The big picture: A new survey reveals two-thirds of small business owners desire external assistance to manage employee benefits, a figure that rises to three-quarters for Gen Z and Millennial-owned businesses.

Why it matters: Despite increasing costs, small businesses are expanding benefit offerings to attract and retain talent, highlighting a critical need for expert guidance in a competitive labor market.

Between the lines:

• Small business health insurance offer rates increased from 41% to 46% between Q2 2025 and Q3 2026.
• Cost pressure and administrative complexity are the primary barriers, with median health insurance premiums up 31% since 2022.
• 98% of businesses with 20+ employees offer benefits, compared to 57% of those with fewer than five.

Staffing & HR impact: Staffing firms and HR tech providers have a clear opportunity to offer specialized benefits administration and cost-management solutions, enhancing their value proposition to small business clients and improving recruiter mobility.

The bottom line: Small businesses are willing to invest in benefits but desperately need support to navigate the complexities and rising expenses.