Money rain.Workers are feeling financially stressed, and they believe their employers should do more to help them alleviate that stress. Employers, however, are more focused on providing long-term rather than short-term financial support, the 2025 Benefits & Beyond study from Prudential found.
“The workplace is at a critical juncture, and employee benefits are at the center of the shift,” the report said. “It’s much like it was during the post-World War II era, when companies recognized the value of employee wellbeing, and the early 2000s, when they adapted to attract tech talent. Today, employers face a similar choice: Listen to the evolving needs of their workforce or risk falling behind.”
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Employees’ top challenges are saving for retirement (45%), cost of everyday goods (44%), cost of housing (29%) and making it paycheck to paycheck (26%). Many employers recognize that workplace benefits aren’t adequately addressing employees’ day-to-day stress. Although three-fourths of employers believe their benefits help with retirement savings, only 35% believe they assist with immediate financial stresses, such as everyday expenses.
“The study’s findings are clear: When it comes to workplace benefits, there is a disconnect on what companies offer and what employees actually need -- now and in the future,” the report said. “The study finds that 86% of employers think their benefits are modern, while only 59% of employees agree.”
With a backdrop of economic uncertainty, shifting expectations and evolving social norms, today’s employees expect holistic support from employers to help solve the challenges they face. They seek modern benefits that offer flexibility and financial support, and prioritize their overall wellbeing. Beyond pay, employees want their employers to provide benefits that reflect the real needs people are facing today. This includes benefits that help people balance their personal lives and address what happens outside of work, with employees considering flexible benefits such a four-day workweek (41%) and pet care leave (23%) as optimal.
“Employees want benefits that go beyond traditional coverage and more completely address how they live and work,” said Michael Estep, president of Prudential Group Insurance “The workplace is at a tipping point, and there’s so much at stake for employers. When benefits are aligned with your company’s values and workforce needs, they become a powerful driver of culture, business performance and long-term growth.”
Although almost all employers (97%) say wellbeing is a priority, only 7 in 10 employees (69%) agree their employers feel this way. The research identifies opportunities for employers to help solve worker challenges, including retirement savings, making it paycheck to paycheck, job security and flexible work arrangements.
“Effective communication and awareness are needed to better demonstrate commitment to employee wellbeing and highlight how benefits can meet each person’s unique needs,” Estep said.
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Alan Goforth
Alan Goforth is a freelance writer in suburban Kansas City. In addition to freelancing for several publications, he has written a dozen books about sports and other topics.
