Latest Eastbridge research shows small employer benefits catching up to larger firms

AVON, CONNECTICUT, USA (December 18, 2024)

Majority of small employers offer at least one voluntary benefit

Small employers are narrowing the gap with larger companies in offering many types of employee benefits, according to new research from Eastbridge Consulting Group.

Eastbridge’s Voluntary and the Small Case Market Spotlight™ Report shows small employers are still less likely than larger employers to offer many types of benefits, but most offer medical, prescription drug, dental and vision coverage. Two-thirds or more of employers with 50–99 employees also offer accident, disability and life insurance. In addition, a solid majority of small employers — 70% of those with 50–99 employees and 60% of those with 10–49 employees — offer at least one voluntary benefit.

“The small case market continues to offer huge potential,” said Ginger Bates, Eastbridge director of research. “With a small business on nearly every street corner, access to these employers is typically easier than in larger market segments.”

The Voluntary and the Small Case Market Spotlight™ Report compiles research from multiple surveys and analyzes the results and opportunities for selling voluntary benefits to employers with 10–99 employees. The report covers topics including products sold in this market, small employer preferences that impact carrier service, employee attitudes about owning voluntary benefits, and opinions of brokers who focus on this segment. Voluntary carriers can use this information to better position themselves to compete in the small case market.
Other key findings in the report include:

• More than a third of small employers surveyed say they’re likely to add a new voluntary benefit in the next 12–18 months.
• The number of small employers using a single carrier for all their voluntary benefits is growing.
• Small employers strongly value online services, especially the ability for employees to file claims online.