A new report from Bank of America highlights changing employee expectations around workplace benefits, as businesses continue to face difficulties in attracting and keeping talent. The 2025 Workplace Benefits Report, now in its fifteenth year, points out that the right mix of benefits can increase employee satisfaction and productivity, while a lack of adequate options may lead workers to seek other opportunities. In Austin, the rising cost of living is making these challenges more pronounced for employees, especially when it comes to affordability and flexible work arrangements.
The study found that personal debt is a significant issue for many workers. According to the survey, 85% of employees have some form of personal debt. Credit card balances now surpass mortgage debt among this group. One in four respondents reported having student loans, and nearly one in five said they carry medical debt.
Caregiving responsibilities are also common among employees. Nearly 60% said they are caregivers and expressed a desire for more flexible schedules, expanded leave policies, and support for financial wellness.
Employers see value in offering financial wellness programs; eight out of ten believe such resources improve satisfaction and productivity. However, less than half currently provide these types of programs.
The report also notes generational differences in attitudes toward finances and well-being. Nearly 90% of Gen Z and Millennial workers have debt. Gen X respondents reported experiencing the highest levels of burnout, while Baby Boomers were identified as the most optimistic about their financial futures.
Retirement planning remains uneven across the workforce. Seven out of ten employees said saving for retirement is a priority but almost half wish they had started earlier. More than one-third regret not fully utilizing employer matching contributions to their 401(k) plans.
Interest in new types of benefits has increased sharply. The number of employees seeking help with student loan repayment has almost tripled over two years. Workers are also asking employers for wellness reimbursements, access to small emergency loans, pet insurance coverage, and grandparent leave options.
Bank of America stated: “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.” The bank offers an integrated platform designed to help employees manage their financial goals while supporting benefit managers with administration tools.
