New Insights for Your Business Clients
New research indicates that 95% of employers say retaining employees is their most important business issue today.1 This research with small- to medium-sized businesses (SMBs) also shows big differences—with some similarities—between employer and employee viewpoints.
Where employers and employees differ
Compared to employers, employees are more:
- Likely to consider a job change. 41% of employees say one-quarter to three-quarters of them are considering changing jobs, while just 21% of SMB customers think the same.
- Interested in their employers adding benefits than employers are in offering them. 79% of employees want at least one, while 39% of SMB customers are fine with adding the same.
- Concerned about long-term remote issues. 41% of employees are more concerned about their business always offering a remote option compared to only 26% of employers.
- Worried about worsening employee mental health. Employees say a lack of raises/bonuses (62%) and inflexible/longer work hours (63%) contribute to mental health issues at significantly higher levels than employers say (34% and 33%, respectively).
- Uncomfortable with EAPs than employers think they are. Among SMB customers offering an Employee Assistance Program (EAP), 53% say their employees are comfortable accessing mental health benefits through work, yet only 38% of employees say the same.
And there’s a gap between employees’ perceptions and employers’ actions with:
- Hiring/retention efforts. While employers are working to remedy hiring challenges (30% increasing pay and 11% expanding the search) and retention challenges (43% increasing pay and 25% providing flexibility), 29% of employees say their employer is doing nothing about hiring and 31% say the same about retention.
- Remedying employees’ mental health. Employers are taking action to improve mental health (25% offering EAP and 19% allowing flexibility), but 40% of employees say their employer is doing nothing.
Where employers and employees agree
When it comes to perks and a work/life balance, employers and employees are on the same page:1
- The most desired employee perks/benefits are: 1) better health insurance, 2) unlimited paid time off, and 3) free or low-cost daycare services.
- Encouraging a better work/life balance is the best way to improve employees’ mental health.
Resources for your business clients
- The rise of total employee well-being. Share this article to help them understand how expanding the concept of workplace wellness helps staff feel supported and delivers value to businesses.
- Share our Taking care of employees and communities website for tips on communicating with their employees, supporting their overall well-being, and more.
- If they offer or plan to offer an EAP, Magellan resources can help their employees better understand what’s available and reassure the anonymity of the services.
Additional insights you can share
- 5 ideas to support women in the workplace after a pandemic setback
- 4 types of employee benefits to help keep your business competitive
- 4 future-proofing tips for your business: Better business continuity and crisis management strategies
Surveying our SMB customers for insights
Principal® has made a significant investment in customer experience management technology. This new technology gives our customers an easy way to provide feedback about their experiences. And hearing from our customers on a regular basis allows us to better partner with you, their financial professional, to meet their needs.
1 Principal Small Business Owner Sentiment Survey, August 2021.