Amid AI Disruption and Retention Risk Concerns, Financial Benefits Drive Employee Engagement, Morgan Stanley Survey Finds

Morgan Stanley at Work issued new data from its sixth annual State of the Workplace Financial Benefits Study.

The research reveals workplace financial benefits are a powerful driver of employee satisfaction, engagement and retention, especially as a tighter job market, AI disruption and rising costs influence expectations for employer support. Financial stress remains a persistent challenge, fueling demand for practical planning guidance and help in maximizing existing benefits.

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Findings point to a focus on more comprehensive, integrated benefits strategies, where long-term planning, equity compensation and retirement savings support are central to both employee financial confidence and organizational performance.

Key findings include:

• Employers see a link between employee financial health and productivity. 80% of HR managers worry employees’ financial issues negatively affect productivity, and more than half (53%) believe financial stress-reducing benefits matter most to job satisfaction— above mental or emotional support (26%) and physical wellness benefits (19%).
• Employees agree financial stress continues to affect work. Over half (56%) say financial stress negatively affects their work, and concerns over the effects of inflation and recession are causing 61% to reduce contributions to workplace benefits.
• Employees want practical help with financial planning. Nearly three out of four (73%) feel they need to accelerate their financial planning efforts and 84% encountered financial issues in the past year—most often with budgeting (39%), financial goal setting (35%), and retirement planning (34%).
• Financial benefits are talent and retention levers. Over four out of five (85%) employees say they would feel more invested in their company if it offered financial benefits tailored to their needs, and 91% would consider switching jobs for benefits that help them reach their goals.
• And companies are prioritizing retention and hiring. 65% of HR executives say hiring and retention is their company’s top strategic financial priority for 2026 (up six percentage points year-over-year), followed by investment in technology (43%).
• Benefits education and guidance matters, and there’s room for improvement. Nearly four out of five (79%) employees believe their company needs to do a better job helping them understand how to maximize the financial benefits offered.

“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,” said Scott Whatley, Head of Morgan Stanley at Work. “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.”

Additionally, the study highlights how equity compensation and retirement benefits can play a powerful role in the benefits suite:

• Equity compensation drives employee motivation and engagement. 75% of employees and 85% of HR leaders agree that equity compensation is the best tool to effectively motivate employees.
• Employees & employers alike see long-term value in equity compensation. Employees believe the most important advantage of equity compensation lies in helping them meet long-term investing goals such as retirement (28%), while HR leaders cite giving employees a stake in company success (33%).
• When it comes to long-term investments, employees prioritize guidance. Nearly half of employees (48%) that work at companies that offer equity compensation want more help maximizing these benefits. And employees also want comprehensive retirement planning assistance, placing the greatest value on goals-based investing (46%), retirement income solutions (45%), and access to a financial advisor (43%).
• Retirement planning benefits are a deciding employment factor. 95% of employees say retirement planning assistance from financial professionals is important when choosing where to work, and more than half (51%) cite it as a top or high priority.

“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,” said Kate Winget, Chief Revenue Officer of Morgan Stanley at Work. “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 planning has an outsized influence on how employees evaluate their workplace benefits,” said Jeremy France, Head of Institutional Consulting Solutions at Morgan Stanley. “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.”

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