Homebase, a platform utilizing AI for small business payroll, team management, and hiring, has published its 2026 Local Workplace Pulse report, derived from a survey of 1,250 small business owners, managers, and hourly employees, which explores factors contributing to employee pride, job retention, and the integration of artificial intelligence into operations, coinciding with its third-annual Top Local Workplace Awards.
The research and awards collectively aim to illustrate the elements necessary for constructing small businesses that maintain hourly worker engagement and enthusiasm, particularly amidst economic uncertainty and a competitive job market.
Key findings from the 2026 Homebase Local Workplace Pulse indicate that pride in working for small businesses remains strong. Approximately 86% of surveyed hourly employees express pride in their small business roles, with nearly two-thirds (62%) not planning to seek new employment within the next three to six months. Among owners, 55% report feeling financially more secure than a year prior, and 97% affirm the importance of small businesses to local communities, a 14 percentage point increase from 2024.
While compensation is a primary factor in job selection, community plays a crucial role in workplace satisfaction. Hourly employees ranked pay as the top consideration for staying in or taking a new job (80%), nearly double the percentage from 2024. However, when defining a great workplace, a strong sense of team and community was the top factor for 60% of employees. The most successful small business owners, including those recognized by Homebase’s Top Local Workplace Awards, reportedly offer both financial stability and a strong community environment.
When presented with equal pay, hourly workers demonstrate a significant preference for small businesses, being nearly five times more likely to choose them over large corporations. This preference is largely driven by the relationships they form (47%) and the flexibility small businesses often provide (45%). The data also suggests that loyalty deepens with tenure; employees with five or more years at a small business are 50% more likely to express deep pride compared to those in their first six months.
Artificial intelligence adoption is on the rise among small business owners and managers, with nearly 75% (72%) currently utilizing or piloting AI tools, an increase from 65% in June 2025. Owners anticipate the biggest benefits from AI implementation to be task automation (47%), improved customer support (45%), and enhanced communication (42%). By automating repetitive tasks, owners can allocate more time to team development, fostering the community environment employees value.
John Waldmann, Co-founder and CEO of Homebase, stated, “Small businesses are where work becomes personal. You’re not just another employee, but part of a team, a community, and a place that knows your name. Our latest data shows just how strong that pride still is, and our Top Local Workplace Awards bring it to life, recognizing the owners who are building cultures where people feel valued, connected, and excited to show up. These teams are proving that when you invest in people, you create workplaces where people choose to stay and grow.”
The 2026 Homebase Local Workplace Pulse is based on a third-party survey conducted in April 2026, involving 1,250 small business employees over 18 in the United States, across various industries including food and beverage, retail, healthcare, construction, education, manufacturing, and hospitality. Comparisons were drawn from Homebase’s 2024 Small Business Fulfillment Index, which surveyed 1,290 active Homebase customers in March 2024. The Top Local Workplace Awards methodology involved a proprietary scoring system that evaluated over 150,000 businesses within the Homebase network, analyzing more than 1 billion data points.
Homebase is an AI-powered platform designed for hourly teams, offering solutions for employee scheduling, time clocks, payroll, hiring, communication, and HR. Over 150,000 small businesses use Homebase to streamline operations. The platform tracked more than 1 billion hours for over 3.5 million workers in the past year. Homebase has received recognition as a 2024 Fast Company’s Brands That Matter, a 2025 Webby Award winner, and a 2025 Fast Company’s Most Innovative Workplaces North America winner. It has also been cited for its payroll services by USA Today (2024), CNN Underscored (2024), and U.
S. News & World Report (2025). Homebase operates from San Francisco, Houston, Denver, and Toronto, and is supported by investors including L Catterton Growth, Emerson Collective, Notable Capital, Bain Capital Ventures, Khosla Ventures, Baseline Ventures, Cowboy Ventures, Bedrock Capital, and PLUS Capital.
