Between the rise of quiet quitting, the evolution of hybrid work, and concerns about artificial intelligence, we live in tumultuous times. In order to retain talent, it’s important for leaders to adapt to the changing needs of their employee population.
This is a particularly large challenge at the moment since it requires understanding and supporting very different groups. There are currently five different generations from all walks of life in the workplace. They have a wide range of preferences when it comes to money management, lifestyle, and retirement goals.
Finding ways to better understand and engage with the needs of unique employee segments can enhance recruitment and retainment efforts. In fact, our research shows that 91% of employees would be interested in changing jobs and 89% interested in keeping their jobs to gain access to the financial benefits they need.
Below are three ways to increase engagement through workplace benefits while fostering a workplace culture that addresses various employee financial goals and needs.
1. Make sure your benefits meet your employees’ specific needs
Fair pay, retirement income, and financial guidance may seem like universal demands, but employees come to the table with varying exposure to workplace benefits or financial planning, not to mention different goals—and thus may require different support.
For example, Generation Z officially outnumbered the baby boomer generation in 2024. Many Gen Z’ers are likely experiencing benefits for the very first time. Meanwhile, the sandwich generation—employees caring for both aging parents and growing children—is the fastest growing employee segment and likely needs additional support. Additionally, women with children (35%) are about twice as likely as men with children (18%) to say they declined or delayed a promotion due to family obligations.
Look for opportunities to provide support for their range of financial needs. For example, student loan repayment programs can help finance an education, emergency savings accounts can prepare your employees for an unexpected expense, and retirement savings vehicles like 401(k) can help your employees reach long-term financial goals.
For complex issues, consider connecting your employees with a financial coach or advisor. Our research at Morgan Stanley shows that only about four in 10 diverse high earners use a financial advisor or wealth manager, yet those who do feel more positive about their finances. At the end of the day, keeping pace with the needs and experiences of all employee segments can support a more financially healthy and engaged workforce.
2. Use equity compensation as a retention tool
According to our research, equity compensation is growing in popularity: three in four HR leaders (76%) reported that their companies are offering some form of equity compensation, up four percentage points year-over-year, and 12% since 2021.
Offering equity compensation can help strengthen teams, attract talent, and keep companies competitive in today’s dynamic environment. It gives employees the opportunity to benefit from the company’s success and potentially increase their net worth. Additionally, it motivates employees to adopt a collective mindset and invest in the success of the company—emphasizing the shared purpose of your organization and uniting all employers behind a common goal and culture.
The benefits of equity compensation reach beyond the employee: Equity can help you better reach business goals like recruiting top executives to hit a specific target or promoting company values. Our research shows that most HR leaders (95%) and employees (80%) agree that equity compensation is the most effective way to keep employees engaged.
3. Ensure your benefits education program meets different groups where they are
Benefits are no use to employees if they don’t know about them. Consider diversifying your communication strategy by using multiple channels to meet participants where they are: Data shows that baby boomers tend to prefer to learn about benefits through in-person conversations, Gen X employees through online resources, millennial employees through video and podcast content, and Gen Z employees through social media.
Our research shows that most employees (80%) believe their company needs to do a better job helping them understand how to maximize the financial benefits offered. Maintain a thoughtful cadence of communication throughout the year. Use various channels such as SMS text, chats, webinars, conference calls, and virtual meetings. Create a library of educational content such as articles, on-demand videos, and virtual classes on your employee intranet, so that employees can easily locate what’s relevant to them. Financial education can help employees connect the dots between their workplace benefits and their individual financial needs.
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