Safety Perception Gap Between Small Business Employers and Employees

• By: AnneMarie McPherson Spears
• October 20, 2025

Small business employers and employees have differing perspectives on key workplace safety priorities, according to the “2025 Small Business Employee Voice on Workplace Safety Report” from Pie Insurance. The report follows up on a Pie study released in April that surveyed small business owners and decision makers.

More than 2 in 3 small business employees have safety concerns at work, Pie’s latest study found. Further, 58% witnessed workplace injuries in the past year, and 45% of those who witnessed injuries said they could have been prevented. Meanwhile, another 43% report feeling pressured to work through unsafe conditions to meet deadlines.

While 63% of employers said they provide structured safety training, only 29% of employees report receiving it regularly—and 28% say they have never received formal workplace safety training. And although 44% of employers say they are actively using AI to improve safety and enhance productivity, only 20% of employees are aware of it. Further, while 64% of employers believe AI improves safety, only 23% of employees agree.

Mental health continues to emerge as a primary safety concern among both employers and employees. Mental health-related injuries were the most common small business injury at 22%, according to Pie’s survey of employers. Nearly half (45%) of employers view mental health as the most significant safety risk, and 39% believe underestimating mental health risk is the most dangerous workplace safety issue today.

Similarly, 32% of employees cite mental health as their primary workplace safety worry—above physical injury at 20%, environmental hazards at 9% and equipment safety at 4%.

However, while 91% of small business employers say they’re confident in their ability to address mental health issues, only 62% of employees shared that confidence in their employers. Small business employees also report that mental health concerns follow them home, with 36% saying that workplace stress affects their personal lives, contributing to reduced motivation, increased anxiety and trouble sleeping.

When asked what safety solutions they want, 19% of employees cited flexible work hours or remote options. Another 17% said they wanted mental health allowances, and 22% want more participation in safety-decision making.

The report also found opportunities to bridge communication gaps. Although 83% of employees say they feel comfortable reporting safety concerns, 17% said they hesitate to speak up. Of those, 35% fear retaliation, 33% don’t want to seem difficult, and 31% doubt that action would be taken.

“What I find most meaningful about this data is that it shows the gap between what employers think they’re providing and what employees actually experience, and that’s where the real opportunity lies,” said Carla Woodard, senior vice president of claims at Pie Insurance. “Small businesses that close this divide by genuinely engaging employees in safety decisions won’t just prevent injuries, they’ll build modern safety cultures that attract top talent and deliver measurably safer outcomes. That’s the kind of competitive advantage you can’t buy.”

AnneMarie McPherson Spears is IA news editor.