New research reveals that employers are in danger of underestimating the value employees place on their workplace pension benefit.
hibob, a leading cloud-based HR and benefits platform, this week released part one of its UK Employee Benefits – State of the Nation 2017 series that analyses employee and employer perceptions around pensions – and it seems that employers are getting it wrong.
The research found that:
- 67% of employees see Pension as a critical part of their package particularly when choosing a job (67%), whereas
- employers believe that their employees neither care (60%) or understand (58%) auto-enrolment and
- 75% of employers see it as ‘just another tax on their business’.
The series, an in-depth survey of over 4,000 employees and 500 benefit decision makers, looks at the topic of workplace benefits; from how much businesses are prepared to spend on benefits, to motivations around different products and the truth about millennials and what they want.
hibob’s UK Employee Benefits – State of the Nation 2017 includes the following insights:
- Two thirds of decision makers (66%) say when it comes to offering benefits, they only do the minimum required to meet legal obligations.
- However, more than one in two (54%) workers say a pension is the most important workplace benefit.
- Twice as many Benefit decision makers believe pensions are better for retaining employees (40%) than attracting them (27%).
- One in two (51%) employees say a pension is an important or essential factor when choosing their current job and
- two thirds (67%) say it’s an important part of their overall rewards package.
- One in three employees admit their knowledge about pensions is limited or non-existent (33%).
- Seven in ten (71%) millennials see a pension as a major part of their overall rewards package.
Ronni Zehavi, CEO hibob, commented:
“This research shows not all employers understand their workers as well as they think. Employees are saying they want to be ready for the future – the demand for pensions is strong, however the majority of employers underestimate how important the pension is to workers. We hope this report offers business leaders some additional insight to help them engage with and meet the needs of their workers.”
Lady Barbara Judge CBE, Chairman hibob, Ex-Chair Pensions Protection Committee, commented:
“In our competitive work landscape where attracting and retaining talent can be life or death for a company, ensuring that your business offers the benefits that are important to employees is key. This survey is one of the most extensive of its kind and a wealth of useful information for employers. It will enable them to keep their finger on the pulse and retain an engaged workforce, that will ultimately drive their business forward.”