Sponsored by Morgan Stanley at Work
For chief human resources officers, the 2026 retention conversation is no longer just about compensation, culture, flexibility or career progression. Employees are asking a more personal question: Is my employer helping me make financial progress?
That question now sits at the center of attrition risk. Morgan Stanley at Work’s State of the Workplace 2026 Financial Benefits Study data shows that 91 percent of employees would consider a new job if it offered financial benefits that helped them reach their goals, while 85 percent would feel more invested in staying if their company offered financial benefits tailored to their specific needs.1
For CHROs, the message is clear: Financial benefits are no longer a supporting element of the employee value proposition; they are becoming a retention lever.
What Is Driving Attrition Risk?
Financial Stress Is Affecting Work
The first driver is financial stress. 56 percent of employees say financial stress is negatively affecting their work and personal life, while 80 percent of HR executives worry that employees’ personal financial issues are negatively affecting productivity.2
This is a wellness issue with direct implications for workforce performance.
The risk is especially pronounced among younger employees. Financial stress negatively affects 73 percent of Gen Z employees, compared with 58 percent of Millennials, 49 percent of Gen Xers and 41 percent of Baby Boomers.3 For CHROs focused on retaining early-career talent and future leaders, that gap matters. Younger employees may be more likely to judge an employer by whether it helps them build financial stability, not just whether it offers advancement.
Employees Do Not Always Know How to Use What They Have
The second driver is a benefits understanding gap. Many employees have access to financial benefits, but do not feel equipped to use them. Seventy-nine percent of employees say their company needs to do a better job helping them understand how to maximize available financial benefits. Ninety-one percent of HR executives agree.4
A benefit employees do not understand has limited retention value. A benefit they can confidently use can strengthen loyalty.
Economic Pressure Is Changing Savings Behavior
The third driver is pressure on long-term savings. Employees’ top 2026 financial priorities are building savings at 56 percent, investing for the long term at 51 percent and saving enough to get the employer 401(k) match at 45 percent.5 Yet 61 percent of employees say they are reducing contributions to workplace benefits because of inflation or recession concerns, including 35 percent reducing 401(k) contributions, 27 percent reducing long-term savings, 26 percent reducing emergency savings and 24 percent reducing health savings account contributions.6
This creates a quiet retention risk. Employees want to make progress, but uncertainty is forcing tradeoffs. If another employer appears better equipped to help them navigate those tradeoffs, the case for leaving can become stronger.
Four Levers You Can Pull This Year
1. Make Financial Benefits Feel Personal
Personalization is central to retention. If 85 percent of employees say tailored financial benefits would make them feel more invested in staying, CHROs should treat personalization as a strategic priority.7
That means moving beyond one-size-fits-all communications. A new hire focused on emergency savings needs a different experience than a mid-career employee balancing retirement, college savings and debt repayment. An executive with equity compensation needs different planning support than an employee just beginning to invest.
The goal is not simply to offer more benefits. It is to help employees see which benefits matter to them, what action to take and how those actions connect to their financial goals.
2. Turn Education Into Action
Education should not stop at open enrollment. Seventy-five percent of employees say financial benefits focused on financial and investment planning are essential to meeting their goals, and 90 percent of HR executives agree.8 Yet the understanding gap shows that access alone is not enough.
CHROs can build year-round education around key moments: onboarding, promotion, equity grants, vesting events, market volatility, family changes, relocation and retirement milestones.
Every communication should answer one question for the employee: What should I do next? If benefits education only explains what is available, it may create awareness. If it helps employees take the next best action, it can build confidence and improve retention.
3. Position Equity as Ownership
The opportunity for CHROs is to frame equity in two ways: as a personal wealth-building tool that can support long-term goals and as a way for employees to participate in company success.
There is also a clear education opportunity. Among employees at companies that offer equity compensation, 48 percent want help maximizing their equity or employee stock purchase plans.10 Better support around grants, vesting, taxes, diversification and planning can make equity feel less complex and more valuable.
4. Treat Retirement Guidance as a Retention Strategy
Retirement support remains a major factor in how employees evaluate employers. Ninety-five percent of employees say retirement planning assistance from financial professionals is important when choosing where to work, and 51 percent cite it as a top or high priority.11
Employees are not only looking for plan access. They want guidance. Their top retirement planning priorities include goals-based investing, retirement income solutions and access to a Financial Advisor. 12 For CHROs, retirement support should be treated as more than a future benefit. It is a present-day signal that the employer is invested in employees’ long-term security.
The Takeaway
Retention in 2026 will be shaped by whether employees believe their employer is helping them make financial progress. The data shows that financial stress affects performance, employees are cutting back on savings and many would consider changing jobs for benefits that better support their goals.
The answer is not simply to add more programs. CHROs can create greater retention impact by making benefits personal, turning education into action, positioning equity as ownership and long-term value and elevating retirement guidance as a core talent strategy.
Companies that do this well will offer more than competitive benefits. They will give employees a clearer reason to stay.
Source
1-12 State of the Workplace 2026 Financial Benefits Study data
Disclosures
Employee stock plan solutions are offered by E*TRADE Financial Corporate Services, Inc., Solium Capital LLC, Solium Plan Managers LLC and Morgan Stanley Smith Barney LLC (“MSSB”), which are part of Morgan Stanley at Work.
Morgan Stanley at Work services and stock plan accounts are provided by wholly owned subsidiaries of Morgan Stanley.
Morgan Stanley at Work stock plan accounts were previously referred to as Shareworks, Stock Plan Connect or E*TRADE stock plan accounts, as applicable.
In connection with stock plan solutions offered by Morgan Stanley at Work, securities products and services are offered by MSSB, Member SIPC.
E*TRADE from Morgan Stanley is a registered trademark of MSSB.
All entities are separate but affiliated subsidiaries of Morgan Stanley.
Content and services available to non-US participants may be different than those available to US participants.
The laws, regulations, and rulings addressed by the products, services, and publications offered by Morgan Stanley and its affiliates are subject to various interpretations and frequent change. Morgan Stanley and its affiliates do not warrant these products, services, and publications against different interpretations or subsequent changes of laws, regulations, and rulings. Morgan Stanley and its affiliates do not provide legal, accounting, or tax advice. Always consult your own legal, accounting, and tax
Morgan Stanley at Work, Shareworks, Morgan Stanley Smith Barney LLC, and its affiliates, employees and Financial Advisors do not provide legal or tax advice. Individuals should consult with their tax/legal advisors before making any tax/legal-related investment decisions. Stocks/equities fluctuate in value and may be worth more or less than their original cost. Past performance is no guarantee of future results.
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.
CRC#5840418 (08/2026)
