Market Trends

State of the Workplace 2025 Financial Benefits Study

Discover new ways to enhance talent attraction and retention amid rising economic uncertainty.

Our annual State of Workplace Financial Benefits Study explores how employees and HR executives view workplace benefits and equity compensation, helping to uncover strategies employers can adopt to enhance talent attraction and retention.

 

This fifth iteration of our annual study reinforces and expands upon many of the financial themes that have shaped the study since its inception. Amid heightened concerns around inflation and the economy, workers are struggling under a growing burden of financial stress and increasingly believe their employers should provide active financial assistance. Yet, despite the rising priority HR leaders place on talent attraction and retention, gaps remain when it comes to providing employees with the full range of workplace financial benefits, education and support they seek.

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.
Scott Whatley
Head of Morgan Stanley at Work


As economic uncertainty rises, 81% of employees feel they must accelerate their financial planning efforts to make up for lost time, up from 78% in 2024.1 This has elevated the strategic importance of workplace financial benefits to both provide a safe port in the storm and to help drive financial outcomes.

 

In addition to seeking greater assistance with retirement planning and financial advice, employees are turning toward equity compensation as a key motivator and financial ballast. In response, companies are taking steps to maximize the impact of their benefits by connecting with employees’ top personal financial priorities, which, in 2025, include meeting long-term investing goals such as retirement, building up savings and paying down debt.

 

To unlock the full potential of their workplace financial benefits, however, employers still need to do a better job helping employees understand and maximize the financial benefits available to them. Approached strategically, this can help employees to build financial security—ultimately enhancing workplace satisfaction, productivity and stability. 

Financial Benefits Help Fuel Retention

According to this year’s survey, 66% of employees say financial stress is negatively affecting their work and personal life, up 4% since 2024.2 HR leaders are taking note, with 83% worried that their employees’ financial concerns are affecting workplace productivity.3 To turn this tide, employers are aiming to introduce benefits that help reduce financial stress—a move that may also help them strengthen hiring and retention, which HR leaders rank as their top strategic financial priority for 2025.

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91% of employees say they would feel more invested in staying at their company if it offered financial benefits that met their specific needs.

Demand Rises for Financial Benefits and Equity Compensation

As financial stress rises, HR leaders are taking steps to help employees meet their personal financial goals. To move the needle for employees, 67% of HR leaders believe help with financial planning is essential and 69% say retirement planning assistance from financial professionals is a high priority.4 At the same time, the data suggest that in a complex economic environment, employees are turning toward equity compensation to help align their financial interests with those of their companies. In fact, 48% of employees completely or strongly agree that equity is the most effective way to keep them motivated and engaged in their roles.5

90% of employees believe workplace financial benefits are essential to reach their financial goals.

Gaps Exist in Retirement Guidance and Equity Education

While participation in company 401(k) plans held steady year-over-year at 86%,6 financial stress is affecting workers’ retirement savings behavior. This year, 39% of employees—and 48% of Gen Z workers—are reducing their retirement plan contributions due to economic concerns.7 To navigate this volatility, employees are looking for more comprehensive retirement guidance, including access to a Financial Advisor and goals-based retirement investment planning. Improvements in equity plan education are also needed, with only 34% of employees and 43% of HR leaders rating their company’s participant education program as very effective.8

84% of employees believe their employers should more actively assist them with their financial issues.

Up Next: Aligning Education Programs With Employee Needs

With workplace financial benefits being essential for meeting company and individual financial goals, 93% of HR executives and 85% of employees agree their companies still need to do a better job helping employees understand and maximize the financial benefits available to them.9 One way to tackle this challenge is by more carefully considering how company financial benefits and education programs align with key employee needs. With the research showing a direct tie between workplace financial benefits and employee retention, it is incumbent on employers to enhance the employee user experience and provide effective education and support.

80% of HR leaders received employee requests for specific financial benefits support their company does not currently offer.
Explore more insights in the State of the Workplace Financial Benefits Study
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Footnotes

1 The State of the Workplace 2025 Financial Benefits Study, Morgan Stanley at Work, 4.

2 The State of the Workplace 2025 Financial Benefits Study, Morgan Stanley at Work, 4.

3 The State of the Workplace 2025 Financial Benefits Study, Morgan Stanley at Work, 4.

4 The State of the Workplace 2025 Financial Benefits Study, Morgan Stanley at Work, 5.

5 The State of the Workplace 2025 Financial Benefits Study, Morgan Stanley at Work, 15.

6 The State of the Workplace 2025 Financial Benefits Study, Morgan Stanley at Work, 24.

7 The State of the Workplace 2025 Financial Benefits Study, Morgan Stanley at Work, 24.

8 The State of the Workplace 2025 Financial Benefits Study, Morgan Stanley at Work, 26.

9 The State of the Workplace 2025 Financial Benefits Study, Morgan Stanley at Work, 29.

 

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