Small and midsize businesses (SMBs) and employees agree on the most desired benefits. They are also aligned on the importance of financial wellness programs and the impact of inflation.
The Principal SMB Sentiment
The latest findings from the February 2025 survey.
Data shows
In the next 12 months:
Both SMBs and employees agree on the most desired benefits to add:
While desire to add benefits is high, budget constraints and economic uncertainty keep SMBs from adding benefits.
| SMBs and employees agree about benefits, but to varying levels: | ||
|---|---|---|
| SMBs | Employees | |
| Benefits are more important than ever | 83% | 93% |
| Benefits are important for employee loyalty | 82% | 92% |
| Hiring would be easier with a more competitive benefit package | 63% | 81% |
| Employees are asking for more employee benefits | 57% | 78% |
Data shows
Recruiting and retention is the No. 1 business challenge.
Employers and employees disagree on why it’s challenging to retain employees:
Inflation is the No. 2 business challenge.
The impact of inflation is impacting employees more than employers.
| Top business priorities | |
|---|---|
| 1 | Growth (85%) |
| 2 | Accommodating different generations (72%) |
| 3 | Mental health (70%) |
| 4 | Bundle multiple employee benefits (67%) Increase pay to retain key employees (67%) |
| 5 | Expand workforce to meet business goals (63%) |
Data shows
38% of SMBs currently offer financial wellness to their employees.
SMBs and employees agree – retirement planning is the most desired financial wellness program.
Budgeting and insurance are also highly desired in financial wellness programs.
| Importance of financial wellness programs | ||
|---|---|---|
| SMBs | Employees | |
| Employee well-being | 80% | 83% |
| Employee productivity | 76% | 88% |
| Employee retention | 75% | 89% |
Data shows
More than half of SMBs think employees are considering a delayed or phased retirement.
SMBs say delayed retirement will have a positive impact on their business:
| Impact of delayed retirement | ||
|---|---|---|
| SMBs | Employees | |
| Positive | 38% | 33% |
| Neutral | 49% | 46% |
| Negative | 13% | 21% |
Putting insights to work
Employee benefits
55% of SMBs agree they’ll have to increase employee benefits to remain competitive.
See how your employee benefits compare to other organizations of your size, industry, and region.
Financial wellness
66% of employees are asking for financial guidance.
Support your employees through workplace and financial wellness initiatives.
Recruiting and retention
18% of SMBs say recruiting and retention are the biggest obstacles currently impacting their business.
Learn strategies to help retain employees and drive growth.