Morgan Stanley at Work issued new data from its fifth annual State of the Workplace Financial Benefits Study.
Amid heightened concerns around inflation and the economy—including fears of a possible recession—the data reveals that companies and employees alike are feeling increased pressure. As financial stress rises, this research underscores the strategic importance of workplace financial benefits both as a perceived safe port in the storm and as a key support for financial outcomes for employees and strategic employment priorities for organizations.
Key findings include:
- Financial stress rises and employers are taking notice: Two thirds (66%) of employees say financial stress is negatively affecting their work and personal life, up 4 percentage points since 2024. And 83% of HR executives are worried their employees’ personal financial issues are affecting productivity, up 5 percentage points.
- Employees are asking for more help: Over eight in 10 employees (84%) believe their employers should more actively assist them with their financial issues, up 3 percentage points since 2024, and strongest among Gen Z (95%, vs. Millennials: 87%, Gen X: 80% and Baby Boomers: 66%).
- Benefits like financial planning help move the needle for employees: 81% of employees feel they must accelerate their financial planning efforts to make up for lost time, while 67% of HR executives agree that help with financial planning is essential to help employees meet their personal financial goals. Almost all employees (90%) believe workplace financial benefits are essential to reach their personal financial goals—and they especially value help with retirement preparation, financial planning and maximizing equity compensation.
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“We stand at a unique inflection point, as significant shifts in the wider economy create a ripple effect in HR and employee attitudes around their approach to workplace financial benefits,” said Scott Whatley, Head of Morgan Stanley at Work. “As we navigate a volatile economic landscape and fluctuating employee expectations, our latest study underscores the power of financial benefits packages to align business goals with employee needs—ultimately enhancing overall workplace satisfaction, productivity and stability.”
Additionally, the findings highlight how companies are folding financial benefits into wider strategic goals:
- Financial benefits also support company goals, as they focus on retention and technology: 59% of HR executives say hiring and retention is their company’s top strategic financial priority for 2025, followed by technology investment. In fact, 82% of HR execs report taking proactive steps towards integrating generative AI into their HR workflows.
- Workplace financial benefits deliver staying power: When it comes to retention, HR execs say benefits that reduce financial stress have the most influence on employee job satisfaction. At the same time, 81% worry employees will seek other job opportunities if their company can’t offer benefits to help better manage their financial stress. In fact, nine out of 10 (91%) employees agree, saying they would feel more invested in staying at their company if it offered financial benefits that met their specific needs. Companies can maximize the impact of their benefits by connecting with employees’ top personal financial priorities—which, in 2025, are building up savings, investing for the long-term and paying down debt.
- HR and employees agree more can be done: Companies may want to carefully consider how their financial benefits and education programs align with key employee needs—80% of HR executives received employee requests for a specific type of financial benefits support that their company does not currently offer. With workplace financial benefits essential for meeting company and individual financial goals, both HR executives (93%) and employees (85%) overwhelmingly agree that their companies still need to do a better job helping employees understand and maximize the financial benefits available to them. This can be especially important at key moments such as a corporate liquidity event or tax season.
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“Since the workplace is often the first entry point for many employees to build financial security, nailing the workplace benefits user experience and providing effective education remains key—not just for the employee, but for the company,” said Kate Winget, Chief Revenue Officer of Morgan Stanley at Work. “This research shows a direct tie between workplace financial benefits and employee retention, driving home the insight that even amid economic uncertainty, the financial outcomes of companies and their employees are inextricably linked. Financial benefits are a pathway forward.”
Additional details are available in Morgan Stanley at Work’s State of the Workplace Study here. As part of a series of findings from Morgan Stanley at Work’s fifth annual study, the business will also publish its findings on equity benefits and retirement benefits in the coming weeks.
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Source: Businesswire
