Employee benefits and retirement plan solutions Trends and Insights Principal Business Owner Insights: How employee benefits help growing businesses
Principal Business Owner Insights: How employee benefits help growing businesses

Our survey shows what small and midsize business owners prioritize and which plans they put in place. How do your priorities and plans compare? 

Business owners working in an office
3 min read |

Business owners are gaining in confidence and growth, according to the latest Principal Business Owner Insights survey of 1,000 small and midsize businesses (those with fewer than 500 employees).

A record 43% of businesses classify themselves as “growing.” These businesses are concerned with retaining talented employees and want to offer more employee and key employee benefits. Almost 80% of growing businesses say their benefit package improves the ability to recruit and retain employees. And 74% say it improves productivity. 

How do your business priorities compare?

We asked business owners to rank their priorities and share whether they have a plan in place. 

1. Business protection

An illustration stating that only 47% of the business owners surveyed have a business protection plan.

Business owners have chosen this as their No. 1 priority since 2010, yet just over half have a plan. 

Protect your business.

2. Health and wellness solutions

An illustration stating that 75% of the business owners surveyed offer comprehensive health insurance.

Health and wellness offerings have grown significantly, including comprehensive health insurance, health savings accounts (HSAs), employee assistance programs (EAPs), and emotional and mental wellness programs. 

Explore an EAP as a wellness solution.

3. Income protection

An illustration stating that 55% of business owners surveyed have a business succession plan.

It's been a Top 4 priority since 2010, yet less than half have a plan. Of those that do, 45% own individual disability income insurance. 

Protect your income.

4. Business succession planning

An illustration stating that 45% of business owners surveyed have an income protection plan.

Confidence in succession plans has reached record levels. The most popular—and growing—succession strategy is to give the business to family members. 

Build your business succession plan.

5. Non-medical and voluntary benefits

An illustration stating that 73% of business owners surveyed offer non-medical and voluntary benefits.

Dental (59%), maternity leave (57%), paid family and medical leave (56%), vision (55%), and accident insurance (53%) are the five most popular options.

Explore group insurance.

Benefits help attract and retain the right talent 

Recruiting and retention are critical issues for any business. Record levels (over 70%) of owners say offering benefits improve retention, recruiting, and productivity of their workforce.  

Get insights on the importance of employee benefits. 

Almost all businesses (98%) have key employees. More than half of business owners (55%) would like to reward these key employees with additional benefits. 

Explore ways to retain key employees, including retirement solutions. 

Online tools to help you and your business.

Assess your business needs

Use this tool to get a personalized report to explore best practices for helping protect your business, your employees and your lifestyle.

Compare your benefits

See how your benefits compare to what other organizations of your size, industry, and region offer their employees.

Reach Out

What's next?

Contact your financial professional, or let us help you find one.

Find a financial professional