Voluntary benefits: reduce stress, protect margins, strengthen teams

Advice for small to midsize business leaders and the brokers who support them

As inflation persists and operating costs climb, small and midsize business owners find it increasingly difficult to compete for talent on salary alone. But these businesses have something bigger companies don’t: personal relationships with their teams and a genuine investment in each employee’s well-being. For brokers and their clients alike, that creates an opportunity to strengthen retention and protect margins without adding to payroll.

One answer is hiding in plain sight

Voluntary benefits—employee-paid options like life, accident, and critical illness coverage—are often treated as optional perks. But new research from Equitable suggests otherwise.¹ These benefits function as strategic tools that reduce financial stress, reduce attrition, and give lean teams an edge in volatile times. For brokers, they represent a value-added solution that deepens client relationships while addressing real workforce challenges without impacting budgets. new research from Equitable suggests

When employees stress about money, businesses feel it, too

Worried employees are distracted employees. When people are stressed about money, it leads to lower productivity, higher absenteeism, and more turnover.

For small and midsize businesses, every lost employee not only brings a disruption in team dynamics and impact on those who stay, it also brings a significant financial cost. Retaining employees, ensuring they feel valued and remain productive, has become more important than ever.

Can’t raise salaries? Offer security instead.

Competing on salary alone isn’t sustainable for most of these businesses. But a culture of care and a modern, flexible benefits offering? That’s where smaller teams can shine.

Voluntary benefits help turn compensation into a strategic advantage. Because employees choose and fund their own coverage, these offerings enhance total rewards without adding to the employer’s bottom line.

Equitable’s national survey of over 500 small to midsize business decision makers found that¹:

• 63% say voluntary benefits help lower stress and improve performance
• 98% believe they help attract and retain top talent
• 73% say they signal care and commitment from leadership

For business owners, that means stronger teams without raising wages. For brokers, it’s a compelling data point that makes voluntary benefits easy to champion.

How small and midsize business owners see voluntary benefits

Employees value these benefits as well. Beyond dental and vision, they’re asking for protections that remove layers of worry:

• Life insurance to safeguard family income and housing security
• Critical illness protection to keep savings intact during health crises
• Accident coverage to manage unexpected costs without financial derailment

Each of these protections helps employees bring more focus to work—and that gives these businesses an easy way to compete with bigger companies without big-company budgets.

Frequently Requested Voluntary Benefits – Top 3

For brokers, simplicity is the secret weapon

Nearly 1 in 3 business leaders in our study said no one has ever talked to them about voluntary benefits. For brokers, this is an opening. Framing voluntary benefits as both a stress shield for employees and a margin protector for employers creates a conversation that goes beyond product sales.

By proactively raising the topic and pairing it with digital-first enrollment tools, brokers can meet client expectations while building lasting, consultative relationships. More than 60%1 of business leaders surveyed prefer to learn about and sign up for benefits online. When the experience is smooth, everyone wins: HR spends less time answering questions, employees engage more fully with their benefits, and brokers differentiate themselves through genuine value-added service. With platforms like Equitable’s, this streamlined approach is simpler to implement than ever.

How small to midsize businesses win: compete with care, not cash

Whether you’re a business owner building your team or the broker who advises them, voluntary benefits offer a cost-flexible way to compete without breaking the budget. For employers, they reduce turnover costs, strengthen culture, and help employees feel more secure—all while protecting margins and demonstrating you’re invested in your people. That means stronger teams without stretching payroll. For brokers, it means offering solutions that are as human as they are financial—and that’s a powerful differentiator.

You don’t have to outspend bigger competitors to win the talent game. In a landscape where every dollar and employee counts, voluntary benefits are how small and midsize businesses level the playing field and win.

Have questions about voluntary benefits? Connect with us today.