Main Street Must Rethink Workplace Benefits to Counter Worker Shortages
Financial Literacy Month opportune time for small businesses to assess benefit offerings
Sixty-seven percent of small business owners are currently experiencing a staffing shortage, according to a
Workplace benefits can help small businesses recruit, retain, and reward talent
“Equitable is well positioned to support this market with workplace benefits that deliver ROI, given our experience designing retirement, employee benefits and life insurance solutions that are tailored to the unique needs of small businesses,” said
Spurred by the pandemic, The Great Resignation has tightened the labor market – making it difficult for small businesses to hire, retain, and reward quality talent. While some increased wages, many simply cannot afford to, especially in an environment with increasing inflation and supply chain disruptions – costs business owners don’t want to pass on to their customers.
“A common perception on
Traditional non-medical benefits like group disability income and life insurance are often funded by small businesses. While other non-medical benefits like, critical illness, accident and hospital indemnity are 100 percent employee paid—making them inexpensive for employers of all sizes to offer. Employees get the benefit of group pricing and the ease of small payroll deductions.
Non-traditional benefits like caregiving and mental health support are also becoming more attractive to employees as the interconnectedness between work and life becomes more apparent.
Interest in life insurance rose during the pandemic
Individuals are also seeing the value of insurance outside of the workplace. In fact, research has shown that the pandemic led to an
Those who purchase life insurance outside of the traditional workplace infrastructure either don’t work for an employer who offers it, are small business owners, or they would like to supplement their workplace insurance coverage.
“Those without employer-sponsored insurance don’t have access to group pricing and may not know how to navigate and select from the multitude of insurance products, solutions and companies,” said
A growing number of small business owners we work with are seeking information from our Equitable Advisors Financial Professionals about corporate owned life insurance strategies, which are specifically designed for small businesses to provide both protection as well as supplemental retirement benefits for their employees, Martinez explained. Term life insurance can also satisfy SBA loan requirements, Martinez added.
Importance of dialing up retirement plans
The majority of small businesses do not offer retirement plans, but for those who do, some may have considered dialing back on employer contributions due to the economic impact of the pandemic.
“Retirement plans are a great retention tool and are often considered the most valuable employee benefit, second to only health insurance. Instead of dialing back on employer contributions, small business owners should look to make their plans more attractive to workers, which in many cases can be done without incurring additional upfront costs,” Baehr said.
Simple changes like making it easier for workers to take their 401(k) with them if they leave your company shows prospective employees that you care about their personal and financial well-being beyond their tenure within your organization, which increases loyalty and retention, Baehr explains.
Equitable, a leading provider of retirement, employee benefits and life insurance for small and mid-sized businesses is encouraging small businesses to rethink their benefit offerings and how they can be leveraged to attract, retain, and reward talent during Financial Literacy Month.
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Source: Equitable