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Small Employers Make Strides in Employee Benefits

In a significant shift in the landscape of employee benefits, recent research from Eastbridge Consulting Group indicates that small employers are increasingly matching the offerings of their larger counterparts. The findings from the "Voluntary and the Small Case Market" Spotlight™ Report highlight that while small businesses may still lag behind in certain areas, they are quickly catching up in providing crucial employee benefits.

As of December 2024, a majority of small employers now offer a variety of essential benefits such as medical, prescription drug, dental, and vision coverage. Notably, data shows that around two-thirds of small employers with staff numbers between 50 and 99 are providing accident, disability, and life insurance as well. This reflects a growing recognition among small businesses of the value of comprehensive employee benefits.

The Rise of Voluntary Benefits

One of the more encouraging findings is the increasing availability of voluntary benefits for employees. The study found that 70% of small employers with 50 to 99 employees and 60% of those with 10 to 49 employees are offering at least one voluntary benefit. Ginger Bates, the director of research at Eastbridge, emphasizes that, "The small case market continues to offer huge potential." This statement resonates particularly with the vast number of small businesses present in local communities, making them more accessible for benefits providers.

The report also notes that there is a strong likelihood of growth in voluntary benefits among small employers, with over one-third of those surveyed indicating intentions to add new offerings within the next 12 to 18 months. This trend is indicative of a broader acknowledgment that competitive employee benefits are essential both for attracting talent and for retaining it.

Increased Reliance on Single Carriers

Interestingly, many small employers are consolidating their employee benefits needs by using a single carrier for all voluntary benefits, which is an increase from previous years. This allows for better management and a streamlined process for both employers and employees, which enhances the overall experience. In today’s digital world, small businesses are also placing a high value on the availability of online services, with many favoring platforms that enable employees to file claims easily.

The implications of these findings are substantial for the benefits industry. Carriers focusing on voluntary products are urged to leverage this growing market by understanding small employer preferences and needs. As the small business segment continues to expand, having tailored products and services will be key to securing a foothold in this market.

Future Prospects in Employee Benefits

The evolution of voluntary benefits in small businesses reflects broader trends in the job market and employee expectations. Just as larger firms have historically set the benchmarks for benefits, small employers are now empowered to follow suit, creating a more equitable workplace environment across the board. The continuing rise of benefits offerings among small firms signals a positive shift that can have lasting impacts on employee satisfaction and retention.

In conclusion, as small businesses step up their game in employee benefits, they are likely to attract better talent, improve employee morale, and ensure higher retention rates. As this trend persists, it will be exciting to see how the landscape of employee benefits evolves, with the small business sector playing an increasingly pivotal role.

To explore more about the findings and methodologies behind the "Voluntary and the Small Case Market" Spotlight™ Report, visit Eastbridge's website or contact them directly for more insights.

About Eastbridge Consulting Group

Eastbridge Consulting Group focuses on advising companies in the voluntary/worksite benefits sector, both in the United States and Canada. Their research offers critical insights into market trends and employer preferences, aiding in the effective delivery of benefits solutions.