Diverse Business Owners More Likely to Offer Robust Benefits Packages, Nationwide Finds

New Nationwide survey reveals more than 80 percent of both African-American and Hispanic business owners of companies under 500 employees indicate they offer some form of employee benefits.

As unemployment rates remain low across the country, strong employee benefits packages are a key driver of both recruitment and retention, according to insurer Nationwide.

Diverse business owners — specifically those owned by Hispanics and African Americans — appear to be leading the way, as they are the most likely to offer benefits that can increase employee satisfaction.

According to Nationwide’s fourth annual survey of U.S. business owners with 1-499 employees, 85 percent of African-American business owners and 81 percent of Hispanic business owners say they offer some form of an employee benefits package — well exceeding the broader business owner market (64 percent).

Across every benefit category included in Nationwide’s survey, more African-American and Hispanic business owners indicate they provide more benefits to their employees than the general population of business owners:

Medical insurance: Offered by 62 percent of African-American business owners, 52 percent of Hispanic business owners and 41 percent of total business owners

Dental insurance: Offered by 48 percent of African-American business owners, 43 percent of Hispanic business owners and 25 percent of total business owners

Paid time off: Offered by 45 percent of African-American business owners, 40 percent of Hispanic business owners and 33 percent of total business owners

Workers’ compensation: Offered by 40 percent of African-American business owners, 43 percent of Hispanic business owners and 33 percent of total business owners

Life insurance: Offered by 38 percent of African-American business owners, 38 percent of Hispanic business owners and 22 percent of total business owners

Retirement benefits: Offered by 37 percent of African-American business owners, 37 percent of Hispanic business owners and 27 percent of total business owners

Vision insurance: Offered by 34 percent of African-American business owners, 34 percent of Hispanic business owners and 20 percent of total business owners

Short-term disability: Offered by 23 percent of African-American business owners, 24 percent of Hispanic business owners and 17 percent of total business owners

Long-term disability: Offered by 20 percent of African-American business owners, 19 percent of Hispanic business owners and 14 percent of total business owners

Domestic partner benefits: Offered by 13 percent of African-American business owners, 17 percent of Hispanic business owners and 8 percent of total business owners

Pet insurance: Offered by 4 percent of African-American owners, 7 percent of Hispanic business owners and 2 percent of total business owners

The reasons for this form of employee generosity may vary, but one potential factor may be that the majority of African-American (64 percent) and Hispanic (55 percent) business owners surveyed believe it’s their responsibility to help their employees save for retirement, and about half said they feel their employees are on track to retire.

Copyright Today’s Credit Unions