Workers expect their defined contribution plans to play a greater role in their retirement income than annuities.
Although employees of small businesses share the same interests and concerns about their benefits and personal finances as employees in large companies, they're less likely to have benefits. But small employers don't have to settle for small benefits packages.
That's the message of a white paper released today by Colonial Life & Accident Insurance Company, according to a release.
The new research document, called "Small Business: Big Benefits," explores some of the issues facing small business employers and employees regarding their workplace benefits such as the rising cost of insurance, health care reform and employee recruitment and retention. Using proprietary and industry research, the white paper focuses on companies with fewer than 100 employees.
"Small businesses are the lifeblood of the U.S. economy," said Rich Williams, senior vice president, growth markets, at Colonial Life. "Our research shows the concerns of their employees aren't that much different than larger firms when it comes to personal finances. Employees in companies of all sizes tend to worry about having enough savings to retire, to cover an emergency or to cover being out from work if they're injured or sick. But small employers do have options when it comes to providing competitive benefits packages."
An online survey of more than 1,000 U.S. employees (full-time and/ or part-time) conducted by Harris Poll on behalf of Colonial Life1 revealed the percentage of employees working at small businesses (those with fewer than 100 employees) who are concerned about the following financial issues:
-Not having enough savings to retire as planned: 50 percent
-Not having enough savings to cover an emergency: 39 percent
-Not having enough savings to cover a period of being unable to work due to an illness or injury: 39 percent
-Losing their job: 33 percent
-Not being able to afford medical costs not covered by their health insurance: 32 percent
"Small employers value their workers and want to provide good benefits that address their individual needs," said Williams. "Yet today's economy and a changing regulatory environment make them hesitant to add new benefits. Voluntary, employee-paid benefits give small businesses a way to offer a competitive benefits package without impacting their bottom line."
In fact, employees in small businesses show considerable interest in purchasing additional insurance benefits if they had access to them through their employers. The Colonial Life poll1 noted employee interest in the following types of insurance plans:
-Life insurance: 49 percent
-Short-term disability insurance: 46 percent
-Critical illness insurance: 40 percent
-Accident insurance: 40 percent
-Cancer insurance: 21 percent
Although small employers typically don't have dedicated human resource personnel who can educate and manage their benefits enrollments, they do have options for these services. Small businesses can work with vendors that provide complimentary personal counseling sessions as part of their enrollment services to enhance their communication efforts.
"Small employers don't have to settle for small benefits packages," said Williams. "They can enjoy many of the same advantages as their larger counterparts. Voluntary benefits can be a tremendous asset to small businesses looking for a cost-effective way to compete in the marketplace," said Williams.
Download a copy of the white paper at ColonialLife.com.
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