For business owners, attracting and retaining quality employees is always a challenge — especially as unemployment rates decline across the country. As fewer people look for jobs, employers need to find ways to entice candidates to accept their offers and, perhaps even more crucial, to keep good talent from potentially leaving for better offers.
Providing a competitive benefit package is one proven way for employers to attract and retain the best of the best.
But does this resonate with small-business owners? Not so much. In fact, most aren’t offering benefits at all, according to the 2015 Principal Financial Group® Business Owner Survey, conducted by Harris Interactive. Somewhat shocking details from the survey — which measured the responses of business owners with two to 500 employees — found that only slightly more than one-third, just 37 percent, offer group coverage or employee benefits.
What’s behind this decision not to offer employee benefits?
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Are business owners too busy with other challenges to work this task into their schedules? Only 19 percent say this is why.
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Do they lack the capital to afford benefits for their employees? Just 18 percent give this reason.
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Are they unsure about where to start? Only about 10 percent say they’re overwhelmed by the process.
Surprisingly, the main reason business owners fail to offer benefits is actually no reason at all — 52 percent say nothing prevents them from planning; they just don’t do it.
These numbers spell opportunity for everyone.
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For business owners, the opportunity exists to increase employee job satisfaction and retention by offering a benefit package.
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For employees, the opportunity to acquire insurance protection and prepare for the future may be a determinant for staying with a company, or finding a new employer if the benefit package isn’t attractive.
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And for brokers, this is the time to seize the opportunity to help employers fill this void.
There are some simple ways to start the employee benefits conversation with small business owners.
1. Offer a complimentary financial review — Help small business owners understand their needs by sitting down for a complimentary financial review.
2. Uncover market sweet spots and make local connections — Seek out opportunities in your market. Reach potential clients by building relationships with small businesses in your community. Often, businesses with small employee populations — 10-24 employees — will express interest in adding benefits. And newer businesses, those still getting established or expanding, may need a nudge toward offering benefits to employees.
3. Start with the basics — Discuss with clients the need to establish a foundation with core insurance benefits for themselves as business owners, as well as their employees. But, don’t try to fulfill all their needs at all once. Fill critical needs first and return later to close any gaps.
4. Treat small business clients as big — Many businesses, no matter the size, arethe fulfillment of a dream and the result of a smart business plan and plenty of effort. Offer choice, affordability and flexibility so benefits can grow with business owners as their business grows.
5. Offer cost-saving options — For any business owner, keeping the bottom line out of the red is a top priority. Offering cost-saving options, such as voluntary benefits, is one important way to demonstrate you have the business owner’s best interest in mind.
While it would be easy to discount these findings, I think it’s best to use them as motivation to help small business owners find and keep talent. After all, keeping employees healthy, happy and productive is, fundamentally, the best business plan for any growing, vibrant business.
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