The overwhelming majority of small businesses in the United States expect to use an advisor to help them manage their benefits, a new study reveals.
Ninety-four percent of small businesses surveyed believe that their need for an outside advisor will increase or stay the same in the next two years, according to a 2013 survey by LIMRA.
In particular, companies with 10 to 24 employees, firms that are still establishing themselves and those that are actively looking to expand are most likely to need an advisor, the survey shows.
“According to the U.S. Census Bureau, 98% of businesses in the U.S. have fewer than 100 employees, accounting for approximately 35% of the U.S. workforce. Yet only half of these companies use an advisor for business or personal needs regardless of whether they offer benefits to employees,” says Mary Boyce, associate analyst with LIMRA Insurance Research. “This presents a huge opportunity for advisors who are able to demonstrate their value.”
Half of the employers surveyed that use an advisor reported satisfaction with that advisor. But four in 10 small businesses were neutral about their advisors’ services. The main reason small businesses gave for eliminating their advisor was cost.
The survey also reveals that companies relied on their advisors for various services. The most important ones include reviewing their plans to ensure that the rates are competitive and services are current, and reviewing the renewal rate adjustment to ensure it is competitive.