Press release
Small and Midsized Businesses Concerned About Inflation, Pressure to Increase Wages and Benefits
Principal® survey finds more U.S. businesses are increasing hiring compared to last year, retirement contributing to staffing impacts DES MOINES,
About this update from Principal Financial Group Inc
[{"type":"text","content":"\nPrincipal® survey finds more U.S. businesses are increasing hiring compared to last year, retirement contributing to staffing impacts\n\n DES MOINES, Iowa--(BUSINESS WIRE)--\nPrincipal Financial Group® reports that while many small and midsized businesses show financial improvement from this time in 2021, shifting geopolitical issues, interest rate hikes, and continued recruitment challenges raise concerns about ongoing impacts.\nThis press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20220503005012/en/Our first wave of business insights for 2022 (Photo: Business Wire)\nAccording to the latest Principal Financial Well-Being IndexSM (WBI), 68% of businesses report financial improvement compared to this time last year. In March of 2021, large businesses1 outpaced small businesses2 in financial improvement by 37 points (72% compared to 35%). Today, that gap narrowed to 20 points (81% compared to 61%). However, as business and cost of living expenses continue to rise, both employers and employees rated inflation as their number one concern. Businesses are feeling pressured to increase wages and benefits while employees are concerned about mental health and well-being and finding a new job with better pay.\n\n“Employers are keeping a close eye on inflation, weighing the impact of rising costs of doing business with how much they can invest in talent – for both recruitment and retention. They’re looking at expenses and prioritizing salaries and benefits, when able,” says Amy Friedrich, president of U.S. Insurance Solutions at Principal. “Increasing costs have prompted businesses to get more creative in how they attract new talent and improve the employee experience as they boost hiring efforts.”\n\n\n______________________________\n\n\n1\n\nBusinesses with 500 to 10,000 employees.\n\n\n\n\n2\n\nBusinesses with two to 499 employees.\n\n\n\n\nBusinesses ramp up hiring, increase wages\n\nAmid the increased competition for talent, businesses are focused heavily on growing their number of employees. Compared to this time last year, significantly more businesses are increasing employees, with 53% increasing compared to 32% in March 2021. And on average, 36% of open positions at a company are brand new positions.\n\nLooking closer at job vacancy levels, small businesses are faring better t...