Competitive advantages are a top priority for small business owners

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The impact of the pandemic over the past two years has prompted businesses of all sizes to reevaluate their employee benefits, and small businesses are no exception.

In fact, nearly all small business owners surveyed (93%) have reassessed their strategy and plan to make changes to their business, ranging from increasing their marketing efforts to hiring new workers, according to the report. Survey of Small Business Owners from Lincoln Financial Group.

Additionally, 80% of small business owners consider benefits a top strategic priority because benefits play a critical role in boosting employee morale and well-being, and in attracting and retaining top talent, according to the report. ‘investigation. Among the changes, 28% of small business owners said they were providing better benefits in response to the pandemic, such as the addition:

  • life insurance (30%);
  • a retirement contribution (27%);
  • a retirement account (27%);
  • financial wellness program (27%); and
  • accident, critical illness, hospital allowance, vision insurance and dental insurance (over 25% each).

“Small business owners understand how essential a strong benefits package is to attracting and retaining top talent in today’s competitive marketplace,” said Ralph Ferraro, senior vice president of Workplace Solutions Product and Underwriting at Lincoln Financial. “And they’re looking to provide providers with innovative, simple solutions that meet the needs of their employees and make it easier for owners to focus on running their business day-to-day.”

Eliminate barriers

To that end, small business owners have a variety of concerns about choosing the benefits that best suit their needs, ranging from evaluating the costs and benefits of the plans (51%) to being overwhelmed by the variety and number market advantage (40%). and administrative (28%), reveals the survey.

Nearly three-quarters (72%) say multi-employer benefits solutions are attractive for cost reduction, access to more benefits and ease of use. As such, solutions such as employer-sponsored group plans (PEPs) could help, as these products aim to help small businesses offer a retirement plan with fewer administrative and fiduciary responsibilities, observes Lincoln Financial.

Succession planning

When it comes to topics small business owners discuss with finance professionals, the survey found that business growth and strategy (58%) topped the list, but far fewer discussed business (31%) and protection against the loss of key people (22%). With nearly two-thirds of small business owners discussing their business with their finance professional at least quarterly (64%), there is room to close these gaps, the study notes.

“Whether protecting an owner’s family from problems arising from an unexpected critical illness or premature death, or providing security if a business loses a key employee, insurance products -life can help small business owners mitigate significant business risks, protecting their personal and business interests,” suggests Andy Bucklee, Senior Vice President of Employee Benefits and Benefits Distribution.

Survey responses were collected November 8-21, 2021 from 313 small business owners using the Qualtrics survey platform. Small business owners were defined as having between 10 and 100 employees and revenues between $250,000 and $10 million. In addition, companies had to be operational for at least two years and be owned by private/non-governmental interests.

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