Principal Survey Finds Businesses are Growing While Employees are Less Confident

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The latest data from the Principal Financial Well-Being IndexSM (WBI) shows a disparity between U.S. employers and their employees in financial health and well-being. As employer sentiment and business health remains steady, there are opportunities for employers to support employee financial health.

Here are the trends:

  • Businesses continue to grow but are less optimistic about the economy. Employer sentiment remains high, despite persistent concerns about inflation and the stability of the U.S. economy. More businesses are currently growing compared to this time last year (64% vs. 52%). Small businesses also reported year-over-year increases in growth (58% vs. 46%). However, while most businesses report growth, they’re less optimistic about the overall growth of the U.S. economy.
  • Inflation remains a top concern for employers and employees. Employers are most worried about economic inflation, stability of the U.S. economy, higher taxes, cost of health care, and a potential upcoming recession. Employees are concerned with economic inflation, stability of the U.S. economy, cost of health care, a potential upcoming recession, and stability of the global financial system.
  • There’s a disparity in financial health and well-being between employers and their employees. Employers (83%) and Employee (56%) set long-term financial goals and strive to achieve them. Employers (87%) and Employee (58%) are confident that they’ve done a good job making long-term financial plans.
  • Small businesses continue to add staff. Over the past three months, small and large businesses have focused on adding and maintaining staffing levels. Reasons for decreased staffing include: changing career paths (32%), employees not performing (27%), retirement (27%), employees left for a position with greater remote flexibility (24%), and geographic relocation (19%).
  • Employee benefits and wages trend upward. Employers recognize the need to support their employees during economic time. The top 5 benefits employers expect to increase are training and educational opportunities (43%), mental health/well-being programs (40%), flexible schedules/times (40%), health care benefits (39%), and retirement benefits (36%).

See and share the results

Interested in getting deeper insights about the well-being of businesses? Share this article with clients or download the WBI infographic report.

The Principal Financial Well-Being IndexSM (June 5-12, 2023) surveyed 500 business owners, decision makers, business leader participants, and a total of 200 employee participants at companies with 2-10,000 employees. Businesses must over at least health insurance or retirement benefits.