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The latest statistics from our 2024 Drewberry Workplace Pensions Survey show that over a quarter of UK employees would switch jobs for a company providing better pension contributions and financial advice.
Your company’s employee benefits play a significant role in hiring and retaining staff. So, it’s vital you get it right. This article aims to give you some top tips for improving your financial employee benefits.
Nearly half of UK employees stated that it’s “very important” for a potential employer to provide a good pension. Here’s how other employees ranked its importance:
For some employees, a good Workplace Pension is enough to make them jump ship, with 26% saying higher pension contributions and better financial advice would be enough to switch jobs.
This highlights the value employees place on their workplace pension. If your pension scheme doesn’t meet employee expectations, you leave the door open for another employer to win them over.
Recognising how important a good pension is for employees, we wanted to delve deeper to understand how satisfied they are with their current provision.
We asked “Do you feel your employer contributes enough towards your pension?” Although the majority of employees were satisfied with what their employers offer, nearly one-fifth said they should contribute more.
Employers are legally obliged to contribute a minimum of 3% of their employees’ salary, but employees want more. In fact, over half of UK employees said it was “very important” that their employer did contribute more than the 3%.
As the value of a robust Workplace Pension becomes increasingly clear, it’s crucial to ensure your pension scheme is living up to expectations.
Regularly reviewing your pension arrangements not only aligns with best practices but also maximises the benefits for you and your employees, securing a brighter financial future for everyone involved.
Richard Noble
Senior Consultant, Employee Benefits
60% of employees said that they would actually prefer higher pension contributions over other benefits. This indicates the importance of a strong Workplace Pension scheme.
In our 2024 Employee Benefits and Workplace Satisfaction Report, we also found that enhanced pension contributions were in the top five benefits employees wanted to receive from their employer.
This excellent insight can help you to tailor your employee benefits package to better suit employee preference. When successful, you have a better chance of keeping your top talent on board.
With 26% of employees willing to change jobs for an employer with a better Workplace Pension, it’s in your best interest to re-evaluate your company’s benefits to retain your top talent. It’s important to:
Start by conducting a thorough review of your current Workplace Pension scheme. This will ensure it meets the needs of your employees.
Reviewing your Workplace Pension helps to reduce the annual management charges. By regularly comparing different pension schemes, you can find more cost-effective pension options for your business.
Lowering these charges also means employees get to keep more of their contributions, and save more as a result.
Joanne JonesEmployee Benefits Consultant
Offering a range of financial wellbeing benefits can improve your employees’ financial education and security. This can help them make informed decisions when it comes to their pension savings. Consider:
By integrating these benefits into your package, you can support your employees in achieving their financial goals and help to reduce any financial stress.
For employees to get the most out of their Workplace Pension scheme, it’s important for them to understand the benefit. Considering nearly 20% of employees aren’t clued up on their pension, it might be that you do offer a good pension but it’s not being communicated well.
Staff also don’t understand pension tax relief or salary sacrifice, so effective communication and education will go a long way.
When your employees have a robust understanding of their benefits, it helps them to see the true value of their pension scheme. For example, if salary sacrifice options are available but staff don’t know how it works or the tax benefits associated with it, they might not find any value in their pension plan.
To ensure your Workplace Pension scheme is a great fit for you and your employees, reviewing the scheme regularly is essential. You also need to offer good pensions education and financial advice, and most importantly, communicate the retirement benefits well.
By doing this, you can help to prevent your top talent from jumping ship.
If you’d like help to review your Workplace Pension scheme, get in touch on 02074425880 or email help@drewberry.co.uk. Our employee benefit consultants are specialists, and will help you find out if your pension scheme is right for your needs.
Employee benefits can be a headache. But our specialists do this day-in, day-out, offering first class service when you need it most. Here’s why you should talk to us:
