During National Small Business Week, Lincoln Financial Group identifies solutions for some of the challenges small business owners face
RADNOR, Pa., May 3, 2017 /BusinessWire/ — Lincoln Financial Group (NYSE: LNC) announced its support of National Small Business Week, an annual effort to recognize the contributions of America’s entrepreneurs and small business owners.
As part of this, Lincoln has identified some of the top concerns small business owners face — including providing for employees and protecting their families — and the solutions that can help them address those challenges.
“Every business wants top talent, but research shows that small business owners see attracting and retaining high-performing employees as their number one pain point1,” said Bob Risk, senior vice president of Group Benefits Distribution at Lincoln Financial. “Many small business owners face competition from larger businesses that can offer more robust benefits packages. Fortunately there are cost-effective options in the marketplace that can help small business owners attract employees and boost retention and satisfaction.”
Start Simple: Meet Employees’ Benefit Needs
According to Lincoln Financial’s recent research around employee benefits, 35 percent of employees at small businesses say their current benefits — outside of medical insurance — do not meet their needs. This compares to a much lower 20 percent2 when looking at the total employed population. While small business owners may have limited resources and funds to allocate to employee benefits, there are cost-effective options they can leverage.
Equally important is focusing on the retirement needs of employees. Small employers can start by offering a retirement savings plan, which 81 percent of small business employees expect, but only 58 percent have access to through their employer3. These plans are even more important for Millennials and Gen-Xers, who believe an employer-sponsored retirement plan will be their top source of income in retirement4. For other generations, considerations of longevity, the uncertainty of social security and the current market have placed an increased focus on the need for employees to save for retirement and ensure they will have enough to achieve their retirement income goals.
“When potential employees are looking at companies, they clearly want a quality retirement plan,” said Tim Seifert, vice president, national sales manager for Small Market Retirement Plan Services, Lincoln Financial Distributors. “Offering a comprehensive plan doesn’t have to be complicated — with just a few conversations and some simple decisions, a small business owner can set up a new plan, or enhance the one they are already offering, for their employees.”
Wow Employees: Offer the Unexpected
While most small business employees expect employers to offer benefits like dental and vision insurance — at 80 percent and 69 percent5, respectively, small business owners can distinguish themselves by offering benefits that aren’t typical of an organization with fewer than 100 employees. Seventy-two percent of small business employees said it would exceed their expectations if an employer offered critical illness insurance, and 64 percent would be impressed if their employer offered accident insurance. These benefits are often voluntary, and the cost can either be shared between the employer and employee, or paid for by the employee. Small business employees are willing to contribute — 80 percent say they want a variety of benefits, even if they have to pay more for them6.
“The good news is, employees at small businesses see the value of workplace benefits, and many may be willing to put money toward them,” said Risk. “Small employers can differentiate themselves in the job market — and keep up with the competition — by offering a broad selection of voluntary benefits.”
A Focus on Life Insurance for Business Protection and Continuity
Research also shows that small business owners feel unprepared to deal with revenue loss due to death, disability or retirement of a partner or co-shareholder, and 40 percent are concerned with business continuity7. Small businesses should consider the value life insurance can provide in protecting their futures.
“No matter what size business you operate, it’s important to talk with an advisor who can help create a plan that will protect your business,” said Nathan Edwards, vice president, national sales manager, Executive Benefits and Business Insurance, Lincoln Financial Distributors. “These professionals can help small business owners attract and retain key employees through executive benefit planning. Keeping small business going in America is nothing short of a big endeavor, and a critical one.”
For more information, visit Lincoln’s page for employers and organizations.
To learn more about the research cited here, visit our newsroom.
About Lincoln Financial Group
Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $229 billion in assets under management as of December 31, 2016. Learn more at: www.LincolnFinancial.com. Find us on Facebook, Twitter, LinkedIn and YouTube. To sign up for email alerts, please visit our Newsroom.