Main Street Businesses Are Optimistic About 2020
December 09, 2019 at 07:00 AM EST
Principal Financial Group® announced today that most small and medium-sized businesses (SMBs) are expecting to stay in growth mode over the next year while investing to stay competitive in a tight U.S. labor market, according to the 6th annual Principal Financial Well-Being IndexSM: Business Owners.
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2019 Principal Financial Well-Being IndexSM: Business Owners (Graphic: Principal Financial)
The Principal Financial Well-Being Index aggregates key insights from nearly 600 interviews with employers with less than 1,000 employees across the U.S. to provide a holistic perspective on timely issues facing this market segment, which makes up 99% of U.S. companies.1
“This year’s Principal Financial Well-Being Index revealed a majority of SMBs are growing despite universal challenges like health care costs, an increasingly competitive labor market and technology changes,” said Amy Friedrich, president, U.S. Insurance Solutions at Principal ®. “These business leaders are responding aggressively with new benefit offerings, employee reskilling or upskilling, and leaning into long-term staff who demonstrate experience and loyalty.”
Although SMBs recognize challenges ahead in 2020, they remain hopeful, with six in 10 expecting business growth and a significant increase in financials. Employers have grown increasingly optimistic over the past six years with a nearly 30% increase in employers expecting year over year growth and financial improvement, as measured by the Principal Financial Well-Being Index.
“While there continues to be speculation over an economic pull-back on Wall Street, Main Street businesses are expecting the momentum to continue for them so long as they stay competitive in the race for talent,” said Friedrich. “Small and medium sized businesses are the heart of the U.S. economy and we are committed to listening and responding to their needs.”
Differences between millennial and Baby Boomer business owners: Talent vs. Costs
To see the full survey results, visit https://www.principal.com/wellbeing.
About the Principal Financial Well-Being IndexSM: Business Owners
In order to support employers during benefit selection, Principal developed the Principal Benefit Design ToolSM. The free, interactive tool makes it easy for business owners to compare what their peers offer and initiate a conversation about implementing employee benefits that fit their organization’s culture. To learn more about Principal and our Employee Benefit solutions, visit: https://www.principal.com/employers/employee-benefits.
Insurance products and plan administrative services provided through Principal Life Insurance Co., a member of the Principal Financial Group®, Des Moines, IA 50392.
1 Moody’s Analytics. 2019 Employer Firm-Size Forecasts.