Small-Business Owners Focusing On Employee Benefits
WASHINGTON, D.C. – The Insured Retirement Institute (IRI) and Lincoln Financial Group yesterday presented research findings from CEB that found small business owners are focusing on developing competitive benefit programs as part of their approach to attracting and retaining their workers. The research findings, which were discussed during an educational webinar for financial professional to recognize National Small Business Week, also uncovered that financial professionals have tremendous influence over small business owners’ purchasing decisions. An advisor has 35 times more influence than a supplier representative, according to CEB.
“Small business owners recognize the importance of developing competitive benefit packages to attract and retain their workers,” IRI President and CEO Cathy Weatherford said. “Given the value small business owners’ place on financial advisors’ recommendations, this is an area where financial professionals are well-positioned to assist small business owners in helping them manage and grow their businesses. And considering that 63 percent of net new private-sector jobs are with small businesses, this will certainly be a new and growing market for advisors.”
The research by CEB found that 39 percent of small business owners currently offer their workers retirement plans, and that 38 percent of small business owners have life insurance for themselves. The research also found that advisors’ recommendations extend beyond employee benefits. Small business owners value advisors’ input on business insurance, credit cards, as well as services for accounting, payroll and human resources.
“With only 23 percent of small businesses sponsoring defined contribution plans, that means there’s plenty of opportunity to start new conversations and build client relationships with top decision-makers at businesses all over the country,” Tim Seifert, National Sales Manager for Small Market Retirement Plans, Lincoln Financial Distributors said. “Perhaps now more than ever, the defined contribution product landscape is better aligned with the unique needs of small businesses. That’s one reason why advisors looking to grow their business should be focusing on this segment of the market.”
About the Insured Retirement Institute: The Insured Retirement Institute (IRI) is the leading association for the retirement income industry. IRI proudly leads a national consumer coalition of 40 organizations, and is the only association that represents the entire supply chain of insured retirement strategies. IRI members are the major insurers, asset managers, broker-dealers/distributors, and 150,000 financial professionals. As a not-for-profit organization, IRI provides an objective forum for communication and education, and advocates for the sustainable retirement solutions Americans need to help achieve a secure and dignified retirement. Learn more at www.irionline.org.
About National Small Business Week: National Small Business Week is an annual event organized by the Small Business Administration to recognize the achievements of the top small businesses in the nation. Since 1963, the president of the United States has issued a proclamation calling for the celebration of National Small Business Week. This year National Small Business Week will be recognized from May 1-7 with national events planned in Washington, D.C., New York, Denver, Phoenix, Oakland and San Jose, Calif. Events throughout the week will be live-streamed on SBA’s website at www.sba.gov. Make sure to check in during the event for live social media engagement, using the hashtag #DreamSmallBiz. For more information on the national events please visit: www.sba.gov/smallbusinessweek.
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News