Job Quality

What is a Quality Job?

Amid a continuous trend of elevated costs for necessities, many U.S households are finding it increasingly difficult to cover typical household expenses.^[1] This financial strain has eroded the stability that jobs have historically provided, highlighting the critical importance of job quality in today’s economy.

But what does it mean to have a quality job? A quality job could mean access to good pay and employer-sponsored benefits, generous paid leave, and opportunities for career growth and advancement. This concept could also describe a positive company culture or safe working conditions. However, some of these attributes fail to consider whether working-class employees are participating or “taking up” these benefits that comprise the definition of job quality.

Benefit Participation Drives Employee Retention

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The Lafayette Square Institute emphasizes job quality components such as core benefits participation and the strategies and supplemental resources to increase core benefit participation. Workplace benefits are essential, providing measurable and impactful support that benefits both employees and employers. Beyond wages, employee benefits remain a primary way to support workers, increase retention, and reduce turnover. Nearly half of employees consider leaving their jobs due to confusion or dissatisfaction with benefits, while 78% are more likely to remain if they are satisfied with benefit offerings.^[2]
However, the focus often remains on the availability of benefits rather than employee participation. For employers, encouraging benefits participation is a critical indicator of job satisfaction and retention. Of employees who are not enrolled in employer-sponsored retirement benefits, 63% are likely to leave within a year.^[3]

Benefits Participation Gaps for Small Businesses and Lower-Income Earners  

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Despite the importance of benefits, there are notable disparities in medical and retirement participation for small businesses (companies with less than 500 employees) and low-to-moderate income^[4] (LMI) workers. These groups experience higher turnover rates^[5] and lower benefits participation, posing significant challenges for job quality across large segments of the workforce. In 2022, over 62 million Americans were employed by businesses with headcounts fewer than 500 in 2022^[6] and 91.6 million (27.3%) Americans are considered LMI.^[7]

From 2022 to 2024, small businesses (fewer than 500 employees) participated in medical and retirement benefits at lower rates than larger companies.^[8]

The disparity in benefits is more pronounced across different income groups. In 2024, the lowest quartile of earners participated in medical and retirement benefits at rates much lower than higher earners.