NEW YORK–(BUSINESS WIRE)–Mercer, a business of Marsh (NYSE: MRSH) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, today released the full findings from its 2026 Inside Employees’ Minds report.
The research highlights that US employees are facing mounting pressures as they navigate economic uncertainty and rapid AI-driven changes. Many employees are feeling unsettled about job security and the future, which is leading them to renew their commitment to their current employers. In this volatile environment, employees are opting for the status quo while calling on employers to provide more transparency on pay and AI’s impact on roles, and to prioritize skill development and flexible work arrangements.
“Today’s workforce is offering employers a window of opportunity to transform short-term commitment into lasting loyalty,” said Stephanie Penner, Mercer’s US & Canada Career Practice Leader. “That commitment deepens when clarity, fairness, and follow-through are embedded into how the organization operates.”
Economic uncertainty is high, but confidence in employers holds
Economic volatility continues to weigh heavily on employees. Covering monthly expenses is the leading unmet need, followed by job security, retirement readiness, and work-life balance. Seventy percent of US employees report increased financial stress due to inflation and market volatility, while 76% worry about the broader economic impact of tariffs and 56% fear job-related consequences.
Some short-term financial pressures have eased. Fewer employees report reducing discretionary spending (38%, down from 51% in 2023) or tapping into savings (32%, down from 37% in 2023) to manage financial challenges. However, episodic and unexpected costs—particularly healthcare costs, which are expected to rise 6.7% this year, the highest increase in 15 years—continue to affect lower-wage workers disproportionately.
Pay remains the strongest driver of both attraction (37%) and retention (32%), with healthcare benefits ranking as the second most important factor influencing employees’ decision to stay. Beyond compensation, pay transparency and perceived fairness have become baseline expectations among employees. In fact, more than four in ten candidates would not apply to a job if pay ranges are not disclosed, reflecting how informal pay benchmarking among peers has become more routine.
AI anxiety persists as adoption lags
Many employees recognize AI’s potential to boost efficiency but worry about its impact on near-term job security and workloads during implementation. Despite the proliferation of AI tools, only about one-quarter of employees regularly experiment with AI tools, while another quarter have yet to start, reflecting uneven adoption and preparedness. This gap is even more pronounced in retail and healthcare, where around 40% of workers are not using AI tools at work or in their personal lives. Overall, more than half of employees (53%) believe new technology will affect their job security, signaling persistent anxiety as AI adoption accelerates.
“For employers, AI adoption is a challenge, but it should also be a catalyst,” said Adam Pressman, Mercer’s US & Canada Employee Research Leader. “Employees want to understand their employers’ AI roadmap. When organizations manage workloads, clarify skill priorities, and invest meaningfully in development, AI can become a pathway for growth for both employers and employees, rather than a source of fear.”
Employee sentiment varies across industries
Employee experience continues to diverge across industries and demographics. Across all sectors, lower-income employees (earning up to $60,000) and hourly workers report heightened financial and mental health challenges. At the same time, women and experienced professionals cite concerns around schedule predictability and fairness in pay and progression. These issues are particularly pronounced in the healthcare and retail industries.
In contrast, employees in high-tech and financial services, particularly on-site workers, managers, and those with five to ten years of tenure report some of the strongest engagement gains.
Flexible work and time-off practices keep employees engaged. Nearly eight in ten employees (78%) can fully use their paid vacation time, and 74% can take time off when they choose. Additionally, 70% say paid time off adequately supports mental health and family care needs. Employers that pair flexibility with clear expectations can strengthen their workforce’s trust and resilience.
Recommitted, but with conditions
Amid challenging times and a more constrained hiring environment, employees are doubling down on what they can control. Engagement remains high, with 73% of employees not seriously considering leaving their organization—up from 68% in 2023—and nearly three-quarters are confident they can achieve their career goals at their current employer. This trend is especially prominent in high-tech and financial services, where visible internal mobility and fewer external opportunities reinforce staying put.
Although anxiety about job security has increased, employees express greater confidence in their employers than in the broader economy—underscoring the importance of credible leadership and consistent communication.
While employees are clearly engaged, their recommitment to their employers is conditional. Employees are closely watching whether internal job postings lead to real movement, whether development is feasible alongside day-to-day work, and whether leaders follow through on communicated plans.
About Mercer’s 2026 Inside Employees’ Minds
Mercer’s 2026 Inside Employees’ Minds findings are based on a survey of more than 4,500 US employees, conducted between September 3 and October 4, 2025. The survey examined employees’ unmet needs and concerns related to economic uncertainty, AI-driven workplace change, job security, financial well-being, mental health, flexibility, and career development. Learn more about the survey here.
About Mercer
Mercer is a business of Marsh (NYSE: MRSH), a global leader in risk, reinsurance and capital, people and investments, and management consulting, advising clients in 130 countries. With annual revenue of $27 billion and more than 95,000 colleagues, Marsh helps build the confidence to thrive through the power of perspective. For more information about Mercer, visit mercer.com, or follow us on LinkedIn and X.
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Ashleigh Jang
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