Gusto

Small businesses are increasingly offering retirement plans, leading to millions more workers having access than they did in 2019. This trend is driven by factors including state mandates and the need for small firms to stay competitive against larger corporations in the talent market. High-growth sectors include public administration, professional services, and finance.

Small businesses are increasingly using 401(k) plans—a benefit often associated with larger employers—to maintain competitiveness in attracting and keeping workers. Offering a 401(k) can act as an alternative to more expensive benefits and has been found to translate to roughly 8% fewer quits during the first year of employment.

Companies are increasingly grading employee AI use through systems like Gusto's five archetypes, though this practice has faced significant backlash. Companies such as Amazon, Uber, Duolingo, and Meta have either attempted or retreated from these tracking methods, with some facing lawsuits alleging unfair performance evaluation. Experts caution that rewarding AI usage is problematic because the goal of achieving better work remains subjective and varies by job.

Over 92% of US hires in May came from businesses with fewer than 1,000 employees, with small businesses gaining a larger share of hiring since the pandemic. Experts attribute this trend to differences in pandemic staffing, lean operations at smaller firms, and AI-driven growth in entrepreneurship.

Entrepreneurs are using AI to speed up new business creation, with Gen Z entrepreneurs leading the way, according to a report by Gusto. The report suggests that AI is playing a key role in accelerating business creation. This trend is particularly prominent among Gen Z entrepreneurs.

Gusto has reached $1B revenue, bringing it closer to public markets with an impressive milestone in actual revenue. The figure is notable as it reflects the company's current income rather than estimated future earnings. This achievement positions Gusto for potential future growth and consideration for public market listing.