Small to midsize business (SMB) owners are offering benefits and solutions at record levels, indicating that benefits help improve recruiting, retention, and employee productivity.
The 51³Ô¹ÏºÚÁÏ Business Owner Insights
Priorities and insights can be viewed overall, and by generation, gender, industry, and employee size.
Data shows
Business protection has been the No. 1 priority for business owners since 2010, yet only 58% of owners indicate they have a plan.
Key employee benefits are now the No. 3 priority for business owners, the highest ranking since 2008.
Benefits are increasingly valued by business owners:
- 66% want to add more
- Seven in 10 say benefits help improve employee retention, recruiting, and productivity
- Taking care of employees is the No. 1 reason to offer benefits
| Ranking | Priority | % have/offer a plan |
|---|---|---|
| 1 | Business protection | 58% |
| 2 | Health & wellness solutions | 76% |
| 3 | Key employee benefits | 39% |
| 4 | Income protection | 50% |
| 5 | Non-medical benefits | 70% |
| 6 | Business succession planning | 65% |
| 7 | Voluntary benefits | 53% |
| 8 | Qualified retirement plans | 63% |
| 9 | Survivor income | 73% |
| 10 | Legacy & estate planning | 71% |
Data shows
Gen Z and Millennials:
- Represent 56% of SMB owners
- Own businesses that are significantly more likely to be growing
Employee retention is impacting Gen Z and Millennial business owners with 43% reporting increased employee turnover.
Significantly more Gen Z and Millennial owners offer employee benefits. They use their benefits package to help improve productivity, recruiting and retention.
| Ranking | Gen Z | Millennial | Gen X | Boomer |
|---|---|---|---|---|
| 1 | Health & wellness solutions | Key employee benefits | Key employee benefits | Business protection |
| 2 | Business protection | Health & wellness solutions | Business protection | Key employee benefits |
| 3 | Succession planning | Business protection | Health & wellness solutions | Health & wellness solutions |
| 4 | Key employee benefits | Succession planning | Income protection | Non-medical benefits |
| 5 | Income protection | Income protection | Non-medical benefits | Voluntary benefits |
| 6 | Qualified retirement plans | Qualified retirement plans | Qualified retirement plans | Succession planning |
| 7 | Voluntary benefits | Non-medical benefits | Voluntary benefits | Income protection |
| 8 | Legacy & estate planning | Voluntary benefits | Succession planning | Qualified retirement plans |
| 9 | Survivor income | Legacy & estate planning | Survivor income | Legacy & estate planning |
| 10 | Non-medical benefits | Survivor income | Legacy & estate planning | Survivor income |
Data shows
Both female owners (72%) and male owners (77%) want to offer more employee benefits.
Female business owners:
- Say attracting and retaining employees and taking care of employees are the top goals of their benefits package.
- Are the primary decision maker for benefits offered by the company (74% women vs. 65% men).
| Ranking | Female | Male |
|---|---|---|
| 1 | Health & wellness solutions | Key employee benefits |
| 2 | Business protection | Business protection |
| 3 | Key employee benefits | Health & wellness solutions |
| 4 | Non-medical benefits | Income protection |
| 5 | Income protection | Business succession planning |
| 6 | Qualified retirement plans | Qualified retirement plans |
| 7 | Business succession planning | Voluntary benefits |
| 8 | Voluntary benefits | Non-medical benefits |
| 9 | Survivor income | Legacy & estate planning |
| 10 | Legacy & estate planning | Survivor income |
Data shows
Manufacturing industry:
- SMBs reported a 38% increase in employee turnover over the last 12 months.
- Benefit packages are being used to help recruit and retain qualified employees.
- Business owners list attracting and retaining employees as their top goal.
- 77% of business owners want to offer more benefits to their employees.
| Ranking | Construction | Health services | Manufacturing | Professional/science & technolgy | Retail trade |
|---|---|---|---|---|---|
| 1 | Business protection | Key employee benefits | Key employee benefits | Business protection | Health & wellness solutions |
| 2 | Health & wellness solutions | Health & wellness solutions | Business protection | Health & wellness solutions | Business protection |
| 3 | Key employee benefits | Voluntary benefits | Health & wellness solutions | Key employee benefits | Key employee benefits |
| 4 | Qualified retirement plans | Qualified retirement plans | Business succession planning | Non-medical benefits | Income protection |
| 5 | Business succession planning | Non-medical benefits | Qualified retirement plans | Qualified retirement plans | Non-medical benefits |
| 6 | Non-medical benefits | Income protection | Income protection | Income protection | Qualified retirement plans |
| 7 | Income protection | Business protection | Voluntary benefits | Business succession planning | Voluntary benefits |
| 8 | Voluntary benefits | Succession planning | Legacy & estate planning | Voluntary benefits | Business succession planning |
| 9 | Survivor income | Survivor income | Non-medical benefits | Survivor income | Survivor income |
| 10 | Legacy & estate planning | Legacy & estate planning | Survivor income | Legacy & estate planning | Legacy & estate planning |
Data shows
SMBs with 50-499 employees value their key employees:
- Key employee benefits are their No. 1 priority
- They have significantly more key employees
- They are significantly more likely to want to offer more key employee benefits
SMBs with 50-499 employees are significantly more focused on growth goals:
- Adding new products/services
- Expanding into new markets
- Adding employees
- Adding contractors
- Adding partners
| Ranking | 2-9 employees |
10-49 employees |
50-99 employees |
100-199 employees |
200-499 employees |
500-1,000 employees |
|---|---|---|---|---|---|---|
| 1 | Business protection | Health & wellness solutions | Key employee benefits | Key employee benefits | Key employee benefits | Business protection |
| 2 | Health & wellness solutions | Business protection | Business protection | Business protection | Health & wellness solutions | Qualified retirement plans |
| 3 | Key employee benefits | Key employee benefits | Health & wellness solutions | Health & wellness solutions | Qualified retirement plans | Key employee benefits |
| 4 | Non-medical benefits | Non-medical benefits | Qualified retirement plans | Business succession planning | Income protection | Health & wellness solutions |
| 5 | Income protection | Income protection | Business succession planning | Income protection | Business protection | Income protection |
| 6 | Business succession planning | Voluntary benefits | Income protection | Qualified retirement plans | Non-medical benefits | Business succession planning |
| 7 | Voluntary benefits | Business succession planning | Non-medical benefits | Voluntary benefits | Business succession planning | Survivor income |
| 8 | Qualified retirement plans | Qualified retirement plans | Voluntary benefits | Non-medical benefits | Voluntary benefits | Voluntary benefits |
| 9 | Survivor income | Survivor income | Legacy & estate planning | Legacy & estate planning | Legacy & estate planning | Non-medical benefits |
| 10 | Legacy & estate planning | Legacy & estate planning | Survivor income | Survivor income | Survivor income | Legacy & estate planning |
Putting business owner insights to work
Key employee benefits
With nearly every business (98%) having key employees critical to the success of the business, significantly more owners want to offer additional key employee benefits.
Learn how to retain key employees.
Learn moreTips for business owners:
- Consider key employee benefits to recruit, retain, and reward your top talent.
- Work with a financial professional to find a plan to fit your business type and goals.
- Explore funding options tailored to your needs.
Voluntary benefits
While business owners are offering many employee benefits at record levels, affordability remains a top concern.
See what similarly sized organizations in your industry and region offer for benefits.
See benefit offeringsTips for business owners:
- Voluntary benefits are employee paid, so you can provide a competitive benefits package that fits your needs and budget.
- Help your employees understand the benefit offerings and how they can help them achieve financial security.
- Your employees may be a good source to determine which voluntary benefits are relevant to them.
Business succession plan
25% of business owners haven’t reviewed their succession plan in the past two years.
Learn how to build your business succession plan.
Build your planTips for business owners:
- Formal agreements help ensure everyone involved is on the same page when it comes time to transition the business.
- Consider funding vehicles – like savings or insurance – to help exercise the plan.
- Review your succession plan annually to remain current with business and business owner priorities.
Tools and resources
51³Ô¹ÏºÚÁÏ® Business Needs Assessment
Explore best practices to help protect your business, your employees, and your lifestyle.
Download the full report to see insights and key takeaways.
SMB resources
Access resources, tips, and insights to help your small or midsize business prepare for the year ahead.
