SMBs Pivot on Benefits as Cost Pressures Squeeze Workforce
Event summary
- 72% of SMB employers cite rising medical costs as their top stressor, making cost control their #1 benefits priority since 2022.
- 89% of SMB employees report rising living and medical costs as major stressors, eroding holistic health.
- 56% of SMBs introduced new voluntary benefits in 2025 to balance cost and employee support.
- Job 'hugging' persists: 81% of necessity-based retainers report poor holistic health.
The big picture
SMBs face a dual challenge: controlling rising operational costs while addressing employee financial stress. MetLife's data reveals a strategic pivot toward voluntary benefits as a cost-effective way to maintain workforce health. This trend reflects broader industry shifts toward flexible, high-impact benefits solutions in tight labor markets.
What we're watching
- Cost-Benefit Tradeoffs
- How SMBs will balance rising healthcare costs with employee wellbeing investments.
- Voluntary Benefits Growth
- The pace at which voluntary benefits adoption accelerates as a cost-control measure.
- Job Market Volatility
- Whether 'job hugging' trends persist as economic uncertainty continues.
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