What the SHRM 2026 Employee Benefits Survey Means for Small and Midsize Businesses

The Society for Human Resource Management just released its 2026 Employee Benefits Survey, and if you run a small or midsize business, the numbers are worth your attention. Based on data from nearly 5,500 U.S. organizations, the report paints a clear picture: employee benefits are no longer a line item on a spreadsheet. They are a competitive strategy — and the companies that read the signals early will have an easier time attracting talent, controlling costs, and retaining the people who keep the doors open.

Here is what the data says and what it means for your business.

Are Healthcare Costs Still the Top Concern for Employers?

Yes — and it is not close. For the fourth year in a row, employers rated medical benefits as the most important benefit offering, with 88% calling them “very important” or “extremely important.”

But the way employers are paying for healthcare is shifting. The share of organizations offering fully insured health plans dropped from 70% to 67%, while self-insured plans rose from 27% to 29%. That movement reflects a broader push toward cost control. Self-insured plans can offer more flexibility and lower long-term costs, but they also introduce risk and administrative complexity that many small businesses are not equipped to manage on their own.

At the same time, employers are investing more in preventive care. Offsite fitness center reimbursements and equipment subsidies grew five percentage points. Annual health risk assessments and health fairs rose four. And as GLP-1 medication coverage edges toward becoming standard practice, wellness programs may soon shift from a nice-to-have to a baseline expectation.

What this means for you: If you have not looked at your health plan structure in the last two years, now is the time. A benefits audit can help you figure out whether your current setup is actually serving your workforce — or just draining your budget.

Are Employers Pulling Back on Retirement Benefits?

Retirement benefits remain a high priority, tied with leave at 82% importance. Traditional 401(k) plans are still the most common offering at 90%, and Roth 401(k) availability has grown eight percentage points since 2022.

But the survey flagged a concerning trend: employer 401(k) match participation dropped from 85% in 2025 to 81% this year. Average maximum employer matches also decreased slightly for both traditional and Roth plans. Retirement education spending fell 3%.

One bright spot: employer matches for 529 college savings plans jumped from 1% to 5%. Under the SECURE 2024 provision, certain unused 529 funds can now roll into a Roth IRA — making this a relatively low-cost benefit that appeals to employees managing education costs for themselves or their families.

What this means for you: If your match participation is slipping or your retirement education has gone quiet, you may be falling behind without realizing it. A benefits review can help you benchmark your offering against what peers are doing.

Is Paid Parental Leave Becoming a Must-Have?

Parental and family leave saw some of the sharpest increases in the entire survey. The data shows that offering paid family leave can increase mothers workforce participation by 25% after birth — making it not just a family-friendly perk, but a talent pipeline strategy.

As more states enact mandatory paid family and medical leave laws, employers who have not reviewed their policies may find themselves behind the curve. What was once a differentiator is quickly becoming a baseline expectation.

What this means for you: If you are hiring — especially in a competitive market — your parental leave policy is part of your pitch. It signals that your company invests in people beyond their desk hours.

Are Benefits Expanding Beyond the Employee?

The survey shows a clear trend: benefits are extending to family members, including the four-legged ones. Pet insurance offerings grew from 22% to 27%. Elder care services and information rose from 7% to 11%, reflecting the growing caregiving demands of an aging population.

These tend to be relatively low-cost benefits, but they send a strong message: your company sees the whole person, not just the role they fill.

What this means for you: Look at your workforce demographics. If you have a significant number of employees with caregiving responsibilities — whether for children, aging parents, or pets — these are low-investment, high-impact additions to your benefits package.

Is Flexible Work Disappearing?

Not exactly. While some flexible work benefits saw slight declines in employer importance ratings, the broader trend suggests flexible arrangements remain a meaningful differentiator. Employers that offer remote or hybrid options continue to use them as a recruiting and retention tool.

The message is not that flexible work is going away. It is that employers are getting more intentional about how they offer it — structuring it in ways that align with business needs while still meeting employee expectations.

What this means for you: If you have not formalized your flexible work policy, now is the time. A clear, consistent policy helps you compete for talent without creating ambiguity about expectations.

Are AI Tools the Fastest-Growing Employee Benefit?

By the numbers, yes. Employer-sponsored subscriptions to AI tools surged from 16% in 2025 to 33% in 2026 — the largest single-year increase in the survey.

But there is a catch: while AI access is expanding rapidly, formal skills training dropped 7%. That gap creates risk. Giving employees AI tools without teaching them how to use them safely and effectively can lead to mistakes, security issues, and missed opportunities.

What this means for you: If you are rolling out AI tools to your team, pair the access with training. A simple skills workshop or a set of acceptable-use guidelines can make the difference between AI becoming a productivity multiplier and AI becoming a liability.

How Are Companies Changing Professional Development?

HR teams are shifting from classroom-style training to on-the-job coaching. Formal skills training dropped 7%, professional membership funds fell 6%, and license renewal fee coverage decreased 5%. But executive and leadership coaching grew from 47% to 55%.

Student loan repayment benefits also showed steady growth, with company-provided repayment rising from 8% to 10% and the average maximum reaching $5,546.

What this means for you: If your training budget feels stretched, consider redirecting a portion toward leadership coaching or student loan assistance. These benefits often deliver stronger retention outcomes than traditional professional development programs.

The Bottom Line for Small and Midsize Businesses

The SHRM 2026 data makes one thing clear: the benefits landscape is shifting faster than many SMBs realize. Healthcare costs continue to climb. Retirement contributions are slipping. Parental leave and family benefits are becoming table stakes. AI tools are surging. And professional development is evolving from classroom to coaching.

You do not need to adopt every trend. But you do need to know which ones matter most to your workforce — and have a plan to act on them.

A benefits review is not just an HR exercise. It is a business strategy conversation. The right mix of benefits can help you control costs, attract better candidates, and keep your best people engaged for the long haul.

At Trek Insurance Solutions, we help businesses navigate the benefits landscape with solutions tailored to their team needs. Whether you are rethinking your health plan structure, exploring voluntary benefits, or looking for ways to strengthen your retirement offering, we are here to help you find the right path.

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