Employees need and want incentives beyond their bi-weekly paychecks. A new Morgan Stanley at Work Annual State of the Workplace III Study says that financial benefits drive retention and engagement. This is a result from things like market uncertainty and inflation. The added financial stress is driving employees to get more from workplace financial benefits, which include equity compensation, financial wellness and retirement preparation.

For example, the report shows that 89% of employees agree they would be more invested in staying at their company if it provided financial benefits that met their needs. And, most HR leaders (90%) are worried that their employees would leave if their company did not provide benefits that met employee needs.

"Economic instability has led both employers and employees to tighten their belts—and ask a lot of their workplace benefits in the process," said Brian McDonald, Head of Morgan Stanley at Work. "We're seeing momentum on both the employer and employee side to engage more intelligently with financial benefits as a ballast against uncertainty. To meet this moment, companies are going to have to get even more creative and efficient in leveraging holistic benefits offerings to attract, retain, and motivate their employees."