Why financial benefits are HR’s secret weapon in the ‘Great Detachment’ era: A conversation with Morgan Stanley at Work’s Rodney Bolden
At a time when research suggests only about one-third of employees feel engaged at work, HR leaders face a critical challenge: how to reconnect with increasingly detached workers amid economic uncertainty. The answer might lie in employers’ benefits packages, according to Morgan Stanley at Work’s 5th annual report “State of the Workplace Financial Benefits.”
“We’ve moved through several workforce phases since the pandemic,” Rodney Bolden, executive director, head of industry engagement at Morgan Stanley at Work, said during a conversation with WorkLife at the recent Workhuman Live HR conference in Denver. “From the ‘Great Resignation’ to the ‘Great Rehiring,’ the ‘Great Reshuffling’ and the ‘Great Betrayal.’ Now we’re experiencing the ‘Great Detachment.’”
This disconnection shows in the numbers. Fewer than 2 in 5 employees believe someone cares about them as a person at work or respects them, according to the report. Meanwhile, financial anxiety continues climbing, with 66% of employees reporting that financial stress negatively affects their work and personal life, up 4 percentage points since last year.
Why should people managers care? Because 3 in 5 HR leaders identify hiring and retention as their company’s top strategic financial priority for 2025, and the data reveals a clear connection: employees who feel financially supported stay longer. “If employers don’t show they care, why should employees make that commitment?” Bolden said. In fact, almost half of employees who left their jobs cited benefits as the top reason for their departure.
A stark reality
The study reveals a stark reality: 4 in 5 HR executives worry employees will seek other job opportunities if their company can’t offer benefits to help manage financial stress. And they’re right to worry, as 9 in 10 employees say they would feel more invested in staying if they were offered financial benefits that met their specific needs.
Today’s workforce is practically begging for help, and 84% believe employers should actively assist them with financial issues, with Gen Z (95%) leading the charge compared to boomers (66%).
“Work-life balance consistently ranks as what motivates employees to stay, but it’s increasingly about the ‘life’ part,” Bolden said. “Six out of 10 employees believe their employer should be more proactive in helping them navigate financial needs given the current economic instability.”
What resonates with workers most? According to Bolden, an overwhelming majority of workers say equity compensation is the most effective way to keep them engaged and motivated. “It creates an ownership culture — when your job is not only your job but also your wealth-building instrument, that changes your attitude about the company,” he said.
Despite employers’ best intentions, there’s a glaring disconnect between what companies offer and what employees need, as 4 in 5 HR executives received employee requests for specific financial benefits their company doesn’t currently provide, according to the study.
“Financial wellness has evolved dramatically,” Bolden said. “Twenty years ago, it was just four education modules — credit, debt management, budgeting and retirement. Now we have over 50,000 education modules because people have differentiated financial challenges.”
Taking action
There are several action steps for HR leaders, including:
Assessment. Conduct a financial wellness needs assessment, Bolden advised, noting that only about one-third of companies are doing it. “Just like a doctor wouldn’t prescribe medicine without an examination, employers need to assess before implementing solutions,” he said.
Data disaggregation. Understand how needs vary across demographics — geography, job title, gender and generation. For example, older workers focus on retirement while younger workers worry more about day-to-day expenses.
Education accessibility. In manufacturing settings where employees can’t leave the floor, digital solutions allow for access on their own time.
Benefit ambassadors. Appoint employees who share success stories with company benefits through testimonials or short videos.
“Since the workplace is often the first entry point for many employees to build financial security, nailing the workplace benefits user experience and providing effective education remains key — not just for the employee, but for the company,” said Kate Winget, chief revenue officer of Morgan Stanley at Work.
In a volatile economic landscape with detached employees, what is clear is that the financial outcomes of companies and their people are inextricably linked. Financial benefits aren’t just perks — they could be a company’s path to reconnection.