Lily Peterson, Managing Editor, BenefitsPRO
Financial stress continues to weigh heavily on American workers, with 66% of employees saying financial stress is negatively affecting their life, according to a new report from Morgan Stanley at Work. In return, 83% of employers, specifically HR execs, are worried that this financial stress is compromising workplace productivity.
“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," said Scott Whatley, Head of Morgan Stanley at Work.
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Eight in 10 employees believe employers need to step in and actively provide financial solutions. Gen Z (95%) strongly believes in this sentiment, followed by millennials (87%), Gen X (80%) and finally boomers (66%). While employees struggle with financial planning, 67% of HR execs think they need to help employees with their financial planning in order to help workers meet their financial goals. Further, 9 in 10 of employees "believe workplace financial benefits are essential to rather their person financial goals."
“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.
Supporting employees' financial journey can support broader company goals like retention, with 59% of HR execs saying hiring and retention is their company's top financial priority for 2025. However, 81% worry that employees will leave the company if the financial benefits don't meet their needs.
Employees agree with this sentiment with 91% saying they would be more invested with their company if their financial wellness benefits aligned with their needs. A strong majority of HR executives (93%) and employees (85%) feel their companies need to improve how they help employees utilize financial benefits.
"You can identify the gap if you do a financial wellness needs assessment," Rodney Bolden, Executive Director, Head of Industry & Learning at Morgan Stanley at Work, told BenefitsPRO. However, Bolden argues that it goes further than just asking where your employees are at and what they need. "If you are not desegregating the data by geography, pay level, gender, veteran status, everything that you can think of, you're going to miss certain nuances to that data," Rodney said.
By addressing these unique financial needs and effectively communicating available financial benefits, companies can alleviate their employees' financial stress and build a stronger and more engaged workforce.
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