It has been a difficult few years for employees. There was the shock of COVID-19, which fundamentally reshaped how and where we work. Then employees were hit with surging inflation, which exacerbated the financial vulnerability they already felt in the waning years of the pandemic. More recently, employees had to quickly acclimate to the reversal of policies such as work-from-home and the pause on student loan payments.
Now employees face slowing job growth, rising healthcare costs, and the accelerating adoption of AI. HR teams always have their hands full, but 2026 is shaping up to be a year of transformation that will require them to think more creatively about how they support employees—from providing more flexible and personalized benefits to determining how they can stretch their budgets as far as possible. HR teams also have to address the culture of overwork that has become entrenched at far too many companies, which is leading to employee stress and disengagement.
The HR teams that focus on improving employees’ financial wellness and striking a healthier work-life balance will see higher levels of engagement, performance, and retention. Here are the top five trends HR teams should focus on to meet employees’ evolving needs in 2026.
Trend #1: Rising healthcare costs will be a major focus
A 2025 survey conducted by Mercer found that healthcare costs will see a larger single year spike in 2026 than any year since 2010. According to KFF, coverage on the Affordable Care Act marketplace will rise by an average of 26 percent —and increases could be much higher if ACA tax subsidies expire.
To offset these costs, many employees will shift from low-deductible and PPO plans to high-deductible plans. Although this will reduce premiums, it leaves employees at the mercy of chance—if they get ill or need medical care, they will suffer a much larger financial blow. To make matters worse, rising healthcare costs for employers will limit HR teams’ ability to provide new benefits. These obstacles will force HR teams to consider a wider range of options for slashing costs and supporting employees financially.
Trend #2: Employees’ financial anxiety is deepening
On top of rocketing healthcare costs, employees will face other significant financial headwinds in 2026—such as stubborn inflation and a weakening job market. A 2025 PNC Bank survey found that 86 percent of employees worry about their personal finances at work, while Morgan Stanely reports that two-thirds of employees say financial stress is negatively affecting their work. Over two-thirds of employees say they’re living paycheck to paycheck.
Total household debt is nearly $18.6 trillion, including $1.23 trillion in credit card balances. This is a particularly big issue for younger generations of workers, 88 percent of whom are in debt. With total student loan debt at over $1.6 trillion and many Gen Z and Millennial workers carrying substantial credit card balances, younger generations are struggling to make big purchases like their first homes. HR teams must help employees of all ages address these issues and work toward financial stability in 2026.
Trend #3: Holistic financial wellness will be vital
It’s no wonder that 90 percent of employees believe workplace financial benefits are essential to reach their personal financial goals. Far too many employees are staying afloat by stealing from their own futures—401(k) hardship withdrawals are rapidly increasing and millions of Americans take out payday loans with stratospheric interest rates each year. Meanwhile, the proportion of employees who say their companies are taking responsibility for their financial wellness fell from 2024 to 2025.
Eighty percent of HR executives say they have received a request for financial benefits that they don’t offer, while 81 percent worry that employees will seek other job opportunities if they don’t think the company is helping them manage financial stress. This concern is well-founded—81 percent of employees say they’re more likely to stay with employers that offer a wider range of financial benefits. The top benefits employees want include assistance with budgeting, debt reduction, emergency savings, and retirement planning. The HR teams that offer these benefits will likely see gains in employee morale and retention in 2026.
Trend #4: Work-life balance is under pressure
It’s no secret that many American workplaces have cultures that make it difficult for employees to find a healthy work-life balance. Just 22 percent of employees say they use all the paid leave available to them, while over three-quarters say they wish their companies placed greater emphasis on taking time off. HR teams should be especially concerned about this disconnect at a time when work-life balance is a top priority for employees—many of whom say it matters even more than pay.
Stress is a major cause of employee disengagement, and it can be caused by everything from financial anxiety to heavy workloads. With hiring on a downward slope, persistent concerns over inflation, and mass adoption of AI (which has employees worried about job displacement), employees will be even less inclined to take the time they need. HR teams need to move away from the culture of overwork by empowering employees to take time off when they need it and offering more flexible benefits.
Trend #5: The demand for flexible and personalized benefits will rise
Employees want to be treated like individuals with their own needs and goals. One-size-fits-all benefits like traditional PTO are failing to meet this demand, which is why they’re chronically underused. Over 90 percent of employees say they’re more likely to stay at companies that offer benefits tailored to their individual circumstances, which is why HR teams are increasingly focused on these benefits.
Employees want greater ownership of their benefits, which comprise a significant proportion of their overall compensation. Flexible benefits like convertible PTO would allow them to repurpose the value of unused time off for other priorities—from retirement contributions to health savings accounts. Earned wage access would enable employees to receive their pay on demand, helping them avoid risky and costly emergency measures like payday loans or 401(k) hardship withdrawals. HR teams can also investigate personalized mentoring, investment services, upskilling, and wellness reimbursements.
Although employees face significant financial challenges in 2026, HR teams have plenty of tools available to help their people navigate these challenges. When HR teams help employees get their financial house in order, their efforts will be rewarded with greater loyalty, increased engagement, and a stronger workforce.
Rob Whalen is cofounder and CEO of BNFT.