Broker Recap: Key Takeaways from SHRM’s 2026 Benefits Survey

Quick look: Based on responses from nearly 5,500 U.S. organizations, the Society for Human Resource Management (SHRM) 2026 Employee Benefits Survey highlights several current benefit trends, from rising healthcare costs to a growing interest in adopting artificial intelligence (AI) tools. These responses show where your clients may be rethinking their strategies and where a professional employer organization (PEO) partnership can help them reach those goals.

Each year, SHRM’s Employee Benefits Survey provides a comprehensive look at what U.S. employers are offering their workers and what’s changing. The 2026 edition, based on data collected from 5,472 organizations across industries and regions, surfaces the pressure points facing many small and midsized businesses (SMBs).

Here’s a look at the key trends from this year’s report and the opportunities they create for brokers to deliver even more value to their clients.

Companies are focusing on healthcare cost optimization and preventive services

For the fourth year in a row, employers rated medical benefits the most crucial, with 88% of employers rating them as “very important” or “extremely important.” However, the percentage of organizations offering a fully insured health plan dropped from 70% to 67%, and self-insured plans increased from 27% to 29%.

This shift reflects an ongoing prioritization of cost control, but it also introduces new risk and administrative complexity for SMBs that may not have the human resources (HR) infrastructure to manage it.

Further, organizations are leaning into preventive healthcare, with offsite fitness center reimbursements and fitness equipment subsidies growing five points, and annual health risk assessments and health fairs rising four. This trend is slated to continue; as GLP-1 coverage edges toward becoming standard practice, wellness programs may become both a prerequisite for coverage eligibility and a cost management tool.

Broker perspective: Clients increasingly seek flexible, cost-effective healthcare structures. Conversations about plan design, specialty drug management, and preventive care are likely to resonate.

Retirement is still a priority, but contributions are slipping

Retirement benefits tied with leave as the second-highest employer priority, with 82% rating these plans as important. Traditional 401(k)s are still the most common retirement offering at 90%, and Roth 401(k) availability has grown eight percentage points since 2022.

The survey reveals that 81% of employers offered 401(k) matches this year, down from 85% in 2025. Additionally, average maximum employer matches decreased slightly for both traditional and Roth 401(k) plans, and retirement education fell 3%.

On a positive note, employer matches for 529 college savings plans grew from 1% to 5%.

Broker perspective: It may be worth proposing a benefits audit to SMB clients to ensure they’re not falling behind with their retirement offering. Pitching college savings benefits could also strike a chord, as it’s a relatively low-cost perk that appeals to staff managing education costs for themselves or their families, and the SECURE 2.0 Act’s 2024 provision means certain unused 529 funds can roll into a Roth IRA.

Parental leave is a hot topic

Parental and family leave saw some of the sharpest increases in the entire survey:

• Paid parental leave rose from 39% to 46%
• Paid maternity leave climbed from 38% to 44%
• Paid prenatal leave beyond legal requirements jumped from 10% to 18%

The survey cites that offering paid family leave can increase mothers’ workforce participation by 25% after birth, which shows how it not only helps retention but can be part of a greater talent pipeline strategy. And as more states enact mandatory paid family and medical leave laws, employers who haven’t yet reviewed their policies may fall behind the curve.

Broker perspective: Parental leave and family-friendly benefits are quickly becoming a baseline expectation for competitive employers. Consider discussing how this benefit can help clients attract and retain talent, and level the playing field for women in the workplace.

Benefits are expanding beyond the employee

Beyond formal leave, benefits for both furry and human family members became more popular this year.

In 2025, 22% of employers offered pet insurance, and now 27% do. Additionally, access to elder care services and information rose from 7% to 11%, an uptick reflecting the growing caregiving demands of an aging population.

Broker perspective: In general, employees are looking for benefits that don’t just meet their personal needs, but the needs of their family members. For brokers, this trend presents opportunities to help clients analyze their workforce demographic and identify fitting benefit opportunities (these tend to be fairly low cost, too).

Flexible work is evolving, not disappearing

Flexible work benefits rated slightly lower in employer importance than the year prior:

• Hybrid work fell from 57% to 54%
• Flextime during core business hours dropped from 51% to 45%
• The number of employers who ranked flexible work as “very important” or “extremely important” decreased 2%

However, not all these benefits are on the decline:

• Four-day workweeks grew from 8% to 10%
• Break arrangements increased from 40% to 41%
• 27% of employers now offer work-from-anywhere arrangements for a limited, specified period (this is the first year SHRM is tracking this benefit)

Broker perspective: While some small drops were seen, the broader trend suggests flexible work arrangements remain an important differentiator for many employers and clients may want to consider offering it to strengthen recruiting and retention efforts.

AI tools are the fastest-growing benefit of 2026

Perhaps unsurprisingly, employer-sponsored subscriptions to AI tools surged from 16% in 2025 to 33% in 2026 (the largest single-year increase in the survey).

However, the survey flagged a potentially concerning finding: while AI tool access is rapidly expanding, formal training to help staff develop new skills dropped 7%.

Broker perspective: AI platforms undoubtedly can help busy SMBs reclaim time, but providing teams with AI applications without teaching them to use them safely and effectively can be a risk. Clients may benefit from guidance around AI governance, acceptable use policies, training programs, and workforce readiness.

Professional development: shifting from classroom to coaching

SHRM’s research suggests HR teams are prioritizing short, focused, on-the-job learning, with formal skills training falling 7%, professional membership funds dropping 6%, and license renewal fee coverage decreasing 5%.

Employers are also leaning into developing their leaders, with 55% of employers now hosting executive and leadership coaching (up from 47%).

Further, student loan repayment benefits also showed consistent growth, with company-provided repayment growing from 8% to 10%, and the average tuition or loan repayment maximum rising to $5,546.

Broker perspective: While traditional training is happening less often, a focus on leadership development, coaching, and educational assistance can go a long way in terms of succession planning and internal development.

Helping your clients respond to market shifts

The trends in SHRM’s 2026 report show us that SMBs are competing in an increasingly complex and costly environment, often without a significant internal HR capacity. That’s where your recommendation of a PEO relationship, like one with ExtensisHR, can alleviate some pressure.

At ExtensisHR, we help employers access Fortune 500-level benefits and best-in-class HR support. Here’s what that looks like with us:

• Flexible benefit plans: One-size-fits-all benefit packages are no longer a viable strategy. We give clients access to a broad portfolio of health, retirement, and supplemental benefits to match their workforce’s specific needs.
• Industry-leading customer service: For employers without a dedicated HR team, navigating annual benefits changes, legislative shifts, and staff’s questions can be burdensome. For HR teams, our dedicated Account Managers and HR Business Partners work together to keep SMBs running smoothly and compliantly. And on the employee level, our Employee Solution Center responds to inquiries in 15 seconds or less.
• Complimentary recruiting support: We provide recruiting services within our PEO solution at no extra charge to help clients attract, hire, and onboard the talent they need.
• A broker-friendly business model: Your success is our success. With us, you retain your book of business, receive ongoing commission for the life of the client relationship, and have a dedicated broker support team.

As clients evaluate their benefit strategies for the year ahead, SHRM’s latest data can help inform conversations around workforce priorities and cost management. And together, we can help employers build benefit programs that meet the needs of their workforce with smart, tailored solutions that help everyone succeed.