Amid AI Disruption and Retention Risk Concerns, Financial Benefits Drive Employee Engagement, Morgan Stanley Survey Finds
- With retention rising as a top strategic priority for employers, employees seek more financial guidance amid ongoing economic pressures.
- Equity compensation remains a key driver of employee motivation and satisfaction.
Morgan Stanley at Work today 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.
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."
Additional details are available in Morgan Stanley at Work's Sixth Annual State of the Workplace Study here.
Methodology: The data from the Morgan Stanley at Work Employees Survey and HR Leaders Survey comes from a survey of 1,000 U.S.-employed adults and 600 HR leaders for companies by Wakefield Research (www.wakefieldresearch.com).
About Morgan Stanley at Work
Morgan Stanley at Work provides workplace financial benefits that build financial confidence and foster loyalty—helping companies attract and retain top talent. Our end-to-end solutions support your organization at any stage of growth through a powerful combination of modern technology, insightful guidance, and dedicated service; they include Equity, Retirement, Deferred Compensation, Executive Services, and Saving and Giving solutions. And while we're fulfilling your company's benefits needs, we're also enhancing your employees' financial well-being. Each benefit solution also includes our engaging Financial Wellness program, which provides employees with knowledge, tools, and support to help them make the most of their benefits and achieve their life goals.
About Morgan Stanley Wealth Management
Morgan Stanley Wealth Management is a leading financial services firm that provides access to a wide range of products and services to individuals, businesses, and institutions, including brokerage and investment advisory services, financial and wealth planning, cash management and lending products and services, annuities and insurance, retirement, and trust services.
About Morgan Stanley
Morgan Stanley (NYSE:MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in 42 countries, the Firm's employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit https://www.morganstanley.com/.
This communication is not an offer to buy or sell or a solicitation of any offer to buy or sell any security or other financial instrument or to participate in any trading strategy. This material does not provide individually tailored investment advice and has been prepared without regard to the individual financial circumstances and objectives of persons who receive it.
When Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Financial Advisors and Private Wealth Advisors (collectively, "Morgan Stanley") provide "investment advice" regarding a retirement or welfare benefit plan account, an individual retirement account or a Coverdell education savings account ("Retirement Account"), Morgan Stanley is a "fiduciary" as those terms are defined under the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and/or the Internal Revenue Code of 1986 (the "Code"), as applicable. When Morgan Stanley provides investment education, takes orders on an unsolicited basis or otherwise does not provide "investment advice", Morgan Stanley will not be considered a "fiduciary" under ERISA and/or the Code. For more information regarding Morgan Stanley's role with respect to a Retirement Account, please visit www.morganstanley.com/disclosures/dol. Tax laws are complex and subject to change. Morgan Stanley does not provide tax or legal advice. Individuals are encouraged to consult their tax and legal advisors (a) before establishing a Retirement Account, and (b) regarding any potential tax, ERISA and related consequences of any investments or other transactions made with respect to a Retirement Account.
Morgan Stanley offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please consult with your Financial Advisor to understand these differences, or review our "Understanding Your Brokerage and Investment Advisory Relationships" brochure available at https://www.morganstanley.com/wealth-relationshipwithms/pdfs/understandingyourrelationship.pdf.
This communication contains links to third party websites. These links are provided only as a convenience. The inclusion of any link is not and does not imply an affiliation, sponsorship, endorsement, approval, investigation, verification or monitoring by Morgan Stanley of any information contained in any third party website. In no event shall Morgan Stanley be responsible for the information contained on that site or your use of or inability to use such site. You should also be aware that the terms and conditions of such site and the site's privacy policy may be different from those applicable to your use of any Morgan Stanley website.
Morgan Stanley Wealth Management is the trade name of Morgan Stanley Smith Barney LLC, a registered broker-dealer in the United States.
© 2026 Morgan Stanley at Work and Shareworks services are provided by Morgan Stanley Smith Barney LLC, member SIPC, and its affiliates, all wholly owned subsidiaries of Morgan Stanley.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260514191860/en/
Media Relations:
Alexa Mazzei alexa.mazzei@morganstanley.com