Labor Day is traditionally the time we recognize the contributions American workers make to our economy. For small business owners, it’s also a good time to think about what employees need from their employers — and increasingly, the answer goes beyond a paycheck.
Employees are worried about retirement, emergency savings, debt, caregiving, career growth, and how technologies like AI may affect their futures. And while small businesses may not always be able to compete with larger companies on salary, there are other ways to create workplaces where employees feel supported and want to stay.
The Bank of America 2026 Workplace Benefits Report shows both the challenge and the opportunity. More than half of small business employees rate their financial wellness as good or excellent, yet many remain stressed about their finances. Employers are also grappling with retaining talent, staying competitive on compensation, and preparing workers for an AI-driven workplace.
To learn what small business owners can do, I talked to Mark K. Bennett, Managing Director, Business Banking National Growth Initiatives Executive at Bank of America.
What Employees Need Now
Rieva Lesonsky: The Bank of America 2026 Workplace Benefits Report shows that employees’ financial wellness has improved, yet more than half still say they’re stressed about money. What’s driving that disconnect, and what does it mean for small business employers?
Mark K. Bennett: What we’re seeing isn’t a contradiction so much as the fuller picture. Employees can make financial progress while still feeling pressure from forces outside their control, particularly inflation and broader economic uncertainty.
Among small business employees, 53% of employees at companies with fewer than 50 workers and 55% of those at companies with 50 to 99 employees say they have a positive sense of financial well-being today, according to the Bank of America 2026 Workplace Benefits Report. Yet economic pressures remain top of mind: inflation is the leading concern, cited by 70% of employees at businesses with fewer than 50 employees and 92% at those with 50 to 99 employees.
This is an important reminder that financial wellness and financial stress can coexist. Employees may be making progress toward their goals while still looking to their employer for support navigating economic uncertainty.
Lesonsky: Retirement savings remains employees’ top financial priority, but many small businesses don’t offer formal financial wellness programs. What are some practical, affordable ways smaller employers can better support their teams?
Bennett: For small business owners wondering where to focus first, retirement is a clear starting point: 70% of employees say saving for retirement is a top financial goal, and many want their employer’s help planning for retirement expenses.
The good news is that this doesn’t require adding new benefits. One of the biggest opportunities is helping employees better understand and use the resources already available to them. We’ve seen many business owners offer benefits employees aren’t aware of or don’t fully understand, so they haven’t taken advantage of them. Educating employees on what’s already available to them — retirement savings and beyond — can be one of the most cost-effective and impactful steps an employer can take to better support their teams.
Beyond communication, there are also resources that can extend an employer’s reach without straining the budget. Benefits like debt assistance and emergency savings support are both seeing rising demand from employees. In fact, four in 10 employees at businesses with fewer than 50 workers specifically want their employers to offer debt assistance. For owners ready to expand their benefits offering, these are practical, affordable places to start.
Competing for Talent Beyond Pay
Lesonsky: Beyond salary, what workplace benefits are having the biggest impact on attracting and retaining employees today?
Bennett: Benefits have shifted from a secondary consideration to a decisive factor in whether employees join a company and whether they stay: 39% of employees say a competitive benefits package is why they remain with their current employer, and among employers who successfully attracted talent in the past year, nearly half credit their benefit offerings as a leading factor.
For small businesses, two key benefits stand out to me. Caregiving support resonates with a large share of the workforce, with nearly three in five employees identifying as caregivers. Small businesses already have an edge here: 63% of caregivers at companies with fewer than 50 employees feel comfortable identifying as such at work. Pay advance programs are another standout: among small business employees, almost half at companies with 50 to 99 employees say they’d like their employer to add this benefit.
What makes these benefits effective isn’t their complexity; it’s that they meet employees exactly where their financial stress already is. For small businesses, these can be a powerful way to stand out in the talent market.
Lesonsky: Small business owners tell your survey they’re worried about retaining talent, staying competitive on compensation, and helping employees adapt to AI. How are those three challenges connected, and where should employers focus first?
Bennett: At their core, these challenges are connected by a common thread: they all shape whether people feel supported in their long-term success. Compensation and benefits work together to influence attraction, retention, and well-being. In fact, 58% of employers say their benefits package directly influences whether a candidate accepts a job offer, and employees cite competitive benefits as a top reason they stay. Helping employees adapt to AI is another way employers can invest in their workforce and prepare them for future success.
Of these, retention is the most pressing concern for small business owners. This year’s report found that more than one in three employees left or considered leaving their job in the past year, a slight increase from 2025. That’s why offering a clear, well-communicated benefits package that addresses what employees are already asking for is one of the most effective ways small businesses can both attract and retain talent today.
Lesonsky: For small business owners who can’t always compete with larger companies on pay, where can they create a competitive advantage when recruiting and retaining talent?
Bennett: Small businesses have the advantage of more personal connections. This plays out in the data: at businesses with fewer than 50 employees, 63% of working caregivers feel comfortable identifying themselves as a caregiver at work, compared to just 38% at companies with 50 to 99 employees. Even a slightly larger organization can offer similar benefits on paper, but it can’t replicate that level of day-to-day connection and trust.
For many small businesses, creating an environment where employees feel seen, supported, and connected can be as important as competing on compensation.
Listen to Your Employees
Lesonsky: As we celebrate Labor Day, what’s the one piece of advice you’d give small business owners who want to build a workplace where employees feel valued and want to stay?
Bennett: Ask your employees what they need, understand why it matters to them, and then act on what you learn. That single factor — listening closely and following through — can do more to build loyalty than any individual benefit or perk.
Employees at smaller businesses can feel financial pressure more acutely than peers at larger companies, and they are looking to their employers for support. About nine in ten employers who offer financial wellness programs report measurable returns in satisfaction, productivity, engagement and retention.
The report reinforces that pay is only part of the equation. Employers who hold on to their best people are not always the ones offering the biggest paychecks. They are the ones paying attention.
Lesonsky: If you could recommend one change every small business owner should make over the next year to better support employees, what would it be?
Bennett: Examine what your employees are actually asking for and compare it to what you currently offer. One of the best ways to support your employees is to identify where their needs and your offerings don’t align and then make targeted adjustments. The report highlights several areas where employees want additional support, from retirement planning resources to debt assistance and career development opportunities.
Career growth is another area worth evaluating. Among employers surveyed, 44% of those at businesses with fewer than 50 employees and 60% of those at businesses with 50 to 99 employees say career growth opportunities influence whether candidates accept or reject job offers.
Employees who feel their employer is actively responding to their needs, rather than offering a generic, one-size-fits-all package, will feel more supported and valued. For small business owners thinking about the year ahead, reviewing current offerings and closing the gaps they uncover is a strong place to start.
My Take
Small businesses may not be able to outspend larger competitors on salaries and benefits, but they can often out-listen them. Knowing what your employees need — and responding where you realistically can — is an advantage that’s difficult for a larger company to replicate.
That’s worth remembering on Labor Day — and every day.
Rieva Lesonsky is the founder of Small Business Currents, a content company focusing on small businesses and entrepreneurship. You can find her on Twitter @Rieva, Bluesky @Rieva.bsky.social, and LinkedIn. Or email her at Rieva@SmallBusinessCurrents.com.
Photo courtesy Getty Images for Unsplash+
