Study By Principal Financial Group Reveals U.S. Businesses Are Prioritizing Employee Well-Being as They Look to Rebuild
Principal releases quarterly Principal Financial Well-Being IndexSM
Principal Financial Group announced the findings of its quarterly Principal Financial Well-Being IndexSM (WBI). In its seventh edition, the results showcase how businesses have responded to the disruptive effects of COVID-19 since the last quarterly pulse was released in June.
HR Technology News: TecHRseries Interview with Ethan Winchell, Co-founder and COO at Truework
“However, given the remarkable resilience of the small business community, I believe more companies will return to grow within the next 6-12 months. The findings of this quarter’s study highlight the optimism small and medium-sized businesses feel about what’s to come.”
Businesses are slowly recovering, and optimism is generally on the rise
The financial situation of U.S. businesses is slowly starting to show signs of recovery. Compared to June, more businesses are growing1. Among those businesses with fewer than 500 employees, 42% said they are expanding their operations, compared to 34% in June.
Confidence is on the rise2. Forty-four percent of businesses with fewer than 500 employees are optimistic regarding the overall economic outlook for the next 12 months. And 83% of businesses would not consider filing for bankruptcy due to the impacts of COVID-19.
Despite the outlook for growth, some concerns remain. While cash flow is steady, businesses are continuing to react to the economic impacts of COVID-19 by looking for ways to cut budget, reducing investments in the business, and in some instances, using their personal finances to support the company.
HR Technology News: Weave Workforce Launches Innovative Workforce Optimization Website
Nearly two-thirds of study participants anticipate it will take a year for their business to fully recover from the economic impacts of the pandemic. To do that, they say their top objectives for the next 12 months include increasing revenue, growing their customer base, improving customer satisfaction, and offering new products or lines of service.
“The road ahead will continue to be bumpy for many small businesses,” said Amy Friedrich, president of U.S. Insurance Solutions for Principal. “However, given the remarkable resilience of the small business community, I believe more companies will return to grow within the next 6-12 months. The findings of this quarter’s study highlight the optimism small and medium-sized businesses feel about what’s to come.”
HR Technology News: TecHRseries Interview with Mehdi Daoudi, CEO and Co-Founder at Catchpoint