2020 Principal Financial Well-Being Index Finds Businesses Growing
In its seventh edition released in July, the Principal Financial Well-Being Index for Business Owners gathered insights from 500 leaders at companies from 2 to 10,000 employees for a look at how COVID-19 has affected how they do business, how it’s impacted their customers and employees, and what they plan to do moving forward during recovery.
Four Big Takeways
- Businesses have tried to maintain staffing.
– 76% haven’t cut staff.
– The two most popular cost-saving options are a hiring freeze and other budget cuts (such as travel).
- Employee well-being remains a clear priority.
– Fewer than 15% of businesses plan to reduce employee benefits. Some plan to expand them in response to COVID-19.
– 21% plan to boost mental health and well-being programs.
– 20% are increasing healthcare benefits.
- They’re adapting to uncertainty.
– 66% of businesses expect to recover economically within a year.
– Three popular reactions to COVID-19: increased cleaning (48%), more employees working remotely (39%), and increasing cash on hand (26%).
- Federal help is making a difference for small businesses and their employees.
– One-third of small businesses (2-500 employees) received federal assistance.
– 77% are spending the stimulus on payroll.
– 58% are also spending assistance on employee benefits.
The Impact on Small Businesses
- 37% of businesses, with under 500 employees, reported that their financials have improved significantly or somewhat in the past 12 months.
- More than half of small businesses described their financial health as stable and one-third are growing.
- As of March 2020, less than 10% considered reducing the employer paid portion of employee benefits, and less than 7% considered a reduction in the employee benefits offered.
- 83% of small businesses have been able to maintain or increase staff in the past 12 months.
- Over one-third have applied for and were approved for some type of federal assistance.
- 45% of employers with under 500 employees are using the assistance for employee health care benefits.
Download the full 2020 Principal Financial Well-Being Index to explore the findings in more detail.
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