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Micro businesses win big with Allstate Benefits

Small businesses are the heart of America and help to drive the U.S. economy. According to the U.S. Small Business Administration, there are 33.3 million small businesses in the United States, which represents 99.9% of total U.S. businesses.1 Small businesses also employ 61.6 million people, which accounts for almost half of the U.S. workforce.1

In the U.S., approximately 16% of small businesses have one to 19 employees.1

Small businesses are defined as businesses with fewer than 500 employees, and those with 10 or fewer employees are known as micro businesses. Due to their size, micro businesses often have smaller budgets and slim resources, which can affect hiring and employee retention. Offering unique benefits that fit employees' needs can be the solution that micro businesses are looking for—without adding to the bottom line.

In recent years, the labor market has become tight, with the number of job openings outpacing the number of prospective employees to fill them.2 With the current labor challenges, micro businesses have to be creative and work harder to find employees. In Bank of America's 2023 Small Business Owner Report, 52% of small business owners state that they continue to be impacted by labor shortages.3 This has resulted in many business owners working more hours, having difficulty filling job openings, raising wages to attract talent, and losing customers due to staffing issues.3 Finding and retaining talent is critical for small business operations.

Continue reading to learn how Allstate Benefits can help micro businesses overcome these challenges.

Two smiling women in aprons standing in the doorway of a small business.

Allstate Benefits provides micro business employers with Small Market Solutions, a unique product portfolio of group supplemental benefits that fit employees' needs.

Allstate Benefits offers a signature Small Market Solutions (SMS) program for employers with three to 249 employees.. This unique product portfolio includes Accident Insurance, Critical Illness Insurance, Disability Insurance, Hospital Indemnity Insurance, and Life Insurance—all with the same generous coverage details usually reserved for larger employers. SMS also features competitive underwriting and streamlined enrollment.

An effective benefits package can enhance micro business employers' recruitment and retention goals. Supplemental insurance products top the list of sought-after benefits for employees who work at small businesses.4 When employers fulfill this unmet need, they can improve employee satisfaction and inspire employee loyalty.4

Both micro business employers and employees win big with the SMS program.

The SMS program offers key advantages for both micro business employers and employees.

Advantages for Employers

  1. Low costs – Costs are minimal when employers administer a 100% employee-paid program.
  2. Product options – Employers are able to select plans under each product to build a benefits package that best meets the needs of their employees.
  3. HR recruiting tool – The benefit offerings can be used as an incentive to hire and retain strong talent since they are similar to benefits offered by larger employers.
  4. Improves benefits portfolio – Supplemental benefits are a boost to major medical coverage and add value to an overall benefits package.

Advantages for Employees

  1. Convenience – Employees have access to affordable group rates and convenient payroll deduction through their employer.
  2. Access – In most cases, there are no medical questions to answer and eligibility is unaffected by pre-existing medical conditions.
  3. Coverage options – Coverage is available for individuals and families.
  4. Wellness Benefits – In addition to the supplemental products, financial support may also be available to help pay for preventative care screenings, vaccinations, treatments, and health management programs.

Allstate Benefits wants micro businesses to win. With the SMS program, micro business employers can do more than just fill a position; they can find the right talent for open roles and offer powerful benefit options that protect employees and their families from life's uncertainties. Learn more about SMS by clicking here or by contacting an Allstate Benefits Representative.

Disclaimers: These policies have exclusions and limitations, may have reductions of benefits at specific ages, and may not be available for sale in all states.

This coverage does not constitute comprehensive health insurance coverage (often referred to as "major medical coverage") and does not satisfy the requirement of minimum essential coverage under the Affordable Care Act.

12023 Small Business Economic Profile US | SBA Office of Advocacy (accessed February 2024)
2Understanding America's Labor Shortage | U.S. Chamber of Commerce (February 2024)
32023 Small Business Owner Report | Bank of America (accessed March 2024)
42023 BEAT Study: Benefits and Employee Attitude Tracker | LIMRA (May 2023)

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