2026 Benefits Benchmarks for Small Companies

Employee benefits have long been one of the most effective ways for small companies to attract qualified candidates and retain valued employees, all while working within limited budgets.

Today, those decisions are becoming more difficult. Rising healthcare costs, changing regulations, and high expectations from employees make it harder for employers to offer competitive benefits while keeping costs under control.

For companies with fewer than 100 employees, costs can rise quickly, and even small changes can affect both the bottom line and employee experience.

As you evaluate where to invest your benefits dollars and how to stay competitive, seeing how other small companies are designing their benefits programs can provide helpful context.

Below, we've highlighted key findings from PeopleLoop's 2026 Benefits Benchmarking Report to show how small employers are approaching healthcare, leave, retirement, and wellbeing benefits today.

Healthcare Benchmarks

Small employers continue to look for practical ways to manage healthcare costs without making major changes to their benefits programs. Many are focused on improving affordability while taking a measured approach to new cost-management strategies.

Health plan priorities: For 43% of employers, lowering healthcare costs is the top priority. At the same time, 41% said none of the priorities included in the survey reflected their current focus, suggesting many businesses have yet to establish a defined healthcare strategy.

Cost-reduction strategies: Although rising healthcare costs remain a concern, many employers are taking a measured approach rather than adopting broad cost-cutting initiatives. Fifty-seven percent reported using none of the strategies included in the survey, such as eliminating plans, ending certain programs, or expanding voluntary benefits.

Affordability strategies: More employers are taking steps to make healthcare more affordable for employees. The percentage of companies implementing affordability initiatives increased from 26% in 2025 to 49% in 2026. Lowering employee premium contributions was the most common approach, rising from 21% to 37% year over year, showing that employers are placing greater emphasis on reducing employees’ out-of-pocket costs.

Pharmacy clinical management: Most small employers are starting with straightforward pharmacy management approaches before adopting more advanced programs. Preferring generic medications and biosimilars is the most widely adopted approach at 21%, while more targeted management tools, such as utilization controls for GLP-1 medications  for weight loss, are used by only 9% of employers.

Fertility benefits: Fertility coverage is still uncommon among smaller employers. Seventy-seven percent don’t offer fertility benefits, while 17% provide more comprehensive coverage. For some employers, these benefits help attract employees and strengthen their overall benefits package, suggesting many businesses have yet to establish a clear strategy.

Leave Program Benchmarks

Most small companies are maintaining their current leave programs while concentrating on compliance, administration, and consistent policy management rather than expanding benefits.

Policy drivers (next 12 to 24 months): Regulatory requirements remain the leading influence on leave policies at 43%, followed closely by employee expectations (38%), budget considerations (34%), and hiring and retention goals (32%).

Challenges: For many employers, managing leave efficiently is a bigger challenge than designing the policies themselves. Compliance is the top challenge at 57%, followed by coordinating leave programs (50%), and accurately tracking leave (49%).

Program changes: Most employers expect little change to their leave offerings over the coming year. Only 9% plan to expand leave benefits, while 3% anticipate reducing them.

PTO and parental leave: Paid time off and parental leave have become standard benefits for most small employers. PTO is offered by 100% of companies, while 93% provide parental leave. As a result, employers are finding opportunities to stand out through policy design and employee experience rather than simply offering the benefit.

Retirement Plan Benchmarks

Retirement benefits remain consistent across small employers, with many organizations choosing straightforward plan designs that encourage participation while keeping administration manageable.

Plan design: Roth contribution options are now available in 90% of retirement plans. Additional features, such as after-tax contributions and self-directed brokerage accounts, are each offered by 30% of employers, reflecting gradual enhancements rather than more complicated plan structures.

Tenure requirements: Most employers make retirement benefits available early. Sixty-six percent allow employees to participate immediately upon hire, while another 15% provide access within the first month of employment.

Matching contributions: Employers continue to favor simple, easy-to-understand matching formulas. Fifty-three percent offer an employer match, and just over half of those plans (51%) use a safe harbor matching structure.

Match effective rate: Employer matches remain concentrated around familiar contribution levels. Thirty-nine percent of plans provide a 4% effective match, while 29% offer a 3% effective match.

Automatic enrollment: Automatic enrollment rates have remained relatively stable, but default contribution percentages continue to increase. The share of plans setting default contributions above 6% rose from 11% to 28%, encouraging employees to save more from the beginning of their employment.

Wellbeing Benefits Benchmarks

When it comes to wellbeing, small employers are generally maintaining programs that are easy to administer while making only modest additions where budgets allow.

Program adjustments: Most employers are keeping their current wellbeing offerings in place. Eighty-one percent reported no planned changes, while 15% said they expect to add a limited number of new programs.

ROI metrics: Employers most often evaluate wellbeing initiatives through employee feedback and participation. Employee feedback is the leading measure at 74%, followed by participation and utilization rates at 69%.

Wellbeing benefits categories: Emotional wellbeing remains the most commonly offered type of support, with 59% of employers providing these resources. However, one-third of employers reported offering none of the wellbeing categories included in the survey, indicating there is still room for many organizations to expand employee support.

Compare Your Benefits Strategy to Your Peers

Want to go deeper into the benchmarks and see how your strategy compares to other small employers? Connect with a PeopleLoop consultant to benchmark your benefits program.