Financial security, mental health, and work-life balance top concerns for American workers

Employers need to work with employees for retention: ©s_l - stock.adobe.com

American workers are grappling with financial uncertainty, mental health challenges, and evolving workplace expectations, according to the latest findings from Franklin Templeton’s Voice of the American Workplace Survey. Now in its fifth year, the survey highlights the growing need for employer-employee collaboration in addressing these concerns.

Nearly half of workers (49%) identified protecting their mental health as a top priority, while more than half (54%) expressed fear they will not be able to maintain their desired quality of life in retirement. Furthermore, 70% of respondents emphasized that financial security—having enough money to live comfortably for the rest of their lives—is critically important.

"The survey findings highlight the need for a balanced effort between employers and employees to foster financial security, mental health support, and workplace adaptability," said Jacque Reardon, head of US marketing for Franklin Templeton. "Employers who embrace these opportunities can build stronger relationships with their workforce, enhancing retention, loyalty, and long-term success."

A key takeaway from the survey is the shifting power dynamic in the workplace, as 88% of employers report that employees are willing to leave their jobs if dissatisfied, even without clear alternatives. At the same time, compensation remains a challenge, with 76% of employees stating their organizations are struggling to find adequate resources to meet demands for increased pay. Retirement planning is also evolving, with 90% of employers now viewing it as a shared responsibility with employees. However, a gap remains in benefits education, as 59% of workers admit they don’t fully understand or maximize their company benefits.

“Employers can seize the opportunity to educate employees on available benefits and prioritize clear communication and collaboration to ensure employees can leverage the most impactful benefits,” said Steve McKay, head of Retirement, Insurance, and College Savings for Franklin Templeton. “Retention strategies should focus on foundational benefits like pay, 401(k) matches, and health insurance, while actively seeking employee feedback to strengthen engagement and loyalty.”

Work-life balance is another major concern, particularly among younger employees who are navigating financial pressures such as student loans and rising housing costs. Fifty percent of workers cited work-life balance as their top priority, and 78% said they valued having a good work-life balance over salary increases. Additionally, 76% of workers indicated that mental health support has become increasingly important, with mental health benefits ranking as the most utilized employee benefit at 41%.

The survey results underscore the pivotal role employers play in fostering financial well-being and mental health support. The vast majority (92%) of employers believe investing in employees’ financial futures drives loyalty, while 87% say retirement plans are a key factor in attracting top talent.

The Voice of the American Workplace Survey was conducted by The Harris Poll on behalf of Franklin Templeton and the Retirement Innovation Initiative (RII). The worker survey included 2,018 employed U.S. adults with some form of retirement savings, while the employer survey gathered responses from 1,002 individuals involved in company benefits and hiring decisions at organizations with more than 100 employees.