Solutions at Lincoln Financial, commented, “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, we can serve as consultative partners to offer the right products and services to improve financial well-being and transform benefits challenges into opportunities.”
Opportunities to Enhance Benefits Programs
The study highlights several promising strategies that small business owners can leverage to maximize employee benefit value:
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Benefits Bundling: Combining multiple benefit offerings under one carrier can simplify administration and reduce costs. Yet, only 20% of small business owners currently bundle their benefits. Among those interested in bundling, 75% cited better pricing as a motivating factor.
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Voluntary Benefits: Supplemental benefits such as dental, vision, accident, critical illness, and hospital indemnity coverage provide employees with customizable options that fit their lifestyles without imposing high upfront costs on employers. These options can also serve as talent differentiators.
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Financial Wellness Tools: Tools aimed at supporting employees’ financial well-being, such as debt management programs and investment education, can help small businesses stand out. However, only 36% of small employers currently offer wellness programs, with 34% considering them. Over half (53%) recognize debt management, and 44% acknowledge investment education as particularly valuable.
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Insurance Technology (InsurTech): Leveraging technology solutions can ease benefits enrollment and administration, reducing the time and manual effort small businesses spend managing benefits and enabling them to focus more on core operations. InsurTech can improve efficiency, accuracy, and overall employee engagement with benefits.
Continuing Commitment to Small Businesses
Lincoln Financial continues to support small business owners in navigating the evolving benefits landscape by offering innovative products, services, and technology designed to make benefits administration straightforward and affordable. More information about Lincoln Financial’s small business offerings is available at lincolnfinancial.com/SmallBusiness.
About Lincoln Financial
Lincoln Financial is a leading provider of financial services, helping approximately 17 million customers plan confidently for their financial futures. The company offers products and services across annuities, life insurance, group protection, and retirement plan services. Headquartered in Radnor, Pennsylvania, Lincoln Financial is the marketing name for Lincoln National Corporation (NYSE: LNC) and its affiliates. For further details, visit LincolnFinancial.com.
Contact:
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This article was developed from a Lincoln Financial press release issued via Business Wire in celebration of National Small Business Week 2025.