A new report suggests small businesses are losing talented employees because management isn’t offering benefits that actually fit workers’ needs and priorities.

“Today’s workforce needs aren’t one-size-fits-all anymore, but many small businesses still feel forced into one-size-fits-all benefits,” according to the Small Business ‘Bene-Fit’ Gap Report from Justworks, a cloud-based HR and payroll platform for small and medium-sized businesses. “With today’s workforce spread across multiple locations, employees have different healthcare needs. Many employers assume their only options are to pick a single plan and risk missing the mark, or struggle with benefits costs that feel prohibitive.”

The study, commissioned by Justworks with The Harris Poll, examines how small-business decision-makers and workers think about health benefits—and why the gap between what employees expect and what employers can deliver is widening.

Three key findings from the small business benefits study

Here are three key findings from the study, which includes insights from more than 525 U.S. adults who make benefits-related decisions at businesses with one to 99 employees, as well as more than 1,325 employable U.S. adults.

1. Benefits flexibility is becoming a talent gap. Half of small-business decision-makers are concerned about the impact of benefits on hiring and retention. Of those, 80% say it is difficult to find a health benefits solution that works for employees’ different needs, and 96% say offering employees more choice in their health coverage is important.
2. Employers and employees are aligned on choice, but the tools haven’t caught up. Nearly nine in 10 decision-making respondents (89%) say it is important to offer employees more choice in their health coverage, while 86% of employees say flexibility in choosing their health insurance provider is important when evaluating a job offer—highlighting growing demand for benefits solutions that deliver both flexibility and certainty.
3. Workers expect to personalize health coverage. Almost all employees surveyed (87%) would consider working for a small business offering a monthly reimbursement to choose their own health insurance.

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