Lincoln Financial Study Highlights Health, Finances, and Employee Well-Being as Priorities for Small Business Owners

RADNOR, Pa. – In an effort to underscore the importance of small businesses, Lincoln Financial (NYSE: LNC) has released findings from a recent study highlighting the motivations and challenges faced by small business owners. This research, conducted in anticipation of National Small Business Week on May 4-10, reveals that health, financial wellness, and overall employee well-being are top priorities for today’s small business proprietors. The study surveyed over 550 U.S. small business owners employing between 5 to 499 individuals.

A Call for Increased Investment in Employee Benefits

According to the findings, the struggling economy and retaining quality employees among their biggest challenges, small business owners are eager to enhance their employee benefit programs. A significant portion of respondents expressed a desire to provide better support for their employees’ medical expenses (46%) and financial security (55%). Furthermore, over half of those surveyed indicated that they want to help their employees save for retirement (55%).

Despite the evident commitment to improving employee benefits, a gap in knowledge about available solutions persists. For instance, only 63% of small business owners expressed a strong familiarity with medical expense coverage options, while only 45% reported being knowledgeable about financial security offerings. This lack of understanding means that many businesses are defaulting to traditional benefits while overlooking potential innovations that could better support their workforce.

Missed Opportunities in Benefits Offerings

The study indicates that small business owners are typically aware of only a limited array of benefits, often focusing on standard offerings rather than exploring additional voluntary benefits. For example, while three-quarters of respondents view assistance with medical expenses as critical, a surprising number do not provide the corresponding coverage options like accident, critical illness, and hospital indemnity insurance. Specifically, 56% do not offer accident insurance, and 65% lack critical illness and hospital indemnity coverage.

These omissions create missed opportunities for small business owners to not only support their employees adequately but also differentiate their companies from competitors in an increasingly competitive job market.

The Role of Trusted Advisors in Benefits Education

Given the challenges and complexities surrounding employee benefits, the study emphasizes the importance of partnering with knowledgeable brokers or financial professionals. Currently, only 54% of small business owners utilize a benefits broker or consultant, despite the potential advantages these partnerships can offer. With nearly three out of four small businesses reviewing their benefits at least annually, having an experienced partner can streamline decision-making processes, saving time that can be redirected to other operational aspects.

The Advantages of Bundling, Voluntary Benefits, and Wellness Programs

The Lincoln Financial study highlights several strategies that small business owners can consider to enhance their benefits offerings:

1. Benefits Bundling: About 75% of small business owners expressed interest in bundling benefits to control costs; however, only one in five actually does so. Effective bundling can lead to savings and simplified administration.

2. Voluntary Benefits: Options such as accident insurance, critical illness coverage, and dental and vision care not only help employees cover unexpected expenses but also allow for personalized choices that align with their unique needs.

3. Financial Wellness Tools: Providing tools that support financial literacy and retirement planning can significantly improve employee satisfaction. Yet, only 36% of respondents currently offer wellness programs, with key programs like debt management and investment education remaining underutilized.

4. InsurTech Innovations: By adopting new insurance technologies, small businesses can enhance the enrollment process and lessen administrative burdens caused by manual tasks, allowing owners to focus on driving their businesses.

Conclusion

The insights derived from the Lincoln Financial study underline a crucial need for small business owners to rethink and expand their employee benefits offerings. By prioritizing health, financial wellness, and employee support through increased educational initiatives and strategic partnerships, these businesses can not only enhance employee satisfaction and retention but also pave the way for their own growth and success in a competitive marketplace.

For more information about Lincoln Financial services for small businesses, visit lincolnfinancial.com/SmallBusiness.

About Lincoln Financial
Lincoln Financial is dedicated to helping individuals prepare for a successful financial future. With approximately 17 million customers relying on its services across annuities, life insurance, group protection, and retirement plan services, Lincoln Financial stands firm with a commitment to ensuring client satisfaction and helping small businesses succeed.

For further details, inquiries can be directed to their media contact at [email protected].

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