Small Businesses See Growing Need for Advisers

More than nine in 10 small business leaders predict that their need for an outside financial adviser will increase or stay the same over the next several years, according to a recent LIMRA study.

Dubbed “A Little Advice: How Small Businesses Use Advisors (2013),” the study found that businesses with 10 to 24 employees, companies that are in the middle of establishing operations, and organizations looking to expand are most likely to seek external aid while setting up and managing benefits plans.  

Another key finding in the study: Among the 98% of businesses in the U.S. that employ fewer than 100 people, only half have used an adviser, regardless of whether they offer some type of benefits plan.

For those employers surveyed that have used an adviser, half also reported feeling satisfied with the services they received. Four in 10 small businesses reported themselves as “neutral” with regard to adviser satisfaction.

The top reason small-business employers gave for eliminating their adviser was cost.

The survey also included analysis of the types of services most often requested of advisers by small-business owners. More than eight in 10 advisers (84%) reported being engaged to review benefit plans to ensure competitive rates and services. A slightly lower percentage (78%) said they had been hired by a client to review renewal rate adjustments to ensure competitiveness and appropriateness.

A full list of the most popularly requested adviser services can be read here.