Bank of America Study Overview: What Benefits SMBs Need to Boost Employee Satisfaction

Quick look: Bank of America has released its Workplace Benefits Report. It highlights key areas business leaders should focus on to create solutions which better fit employee needs in order to drive retention and secure a successful future. Notably, the study reveals that many small businesses struggle to offer comprehensive employee benefits, highlighting a growing gap between employee expectations and what smaller organizations can afford to provide.

Bank of America has released its annual Workplace Benefits Report with timely insights across a range of benefits to help employers maintain a strong workplace culture in a competitive market. Though there is an obvious focus on financial wellness, the report also reflects employee attitudes toward healthcare benefits, preferred workplace models, and plans to stay with their company.

By reviewing the information provided and comparing how it matches up with what small- and medium-sized businesses (SMBs) are currently facing, brokers, working together with a professional employer organization (PEO), can provide a better benefits overview to fulfill what employees find relevant and keep engagement and retention levels high.

Breaking down the study

The small business study evaluates several key points which are valuable to brokers and clients wanting to revise their benefit plans. These include: overall financial wellness, health savings benefits, and other top employee perks, as well as workplace trends to watch for in the coming year.

Though a majority of surveyed employees claim they’re stressed about their current financial situation, this same demographic is also the most optimistic about their financial future. It leaves an opportunity for brokers, PEOs, and SMB clients to work together to personalize benefits and ensure employees understand the value they’re receiving.

Financial wellness

Only a third of employees from small companies rate their financial wellness as “good or excellent” compared to employees at larger companies. Additionally, the increased percentage within a six-month timeframe is significant as well.

The good-to-excellent rating of SMB employees increased from 33% to 34% while employees from larger companies experienced a larger boost in financial wellness satisfaction, jumping from 26% to 40%.

Additionally, SMB employees were the only surveyed segment which didn’t report saving for retirement as their top financial priority. They were most interested in paying off credit card debt.

Though these numbers seem to reflect areas where SMBs are struggling to offer the right support, it also means there’s an opening to fulfill specific demands being made, starting with financial education.

Financial education

With 90% of SMB leaders feeling “extremely or somewhat responsible” for their employees’ financial wellness, taking time to find creative ways to meet employee needs is valuable. Of the SMBs offering financial wellness programs (27%), the most frequent benefits provided are:

• 401(k) retirement plan information (63%)
• Financial advice including budgeting, debt consolidation, paying down student loans, etc. (59%)
• Online financial tools (54%)

However, there are other areas of financial wellness which brokers and PEOs can focus on to help SMB employees with their savings goals.

• 32% of employees would like retirement education and planning
• 26% of employees favor online financial tools with steps identifying ways to improve
• 22% of employees appreciate having all financial info in one place to help them reach their goals

Implementing pertinent and convenient financial resources as part of a comprehensive benefit plan could be effective in driving higher engagement and greater employee retention.

Health saving benefits and top employee perks

Employees are also seeking guidance regarding other benefits, including healthcare plans, particularly when planning for future healthcare costs.

Though many SMBs offer a high-deductible health plan (HDHP) with a health savings account (HSA) or flexible spending account (FSA), nearly 50% of employees are not currently active in saving for future healthcare expenses.

Educating employees about their options can alleviate much of their financial stress and help them secure greater healthcare savings down the road. The study also reveals the top five benefits employees want their companies to provide within the next three to five years:

• Four-day work week (60%)
• Guaranteed income plan benefits (29%)
• Wellness reimbursement (29%)
• Flexible return-to-office policies (21%)
• Sabbaticals (19%)

These reflect a focus on creating a healthy work-life balance as time becomes a higher priority in a comprehensive financial wellness plan.

Workplace trends

Time also drives the report’s workplace trends and reflects the ability of SMBs to attract top talent by adjusting their benefit options. Employees seek flexible work schedules and better compensation, followed closely by better workplace benefits, more manageable workloads, and the ability to work remotely.

Overall, when it comes to wellness, financial or otherwise, it’s clear employees are seeking a holistic approach, and SMBs offering robust and relevant benefit offerings will continue to be the most competitive.

Bringing on a PEO to provide personalized employee benefits

Brokers partnering with a PEO automatically extend their offerings and give SMB clients access to premium benefits and negotiating power comparable to larger companies. This provides a competitive edge when attracting and retaining top talent.

Additionally, a PEO like ExtensisHR, in particular, provides a tailored benefit approach which includes a mix of financial wellness, healthcare plans, and work model benefits and perks. It also involves consistent communication and education for employees regarding the value of benefits. Among its extensive HR and benefit services, ExtensisHR provides:

• Employee assistance programs (EAPs) – This voluntary program provides confidential services, consultations, and referrals for employees to assist with personal and work-related issues including financial stress, mental health matters, and more.
• Dedicated HR team – SMB clients are appointed a team led by a SHRM-certified HR manager offering personalized attention to champion collaboration and implement creative solutions to meet evolving employee demands.
• Employee Solution Center – Delivers comprehensive support from experienced HR professionals across all services including benefit plan comparison discussions, employee onboarding, payroll matters, and more.
• On-demand HR knowledge – SMBs state having streamlined information is a pressing need. ExtensisHR’s HR Knowledge Cloud makes it convenient for business leaders to access the most accurate HR data along with immersive lessons and training modules to align with business goals.

The Workplace Benefits Report has helped identify areas where SMB leaders should extend their benefits, and how brokers can help them get the support and range of services they need to stay competitive.

Explore how working with a full-service, broker-friendly PEO can be a flexible, cost-efficient solution for your clients. Contact ExtensisHR today.