Diverse Business Owners More Likely to Offer Robust Benefits Packages

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

“We treat our employees like family,” said Natasha Pongonis, a native Argentinean who is co-owner of Nativa, an independent multicultural marketing communications agency based in Columbus. “That’s why these survey results weren’t that surprising to me. They reinforce the fact that diverse business owners are diligent not only in job creation, but also in job security.”

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

“Employee benefits help business owners take care of their most important asset: their employees,” said Syed Rizvi, Nationwide’s chief specialty insurance officer. “And when it comes to caring for their employees, diverse business owners appear to be among the most generous. From retirement plans to workers’ compensation and even pet insurance, they are more likely to invest in their employees’ futures and personal well-being.”

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.