Financial Literacy Month opportune time for
small businesses to assess benefit offerings
Despite a falling unemployment rate and increased job growth,
Main Street is still experiencing a worker shortage – a burden that
can potentially be mitigated through workplace benefits, according
to Equitable, a leading financial services organization and
principal franchise of Equitable Holdings Inc. (NYSE: EQH).
Sixty-seven percent of small business owners are currently
experiencing a staffing shortage, according to a March 2022 survey
from the National Federation of Independent Businesses (NFIB).
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 Jessica
Baehr, head of Group Retirement at Equitable.
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 Main Street is that benefits are
expensive to offer,” said Stephanie Shields, head of Employee
Benefits at Equitable. “The reality is that workers’ mindsets have
shifted since the pandemic – many have witnessed firsthand how
important it is to protect their paychecks and the financial
well-being of their families. As a result, they are willing to
fully pay for non-medical benefits or share the cost with their
employer.”
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 11% jump in life insurance policy purchases in the U.S. in 2021
– the biggest gain since 1983.
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
Hector Martinez, head of Life Insurance at Equitable. “This is
where working with a financial professional can be beneficial in
helping them navigate these complexities with confidence.”
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.
About Equitable
Equitable, a principal franchise of Equitable Holdings, Inc.
(NYSE: EQH), has been one of America’s leading financial services
providers since 1859. With the mission to help clients secure their
financial well-being, Equitable provides advice, protection and
retirement strategies to individuals, families and small
businesses. Equitable has more than 8,000 employees and Equitable
Advisors financial professionals and serves 2.8 million clients
across the country. Please visit equitable.com for more
information.
“Equitable” refers specifically to Equitable Financial Life
Insurance Company. Overall, Equitable is the brand name of the
retirement and protection subsidiaries of Equitable Holdings, Inc.,
including Equitable Financial Life Insurance Company (NY, NY),
Equitable Financial Life Insurance Company of America, an AZ stock
company with main administrative headquarters in Jersey City, NJ,
and Equitable Distributors, LLC. Equitable Advisors is the brand
name of Equitable Advisors, LLC (member FINRA, SIPC) (Equitable
Financial Advisors in MI and TN).
GE-4668344.1(04/22)(exp.04/24)
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MEDIA: Monique Freeman (803) 521.4669
Monique.freeman@equitable.com
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