Why Workplace Benefits Are Critical in Today’s Economic Situation
Workplace benefits are more influential today in alleviating employees’ financial concerns and retaining talent.
- Morgan Stanley at Work’s annual conference, Thrive 2023, wrapped up recently.
- Among several takeaways from the conference, one key takeaway was the key role workplace benefits play in today’s challenging economic and market climate.
Morgan Stanely at Work recently concluded its annual conference Thrive 2023, in Aventura, Florida. The event, which took place for three days, featured several Client Advisory Board meetings, educational sessions, platform demos, one-on-one consultations, and hands-on labs.
Among several takeaways from the conference, one key takeaway was the key role of workplace benefits in today’s macroeconomic shifts and market uncertainty.
Workplace Benefits Play an Influential Role as Companies Continue Tightening Their Belts
With continued economic uncertainty and inflation, Morgan Stanley at Work used the insights and trends collected from its corporate customers and workplace participants to confirm the growing strategic importance of workplace benefits. In fact, workplace benefits, such as financial wellness, equity compensation, and retirement planning, are playing an influential role more than ever as both organizations and employees continue to see belt-tightening.
For instance, according to the company’s recent State of the Workplace 2023 report, the economic climate and increasing financial stress has significantly impacted the workplace, as 69% of employees said they are more careful in reviewing their financial benefits (9% more than last year).
There is also a clear correlation between employee retention and financial benefits. When employees feel that the company doesn’t care about their well-being, including financial ones, they will likely feel less engaged and more inclined to leave. In fact, 89% of the study’s respondents said they would be more invested in staying if their company provided financial benefits that met their needs. Yet, many organizations are reducing their offerings to prepare for a possible recession.
All these make workplace benefits more important in today’s situation.
Brian McDonald, head of Morgan Stanley at Work, said, “Today’s environment is underscoring the power of a holistic approach to benefits, especially as many companies and their employees turn to their workplace as a ballast against economic challenges.”
See more: Level up Your Employee Benefits With Financial Education
Better Education and Support Are Key
One common element across sectors and businesses is Generation Z employees who haven’t faced this kind of situation before. These employees seek employers’ guidance, education, and support regarding their benefits. Hence, providing them with better education and support around workplace compensation is crucial for organizations.
Providing better education is also crucial, as many employees believe they lack the knowledge to maximize their benefits. According to the company’s earlier study, 89% of employees said their companies should do more to help them understand how to maximize their financial benefits. Further, the conference witnessed more participants showing interest in asking a financial advisor for assistance with their financial goals.
Fortunately, organizations are increasing their efforts to improve their educational and communication strategies amid worries that workplace benefits aren’t properly reaching those facing financial problems. Yet, much remains to be done.
While robotics and automation tools may help create faster and more streamlined processes at the workplace, human support and solutions in complex situations are still required. Tailored benefits and education are becoming increasingly crucial as more employees turn to their workplace benefits in today’s economic situation.
How have you alleviated your employees’ concerns about financial benefits? Let us know on LinkedIn, Twitter, or Facebook. We’d love to hear from you!
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