A recent study from Bank of America highlights changing employee expectations for workplace benefits as companies face ongoing challenges in hiring and keeping talent. The 2025 Workplace Benefits Report, which marks its 15th year, finds that certain benefits can boost job satisfaction and productivity, while inadequate offerings may lead workers to seek new opportunities. In cities like Austin, the high cost of living adds pressure on employees, especially regarding affordability and flexible work arrangements.
The report reveals that 85% of employees have personal debt, with credit card balances now surpassing mortgages. About a quarter of workers carry student loans, and nearly one in five has medical debt. Caregiving is also common: almost six out of ten employees are caregivers who express a need for flexible schedules, leave options, and support for financial wellness.
Financial wellness programs appear to make a difference. According to the survey, “Eight in ten employers say financial wellness boosts satisfaction and productivity — yet fewer than half offer these programs.” Generational differences are evident as well: nearly nine out of ten Gen Z and Millennial employees carry debt; Gen X reports the highest levels of burnout; Boomers remain the most optimistic about their finances.
Retirement planning remains uneven among workers. While seven out of ten prioritize saving for retirement, almost half wish they had started earlier. More than a third regret not fully utilizing employer 401(k) matches.
There is also growing demand for new types of benefits. Interest in student loan repayment assistance has almost tripled over two years. Employees increasingly request wellness reimbursements, small emergency loans, pet insurance, and even grandparent leave.
“For employers, the takeaway is clear: investing in the right mix of benefits isn’t just about perks. It’s about strengthening retention, improving productivity, and positioning your company as an employer of choice,” according to Bank of America. The company offers an integrated platform designed to help employees manage their financial goals while supporting benefits managers.
