Employers optimistic on AI while workers report burnout and strain

• Key Insight: Learn why employers' AI adoption is outpacing worker support systems.  
• What's at Stake: Rising burnout and financial strain could undermine productivity and retention.  
• Supporting Data: Nearly 80% of employers optimistic; 52% report AI positively impacts operations.  
  Source: Bullets generated by AI with editorial review

With technology and AI rapidly advancing, most employers are optimistic about their company's future, but many workers are feeling burned out and financially strained, according to a new report. 

That was just one of the major disconnects between employer perceptions and worker realities that was revealed in new research from Transamerica Center for Retirement Studies (TCRS). 

Catherine Collinson, CEO and president of Transamerica Institute and TCRS, said employers and workers are on two different trajectories. "Employers are embracing new technologies, especially AI," she said. "They're full speed ahead and yet they need their employees." 

"With the big focus on advanced technologies, there were plenty of indicators in the report that employers may not be paying adequate attention to their employee base and workplace transformation that is not only inevitable, but is needed," Collinson added. "It takes people to transform the workforce."

Almost eight in 10 employers are optimistic about their company's future and 52% indicate that advanced technologies are positively impacting their overall business and day-to-day operations. 

Workers aren't feeling nearly as positive. In fact, 49% say they're often exhausted and burned out. Four in 10 report frequent feelings of anxiety and depression, 42% say they're often overwhelmed and unmotivated, and 31% say they regularly feel isolated and lonely.

Read more: Rising costs turn financial strain into a way of life for workers

Even though 70% of employers say they're concerned about employee mental health, just 27% offer an employee assistance program.

"The employee assistance program is an absolutely critical benefit that can help so many employees in different life situations," Collinson said. "It's more than just mental health and can help with caregiving resources and other things. That's a real gap in the employer space right now."

The Employers, Workers, and the New World of Work report, which was put together in conjunction with Transamerica Institute, is based on surveys of 1,900 U.S. for-profit employers in 2025 and more than 6,100 workers at for-profit companies.

Other findings from the report

In addition to mental health challenges, many workers are feeling financial strain amid the rising cost of everyday goods, gas prices and healthcare expenses. According to the report, 43% of workers say they have trouble making ends meet, and 26% have taken on an additional job or side hustle due to financial strain from inflation in recent years. 

While  86% of companies recognize that their employees are increasingly stretched thin financially, 54% have concerns about workers who take on a second job or side hustle to bring in extra income. 

Collinson said companies have an opportunity to bridge this disconnect by reviewing compensation policies and benefits utilization. "Are there benefits in there that could be helping employees save money if they were fully aware of them and using them?" she said. 

The study also highlights a gap around caregiving responsibilities and flexible work arrangements. About 36% of workers are caregivers, including 16% who are currently providing care and 22% who have done so in the past.

Read more: Rising medical costs, inflation amplify employee financial stress

While 93% of employers say they support caregiving employees, relatively few have formal programs in place. The most common offerings include unpaid leave (36%), paid leave (35%), online resources or tools (22%), and benefits that offer discounts or subsidies for backup care (22%).

Additionally, 86% of workers say it's important for their employer to offer flexible work arrangements, and 93% of employers recognize that. Still, relatively few offer robust options. The most common include flexible work schedules (54%), the ability to adjust hours as needed (49%), and hybrid work arrangements (37%). 

"Our research findings illustrate opportunities for employers to reevaluate their workforce management priorities, including training and development, mental health resources, flexible work arrangements, caregiving support, phased retirement options, and benefit offerings," Collinson said. "By doing so, they can create win-win solutions for themselves and their employees."