Many small and midsize businesses (SMBs) and employees are feeling more hopeful and optimistic after the presidential election and anticipate improvements in their financial outlook. This optimism is tempered by persistent worries about inflation, rising expenses, and personal finances.
The Principal SMB Sentiment
The latest findings from the December 2024 survey.
Data shows
In the next 12 months:
- A record 81% of SMBs want to add benefits.
- 79% of employees want their employer to add benefits.
Not having the right benefits can negatively impact recruiting and retention.
- 36% of employees are likely to leave their employers soon if benefits don’t improve.
- Gen Z and Millennials (56%) are most likely to leave employers for better benefits.
| Top benefits to add | ||
|---|---|---|
| Ranking | SMB top benefit | Employee top benefits |
| 1 | Mental health benefits (33%) | Health insurance (40%) |
| 2 | Health insurance (27%) | Dental insurance (34%) |
| 3 | Paid family/medical leave (25%) Retirement benefits (25%) |
Retirement benefits (30%) |
| 4 | Dental insurance (22%) | Paid family/medical leave (29%) |
| 5 | Childcare assistance (21%) | Mental health benefits (26%) Vision insurance (26%) |
| 6 | Life insurance (20%) | Life insurance (19%) |
Data shows
The most important SMB issues:
- Staying in business (95%)
- Customer experience (95%)
- Keeping existing customers (95%)
- Maintaining cash flow (95%)
The most anticipated changes in the next six months:
- 47% Become more agile/adaptable
- 44% More focus on customer experience
- 38% Add new products/services
- 38% Upskill employees to expand capabilities/advance their career
| Impact of inflation |
|---|
| Business has made/is making changes (83%) |
| Business growth has been impacted (79%) |
| Business does not have enough capital on hand (37%) |
Data shows
Employee mental health remains a top business issue for 75% of SMBs.
A top reason for worsening employee mental health is concern about personal finances.
As a result of the presidential election, most SMBs (71%) and employees (58%) are optimistic about their future finances. The government policies expected to have the most impact are:
- Taxes
38% of SMBs vs. 30% of employees - Labor & wages
30% of SMBs vs. 29% of employees
| Reasons for worsening employee mental health | ||
|---|---|---|
| Ranking | SMB top reasons | Employee top reasons |
| 1 | Inflation/rising cost of living (87%) | Concern about their financial situation (89%) |
| 2 | Concern about their financial situation (86%) | Inflation/rising cost of living (88%) |
| 3 | Anxiety/stress/depression (83%) | Excessive workload/too much to do (86%) |
| 4 | Excessive workload/too much to do (79%) | Employees working too many hours (84%) |
| 5 | Increasing consumer debt levels (77%) | Anxiety/stress/depression (83%) |
Putting insights to work
Employee benefits
61% 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
Mental health
75% 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
Recruiting and retention
49% of employees are considering changing jobs in the same career. This response is higher with Gen Z and Millennials.
Employee retention guide
