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State of the Workplace 2024 Financial Benefits Study

Discover new ways to attract talent amid evolving workplace trends.

Our annual State of Workplace Financial Benefits Study explores the role and perception of workplace benefits, helping to uncover opportunities for employers to enhance employee engagement.

 

In this fourth iteration of our annual study, many of the core financial themes that have shaped the study since its inception remain at the forefront. Amid ongoing economic uncertainty, workers are still under financial stress and are looking to their employers for financial guidance. While HR leaders are responding, they are increasingly challenged to improve employee benefits programs, education and awareness in the face of tight business margins and unpredictable economic conditions.

Since we first fielded this study in 2021, a clear constant has been the theme that financial benefits are a strategic priority.
Scott Whatley
Head of Morgan Stanley at Work


Financial stress remains an important factor for employees, with 78% who say they still feel pressure to accelerate their financial planning to help make up for lost time.1 This underscores the importance employees continue to place on receiving broad-based and long-term workplace benefits support.

 

Once again, the most in-demand financial benefits include retirement planning support and financial advice. Additionally, desire for equity compensation continues to grow among both employees and employers. As companies come to recognize the critical role these solutions may play in helping employees meet their financial goals, they are seeking opportunities to differentiate themselves by offering comprehensive benefits, relevant education programs and intuitive user experiences.

 

The key now may be for companies to further embrace the potential power of workplace financial benefits to support employee loyalty and engagement, which in turn can foster a feeling of participation in their employer's ongoing success.

Financial Benefits Still in the Spotlight

With 91% of HR leaders reporting that they suspect employees are facing financial hardships—and 46% of employees in agreement—the demand for workplace financial support may be on the rise.2 Increasingly, workers are turning to their employers for help with their financial challenges, driving companies to seek to better support employees through a  balance of digital and in-person solutions.

 

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81% of employees want their employers to be more involved in helping them through financial challenges.

Financial Benefits and Equity Compensation: A Recipe for Retention

HR leaders and employees agree that workplace benefits are the key to company loyalty, with 91% of employees saying they would be interested in considering changing—or keeping (89%)—jobs to gain access to the financial benefits they need.3 In parallel, 63% of retirement plan participants say that access to assistance from professionals is a top or high priority when choosing where to work.4 According to 95% of HR leaders and 80% of workers, adding equity compensation to the mix is the most effective way to further drive employee motivation and engagement.5

87% of HR Leaders believe comprehensive financial benefits are a game changer for employees when deciding the stay or leave for another job – up 8% since 2021.

Gaps Remain: Retirement Guidance and Financial Advice

While 54% of HR leaders feel their company is making some progress in offering financial benefits to employees (up 10% from 2023), they also admit it’s not necessarily enough to meet demand.6 The top benefits employees are seeking, according to the survey, are assistance with retirement preparation, financial planning and goals-based retirement investment planning. For HR leaders, goals-based retirement investment planning comes first, followed by access to a financial planner and retirement planning tools and calculators. Either way, companies recognize that employees need additional retirement planning support, especially as employee contributions to workplace 401(k) plans are in decline.

82% of HR leaders say employees have asked for specific financial benefits their company does not offer.

Benefits Awareness and Education are the Next Frontier

Despite their desire for greater financial support at work, 32% of employees say they have never thought to reach out to their companies for help.7 Similarly, and despite the growing demand for equity compensation, only 38% of employees say they are aware that their company offers equity compensation benefits.8 The data suggest that more can be done to educate employees about their workplace benefits and help them understand the financial opportunities available to them through equity ownership. Closing these awareness and education gaps may help employers further address employee needs.

85% of employees believe their company needs to do a better job explaining how to maximize the financial benefits offered – and 96% of HR leaders agree.
Explore more insights in the State of the Workplace Financial Benefits Study
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1 The State of the Workplace 2024 Financial Benefits Study; Morgan Stanley at Work, 18. 

2 The State of the Workplace 2024 Financial Benefits Study; Morgan Stanley at Work, 4.

3 The State of the Workplace 2024 Financial Benefits Study, Morgan Stanley at Work, 4.

4 The State of the Workplace 2024 Financial Benefits Study, Morgan Stanley at Work, 26.

5 The State of the Workplace 2024 Financial Benefits Study, Morgan Stanley at Work, 15.

6 The State of the Workplace 2024 Financial Benefits Study, Morgan Stanley at Work, 4.

7 The State of the Workplace 2024 Financial Benefits Study, Morgan Stanley at Work, 4.

8 The State of the Workplace 2024 Financial Benefits Study, Morgan Stanley at Work, 4.

 

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