Workplace financial benefits boost retention, survey finds

Morgan Stanley at Work has released survey findings showing that workplace financial benefits are a major driver of employee engagement and retention. The study also points to rising demand for financial guidance as cost pressures and job market uncertainty persist.

Based on responses from 1,000 employed adults in the United States and 600 HR leaders, the research found a broad link between financial well-being and workplace performance. Four in five HR managers said they worry employees' financial issues hurt productivity. In contrast, 53% said benefits that reduce financial stress matter most to job satisfaction, ahead of mental or emotional support at 26% and physical wellness benefits at 19%.

Employees reported similar strain. More than half, or 56%, said financial stress negatively affects their work, while 61% said concerns about inflation and recession have led them to reduce contributions to workplace benefits.

The findings suggest employers are under pressure to make benefits more relevant to workers' immediate concerns as retention becomes a bigger management issue. Among HR executives surveyed, 65% said hiring and retention is their company's top strategic financial priority for 2026, up six percentage points from a year earlier. Investment in technology ranked second at 43%.

Planning gap

The study also identified a gap between the benefits offered and employees' understanding of how to use them. Nearly four in five employees (79%) said their company needs to do a better job of helping them understand how to maximise the financial benefits available to them.

Demand for practical support was clear across several areas of personal finance. Almost three in four employees (73%) said they need to accelerate their financial planning efforts, while 84% reported facing financial issues in the past year. The most common were budgeting at 39%, setting financial goals at 35% and retirement planning at 34%.

Better targeted support could directly affect loyalty. Some 85% of employees said they would feel more invested in their company if it offered financial benefits tailored to their needs, and 91% said they would consider changing jobs for benefits that help them reach their goals.

Scott Whatley, Head of Morgan Stanley at Work, outlined the firm's interpretation of the results.

"Our 2026 insights show employees continue to turn to their employers for support with personal financial needs, and employers help meet those needs through a full spectrum of workplace financial benefits," Whatley said.

"Companies that invest in comprehensive offerings that include financial planning and education are better positioned to support productivity, strengthen engagement and retain talent in an environment where needs and expectations continue to grow."

Equity focus

Equity compensation emerged as one of the clearest areas of alignment between employers and workers. Three-quarters of employees and 85% of HR leaders said it is the most effective tool for motivating employees.

Views differed slightly on why equity matters most. Employees most often cited its main benefit as helping them meet long-term investing goals, such as retirement, at 28%. HR leaders were more likely to point to giving workers a stake in company success, at 33%.

Even so, many employees want more support in using such awards. Nearly half (48%) of employees at companies offering equity compensation said they want more help maximising those benefits.

Kate Winget, Chief Revenue Officer of Morgan Stanley at Work, said the findings show employees attach long-term value to equity awards.

"Equity compensation continues to resonate as a meaningful driver of motivation, and employees understand equity as a way to unlock long-term value for their personal financial goals," Winget said.

"This presents a powerful opportunity for employers to link employee motivation and engagement with company success, and education is key in forging this connection."

Retirement support

Retirement planning was another prominent theme, with workers placing great importance on professional guidance. Among employees, 95% said retirement planning assistance from financial professionals is important when deciding where to work, and 51% described it as a top or high priority.

When asked what kind of retirement support they valued most, 46% chose goals-based investing, 45% selected retirement income solutions, and 43% pointed to access to a financial adviser.

That emphasis on advice comes despite broad access to retirement schemes, suggesting employers may need to focus less on availability and more on helping staff use what is already in place. Jeremy France, Head of Institutional Consulting Solutions at Morgan Stanley, said guidance is becoming central to how workers assess benefits.

"Retirement planning has an outsized influence on how employees evaluate their workplace benefits," France said.

"While access is nearly universal, employees increasingly expect guidance, particularly from financial professionals, to help translate participation into long-term financial confidence. Employers that deliver holistic retirement support can create a meaningful advantage in attracting and retaining talent."