Employees are paying more attention to their financial benefits compared to a year ago and are looking to their employers for expanded resources and guidance.
That’s the key finding from Morgan Stanley at Work’s second annual State of the Workplace Financial Benefits Study, highlighting the economic challenges employees face amid rising inflation and evolving views on financial benefits.
The study released today found that employees across age groups are struggling with their personal finances due to inflation and concerns of a recession. The stakes have been raised for companies as employees focus on the role and value of financial workplace benefits, including equity compensation, financial wellness and retirement preparation.
Among employees, 60% say they are paying more attention to reviewing their financial benefits compared to a year ago, and an overwhelming 96% of employees agree that their company should ensure it offers the best benefits available in their industry, which aligns with HR leaders’ views (97%).
Despite more executives saying they are offering quality financial benefits, 84% of HR leaders (up from 78% in 2021) recall a recent time when an employee has requested a specific type of financial benefit that their current company does not offer.
With 93% of employees viewing retirement planning assistance as a priority when choosing where to work, closing this gap should be considered “low-hanging fruit” in terms of meaningful improvements.
But employers and employees alike agree there is more work to do. Almost all HR leaders (96%) say “their company needs to do a better job helping employees understand how to maximize the financial benefits offered to them,” an increase from the previous year (93%).
Employees largely agree, with 89% saying their company needs to do a better job helping employees understand how to maximize financial benefits, slightly up from 2021 (87%).
More than half (52%) of employees believe that working with a financial advisor would be the single most beneficial retirement planning tool for them. But access to an advisor only tied for third choice among HR leaders—demonstrating a disconnect. With 93% of employees viewing retirement planning assistance as a priority when choosing where to work, closing this gap should be considered “low-hanging fruit” in terms of meaningful improvements.
“For employees and employers alike, the stakes today are high when it comes to ensuring employee financial wellbeing,” said, Brian McDonald, Head of Morgan Stanley at Work. “In 2021 the effects of Covid were still being felt by many employees when it came to their finances, yet now in 2022, we face a new set of challenges and a very different economic environment. Amid persistently high inflation, many employees are seeking help managing their short and long-term financial needs, such as budgeting, reducing debt, building emergency savings, and planning for retirement. We have seen first-hand that many employers are stepping up to tackle these challenges, yet there remains more work to be done.”
Additional details are available in Morgan Stanley at Work’s State of the Workplace Study, available here. As part of a series of findings from Morgan Stanley at Work’s second annual study, the business will also publish its findings on financial wellness, retirement, and equity compensation.
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