Employee retention strategies are evolving. Salary alone is no longer enough. Today’s workforce expects employers to support their long-term financial well-being, and the data proves it.
According to the fifth annual Morgan Stanley at Work “State of the Workplace Financial Benefits Study,” 91% of employees say they feel more invested in their company when financial benefits are offered. That’s a powerful signal for employers competing to attract and retain top talent.
At the same time, 81% of HR leaders admit they are concerned about retention. They understand that if their benefits package falls short, employees may choose not to join or may leave for an organization that better supports their financial goals.
And the pressure is increasing. Three-quarters of HR leaders report receiving requests for financial benefits they currently do not offer. If those gaps remain, future hiring and retention efforts could suffer.
Employees Want More Financial Support
Financial wellness programs are no longer “nice to have.” They are becoming a core component of competitive employee benefits packages.
More than 84% of employees say they want their employer to play a more active role in helping them navigate specific financial challenges. Yet 34% admit they have never considered asking their employer for help suggesting an opportunity for employers to lead proactively.
In fact, 90% believe workplace financial benefits are essential to reaching their long-term goals, especially:
- Retirement preparation
- Financial planning
- Long-term investing strategies
When asked about their top financial priorities, employees identified:
- Building savings (50%)
- Investing for the long term (47%)
- Paying down debt (43%)
These priorities directly align with financial wellness benefits such as retirement plans, employer contributions, education resources, and debt support programs.
Generation Z Has the Highest Expectations
Younger employees are raising the bar. Generation Z — individuals born between 1997 and 2012 — have the greatest expectations when it comes to employer-supported financial wellness. For employers looking to build a sustainable workforce, especially in a competitive market, offering financial benefits that address savings, investing, and debt management can be a meaningful differentiator.
Review Your Financial Benefits Strategy
If you are unsure whether your current employee benefits package fully supports hiring and retention goals, now is the time to evaluate your options. Talk with your employee benefits broker about:
- Comparing financial wellness benefit options
- Evaluating cost-effective enhancements
- Aligning your benefits strategy with workforce expectations
- Strengthening employee retention without losing cost control
A thoughtful financial benefits strategy doesn’t just support employees, it supports long-term business stability and growth.