With inflation concerns and fears of a potential recession mounting, financial stress is taking a visible toll on American workers and workplaces, according to new data from Morgan Stanley at Work’s fifth annual State of the Workplace Financial Benefits Study.
 

As detailed in a press release shared by Morgan Stanley at Work, the study highlights the growing link between financial stress and workplace outcomes.

The report reveals that two-thirds (66%) of employees say financial stress is negatively impacting their work and personal life—an increase of four percentage points from 2024. HR leaders are also taking note, with 83% expressing concern about how employees’ personal financial challenges are affecting productivity.

More than eight in ten employees (84%) believe employers should play a more active role in addressing financial issues, with the sentiment strongest among Gen Z (95%). The study also found that 81% of employees feel the need to accelerate financial planning to make up for lost time, and 90% view workplace financial benefits as essential to achieving personal financial goals.

“We stand at a unique inflection point,” said Scott Whatley, Head of Morgan Stanley at Work. “Our latest study underscores the power of financial benefits packages to align business goals with employee needs—ultimately enhancing overall workplace satisfaction, productivity and stability.”

The findings also link financial benefits to strategic business priorities. Nearly six in ten HR executives (59%) identified hiring and retention as their company’s top financial goal for 2025, closely followed by investment in technology and AI integration. Notably, 91% of employees say they would feel more committed to their employer if the company offered benefits that support their financial well-being.

“This research shows a direct tie between workplace financial benefits and employee retention,” said Kate Winget, Chief Revenue Officer at Morgan Stanley at Work. “Financial benefits are a pathway forward.”

The study, conducted by Wakefield Research, surveyed 1,000 U.S. employees and 600 HR leaders. Further insights on equity and retirement benefits will be released in the coming weeks.


 
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