Financial stress is quietly eating away at workforce productivity, and employees are increasingly looking to their employers to do something about it, with many prepared to find a new job if they don't.
That's the central message from Morgan Stanley at Work's sixth annual State of the Workplace Financial Benefits Study, which surveyed 1,000 employed US adults and 600 HR leaders and found widespread anxiety about personal finances bleeding directly into the workplace.
More than half of employees say financial stress is negatively affecting their job performance, while 61% are pulling back on contributions to workplace benefits as inflation and recession fears take hold. Meanwhile, 80% of HR managers expressed concern that their workers' money troubles are hitting productivity.
Nine in ten employees said they would consider leaving their current employer for one that offered benefits better aligned with their financial goals, while 85% said they would feel more committed to their company if it provided benefits tailored to their specific needs.
"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."
HR leaders appear to be getting the message with 65% identifying hiring and retention as their firm's top strategic financial priority for 2026, a six-percentage-point jump from the prior year, ahead of technology investment at 43%.
Nearly three quarters of workers said they feel pressure to accelerate their financial planning, and 84% reported running into at least one financial hurdle over the past year. Budgeting topped the list of pain points at 39%, followed by financial goal setting at 35% and retirement planning at 34%.
However, there remains a significant gap between what employees need and what they feel they're getting. Close to four in five workers said their employers could do a better job helping them make the most of the benefits already on offer.
Equity compensation emerged as a particularly powerful engagement tool, with 75% of employees and 85% of HR leaders agreeing it is the most effective way to motivate staff.
Workers ranked helping them reach long-term investing goals including retirement as its most valuable feature, while HR leaders pointed to giving employees a personal stake in company performance.
"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."
Even among workers at companies that already offer equity compensation, nearly half said they want more guidance on how to get the most out of those benefits.
Retirement planning carries particular weight in how workers evaluate prospective employers, with 95% saying professional retirement planning assistance is an important factor when considering where to work, and 51% ranking it as a top or high priority.
"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."
When it comes to what employees actually want from retirement planning support, goals-based investing led the way at 46%, followed by retirement income solutions at 45% and direct access to a financial advisor at 43%.
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