Absolutely, because they know that by doing that they will attract more and retain the ones who are there. It's very expensive to hire and train new people, so you're going to do everything you can to keep the good people you already have at your organization.
Part of that is about being flexible when you need to be flexible. There are many stories you hear from small business owners about that, and also from their employees, who talk about going through a tough time and how their employer helped them through it. There are many of these stories, and often it's not just that they know their employees, but that their own family members are working for them. There's a combination of that, and they become a family. I would suggest that smaller companies are already doing quite a bit on the flexibility front. It's just not formalized.