New Insights for Your Business Clients

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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

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.