Increasing cost pressures have greatly influenced the employment policies of SMBs in the country, based on the findings of MetLife’s 2026 U.S. Employee Benefit Trends Study. Employers with less than 1,000 employees cite rising healthcare costs (72%) and total business costs (68%) as key concerns, and thus healthcare cost control is their leading benefit objective. At the same time, 89% of employees report financial stress from living and healthcare expenses, contributing to declining overall wellbeing and engagement.
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“Small and mid-sized businesses are feeling cost pressures from all sides, often with fewer buffers than large employers, while employees are dealing with rising costs in their personal lives,” said Bradd Chignoli, Head of Regional Business at MetLife. The study also highlights the rise of “job hugging,” where employees remain in roles out of necessity rather than engagement, with nearly two-thirds citing financial reasons for staying. Despite constraints, SMBs see potential returns of $2.20 for every $1 invested in employee health and are increasingly adopting voluntary benefits to balance cost control with workforce support. “SMBs don’t need to outspend large employers to compete,” Chignoli added.
