In celebration of National Small Business Week, Lincoln Financial is sharing research on workplace benefits preferences among small business owners across the U.S., highlighting their growing focus on employee health and financial well-being.

The study surveyed over 550 small business owners (5-499 employees) and revealed that these owners see workplace benefits as crucial tools to attract and retain quality talent while managing benefit costs. However, many lack the knowledge or partnerships needed to maximize these offerings effectively.

Key findings include a strong desire to expand benefits that help employees cover medical expenses (46%), improve financial security (55%), and save for retirement (55%). Yet, only 63% of owners feel very familiar with medical coverage options and just 45% with financial security benefits. This limited familiarity often results in small business owners focusing on standard benefits, averaging only seven out of 22 possible non-retirement options.

As a consequence, many overlook voluntary benefits such as accident insurance, critical illness, and hospital indemnity, despite these being valued by employees. For example, while 75% see medical expense assistance as essential, over half do not offer these supplementary coverages.

Lincoln emphasizes the value of partnering with trusted brokers or financial professionals who can guide small businesses in selecting the right benefits mix, technology, and services to enhance employee well-being and business success.

Jimmy Reid, EVP and President of Workplace Solutions at Lincoln Financial, stated, “By understanding small business challenges, we help deliver products and services that promote financial well-being and transform benefits challenges into opportunities.”

The study also shows that 54% of small business owners currently work with benefits brokers or consultants, and 72% review their benefits at least annually. Trusted partners help save time and tailor offerings to fit business strategies and employee needs.

Key Benefits Strategies for Small Businesses

  • Benefits Bundling: Combining benefits under one carrier can reduce administrative burdens and costs. Although only 20% bundle currently, 75% are interested due to better pricing opportunities.
  • Voluntary Benefits: Options like accident, critical illness, dental, and vision insurance supplement core benefits, allowing employees flexibility to choose what fits their lifestyle and enhancing talent attraction and retention.
  • Financial Wellness Tools: Tools supporting retirement savings and financial security are underutilized, with only 36% offering wellness programs. Popular offerings include debt management (53%) and investing education (44%).
  • Insurance Technology (InsurTech): These solutions streamline enrollment and benefits administration, saving small business owners valuable time to focus on their core operations.

Small business owners are encouraged to explore modern benefits solutions and trusted partnerships to support employee well-being while driving business growth and success.

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