Small businesses may now face a new challenge with holding onto their employees as employee loyalty shows signs of eroding, according to a new survey.
The survey, by MetLife, found that only 44 percent of small business employees said they felt a strong sense of loyalty toward their employers, compared to 62 percent in November 2008. Thirty-four percent of the small business employees who were surveyed last year for the study indicated they would like to work for a new employer. However, 54 percent said they believe their employees still feel a strong sense of loyalty.
The study also found that 77 percent of small business employers do not plan to offer financial or retirement planning seminars within the next 18 months. Seventy-five percent of the small business employees admitted their productivity has been affected by personal monetary issues and said they would be interested in learning how to address issues that cause financial stress.
Only 16 percent of the Baby Boomers who work for small businesses said that they are on track to achieve or have already achieved the right retirement outcome, according to the survey. Sixty-two percent of the Baby Boomers who work for small businesses said they are very concerned about outliving their savings, and 59 percent are very concerned about having to work either full- or part-time in retirement.
Only 29 percent of this demographic feel very confident about their ability to manage their money in a 401(k) or 403(b) plan, and yet these plans are more common at small businesses than traditional pension plans. Only 19 percent of small business employers say they offer a defined benefit pension plan, while 61 percent offer a 401(k) plan.
