What's Happening?
A recent study by MetLife highlights a significant decline in employee financial wellbeing compared to a decade ago, despite similar levels of job satisfaction and retention. The 2026 Employee Benefit Trends Study, which surveyed 2,500 HR leaders and 2,500 full-time U.S. employees, reveals that workers today are less financially secure than in 2016. The study found that employees are 12 percentage points less likely to feel in control of their finances and five percentage points less likely to have a three-month emergency savings cushion. Rising living expenses and medical bills are cited as top stressors, with 83% of employees expressing cost-related concerns. Additionally, half of the employees avoided medical care due to cost in the past
year. The study suggests that traditional engagement and retention metrics may not fully capture the financial strain employees are experiencing.
Why It's Important?
The findings underscore a growing expectation among employees for employers to support their financial wellbeing, a shift from a decade ago. This change presents both a challenge and an opportunity for HR leaders. Employers are under pressure to manage costs while investing in employee wellbeing, as controlling health costs has become a top benefits objective. Despite increased investment in benefits, only 44% of employees report feeling holistically healthy, indicating a disconnect between benefits strategies and employee needs. Employers recognize the potential value of investing in employee health, expecting a return of $2.30 for every dollar spent through gains in productivity, retention, and reduced medical costs. The study highlights the importance of non-medical benefits, which are seen as cost-effective for boosting employee health and reducing medical costs.
What's Next?
HR leaders may need to reevaluate their benefits strategies to better align with employee expectations and address financial wellbeing. The study suggests that non-medical benefits, such as financial wellness tools, mental health resources, and caregiving support, offer strong returns on investment. Employers might consider prioritizing these benefits to improve employee health and satisfaction. As economic conditions continue to evolve, HR leaders will need to balance cost management with the need to support employee wellbeing, potentially leading to innovative benefits solutions that address the root causes of employee stress.
