Jobs data over the past several months is a sure sign that the economy is moving in the right direction. Yet, pockets of uncertainly still exist and questions linger about how businesses and their owners will respond. But, new insight is available.
Business owners are more optimistic now than at any point during the past three years, according to the Principal Financial Well-Being Index, and nearly half (46 percent) say they are reinvesting profits back into the business.
This level of optimism will likely translate into job growth, innovation and new technology among small businesses. Accordingly, hiring is on the rise, which makes retaining top talent a major focus for owners striving to stay ahead of the competition.
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In addition, 33 percent of those business owners surveyed said offering a competitive benefit package helps keep employees loyal, happy and healthy. And, 22 percent pledge to add additional employee benefits in 2015, up over the prior year.
In quiet but dramatic ways, small business owners feel obligated to help their employees with financial security. It's based a bit less on the financial impact to the business and more based on heart.
With that in mind, as you approach these opportunities with business owners, here are a few suggestions:
- Treat small businesses like big businesses. Essentially, they don't view themselves as small and they crave choice and flexibility just like everyone else. Be sure to tailor a package that meets their specific objectives.
- Offer suggestions that allow the business to know what it'll take to be competitive in securing talent. Provide insight about what other similar businesses in the same industry, location and size offer as benefits. They find this to be invaluable.
- It's not just enough to sell products. Business owners want, and frankly need, solutions. Provide information and services to go along with the products, such as assistance managing their benefit data and compliance/reporting support, for example.
- Consider a limited selection of choices when voluntary products are part of the equation. Including everything all at once may overwhelm employees. The opportunity always exists to come back later and add to the portfolio as income levels and needs change over time.
Owners are very bullish about business conditions and many economists agree that 2015 will see faster growth, including increasing wage levels. This will spur movement in the labor market.
Now is the right time to reach out and help your clients ensure they have an attractive, competitive benefit package in place to secure the talent they need to grow their businesses.
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