Employees are increasingly concerned about financial benefits: Morgan Stanley

The workplace is entering a strange transition period. COVID is abating, many people are back to work and in offices again, but new issues have arisen. The cost of goods and inflation is taking center stage and things like anxiety from climate change, to war overseas, is creeping into the collective consciousness.

What does this mean for employers and employees?

The Great Resignation and trepidation of workers that has manifested in the worker mindset is making employers consider their benefit plans and hear what their workers need. For example, a new Morgan Stanley at Work survey, State of the Workplace II, Financial Benefits Study, shows 84% of employees agree employers should be more involved with helping them through financial challenges. Unfortunately, nearly the same amount (4 out of 5) HR leaders say employees have requested support that the company does not offer.

“For employees and employers alike, the stakes today are high when it comes to ensuring employee financial wellbeing. Amid new challenges like persistently high inflation, many employees are seeking help managing their short- and long-term financial needs. We have seen firsthand that many employers are stepping up to tackle these challenges, yet there remains more work to be done,” notes Brian McDonald, Head of Morgan Stanley at Work.

The survey also shows that 90% of employees and 96% of HR leaders place moderate to high priority on their company re-evaluating benefits. In fact, it’s so important that 87% of HR leaders say employees will leave for another job if their company does not offer financial benefits that meet their needs.

Both HR and employees believe there is much more to do from a corporate standpoint. Sixty-seven percent of HR leaders say their company is not up to standards and only roughly a third believe their company is on the right path.

Financial benefits are also becoming more important to employees. Eighty-five percent of HR leaders say their employees give more attention to reviewing their financial benefits now versus the same time last year.

Employers know that attraction and retention is very important in today’s job market. Both employees (80%) and employers (95%) agree that equity compensation is an effective motivational strategy, engagement tool, and helps to meet long-term investment goals.

Read more: 6 reasons employers need a financial wellness program

Overall, HR leaders are taking note of employee financial challenges. More than half (63%) say employees regularly mentioned experiences that indicate financial challenges. This is occurring as 62% of employees have reduced contributions to their short-term and long-term savings.

The report concludes by saying amid uncertain times, employees are demanding industry-best benefits, such as access to a financial advisor. While HR leaders are moving to meet those demands, there is still more work to do.

Also, HR leaders and employees alike agree that when financial needs are met, employees are empowered to be more productive and happier in the workplace.