While a record 92% of small and midsize businesses (SMB) continue to experience growth or stability, they agree with employees that inflation, mental health, and employee benefits are on their minds – but disagree to what extent.
The Principal SMB Sentiment
The latest findings from the May 2024 survey.
Data shows
The most important SMB issues:
- Stay in business (97%)
- Maintain cash flow (96%)
- Keep existing customers (95%)
The most anticipated changes in the next six months:
- Focus on customer experience (37%)
- Add new products/services (35%)
- Become more agile/adaptable (31%)
| Impact of inflation |
|---|
| Business has made/making changes (83%) |
| Business growth has been impacted (79%) |
| Business increasing capital on hand (33%) |
Data shows
Employee mental health compared to last year:
Mental health has improved:
- 62% of SMBs
- 41% of employees
Mental health has gotten worse:
- 6% of SMBs
- 20% of employees
A flexible work arrangement is the No. 1 mental health benefit employees want most.
Employees say:
- Offering flexibility is more important than ever (90%).
- A flexible work schedule could help improve mental health (88%).
- Flexibility is important to employee loyalty and retention (85%).
| Reasons for worsening employee mental health | ||
|---|---|---|
| Ranking | SMB top reasons | Employee top reasons |
| 1 | Inflation/rising cost of living (86%) | Inflation/rising cost of living (89%) |
| 2 | Concern about their financial situation (85%) | Concern about their financial situation (86%) |
| 3 | Anxiety/stress/depression (80%) Excessive workload/too much to do (80%) |
Anxiety/stress/depression (85%) Excessive workload/too much to do (85%) |
| 4 | Not having the right/enough benefits (77%) | Employees working too many hours (83%) |
| 5 | Employees working too many hours (76%) | Lack of pay raises/bonuses (82%) |
| 6 | Lack of pay raises/bonuses (73%) | Not having the right/enough benefits (78%) |
| 7 | Increasing consumer debt levels (72%) Parents concerned about children’s mental health (72%) |
Increasing consumer debt levels (75%) |
| 8 | Worry about the future of the world (69%) | Parents concerned about children’s mental health (63%) Lack of employee well-being programs/support (63%) |
Data shows
In the next 12 months:
- 78% of SMBs want to add benefits.
- 84% of employees want their employer to add benefits.
The most common benefits SMBs want to add varies by employee size.
20-499 employee size
- Financial wellness programs
- EAPs
- Retirement benefits
- Childcare assistance
60-499 employee size
- Life insurance
- Key employee benefits
- Financial advice specific to retirement plans
- Debt-management assistance
| Top benefits to add | ||
|---|---|---|
| Ranking | SMB top benefits | Employee top benefits |
| 1 | Mental health benefits (26%) | Paid family/medical leave (31%) |
| 2 | Financial wellness programs (21%) | Mental health benefits (30%) |
| 3 | Paid family/medical leave (20%) Health insurance (20%) Employee assistance program (EAP) (20%) |
Health insurance (27%) |
| 4 | Dental insurance (19%) | Dental insurance (26%) |
| 5 | Life insurance (18%) Telehealth services (18%) |
Retirement benefits (25%) |
| 6 | Retirement benefits (17%) Emergency savings (17%) Key employee benefits (17%) |
Emergency savings (22%) |
| 7 | Childcare assistance (16%) | Vision insurance (21%) |
| 8 | Financial advice specific to retirement plans (14%) | Life insurance (21%) |
Data shows
Employees continue to be more concerned than SMBs about recruiting and retention issues:
- Attracting qualified employees
SMBs 59% vs. Employees 70% - Employees leaving/taking other jobs
SMBs 46% vs. Employees 57% - Upskilling employees
SMBs 51% vs. Employees 56%
While 76% of SMBs prioritize having employees of different generations in their workplace, generational and gender differences are impacting employee retention:
- Men are more likely to consider:
- Delaying retirement (58%)
- Actively looking for a new job (57%)
- Women are more likely to consider:
- Changing jobs/switching careers (52%)
| Employees considering an employment change | |||
|---|---|---|---|
| Employees | Gen Z / Millennials | Gen X | Boomers |
| Considering changing jobs/same career | 67% | 65% | 39% |
| Delaying retirement | 52% | 60% | 52% |
| Actively looking for new job | 64% | 58% | 34% |
| Considering changing jobs/switching careers | 54% | 53% | 34% |
| Considering phased retirement | 41% | 48% | 47% |
| Considering early retirement | 31% | 34% | 36% |
Putting insights to work
Mental health
74% of SMBs say employee mental health will remain a top business issue for them in the future.
Support your employees’ mental health through workplace and financial wellness initiatives.
Mental health guide
Employee benefits
64% of SMBs agree they’ll have to improve employee benefits to remain competitive.
See how your employee benefits compare to other organizations of your size, industry, and region.
Compare benefits
Recruiting and retention
59% of employees are considering changing jobs in the same career. This response is higher with Gen Z and Millennials.
Develop an employee retention strategy that drives business growth.
Employee retention guide
