PeopleKeep worked with over 400 small businesses to assess their use of and priorities for employee benefits in 2019 and 2020.

1. The top five reasons employers selected a
health reimbursement arrangement include
“It’s the right thing to do.”
Small Business Benefits Landscape
The data from this study were sourced by a June 2019 online survey of 400 U.S.-based qualified small employers (1-49
employees) who were currently offering a QSEHRA to employees. This research was generated by PeopleKeep.
Copyright © Inc. 2019. PeoplekeepⓇ is a registered trademark of Peoplekeep, Inc.
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How are small businesses thinking about, prioritizing, and
budgeting for health and non-health benefits in 2019?
21.6%
It’s the right
thing to do
21.6%
Group insurance is
too expensive
20.1%
Overall
employee retention
12.2%
Overall
employee recruiting
6.9%
Retain one or two
existing employees
41.8%
Increase wages
17.6%
Increase health
reimbursement allowance
14.0%
Add another benefit
15.9%
Add retirement benefit
5.3%
Increase retirement benefit
5.3%
Contribute to employees'
health savings accounts
Top priorities for small businesses that anticipate
having extra budget are increasing wages (41.8%)
and increasing health reimbursement
allowances (17.6%).
27.7%
reimburse cell phone expenses
13.4%
reimburse for
commuter / transit expenses
61.0%
reimburse for professional
development / continuing
education expenses
In addition to health benefits, small business
employers are reimbursing other expenses...
of small businesses are prioritizing
increasing benefits in the
next 12 months.
1 in 10 have already planned increases.
Over half see benefits increases as likely to occur.
of small businesses do not plan on
increasing benefits in the
next 12 months.
47.6% cited lack of budget
23.8% recently made increases
21% don’t think this is necessary
7.7% cited other reasons