A new survey has revealed how senior decision makers within leading UK businesses are managing their employee benefit schemes. It found:
- Majority (60%) of UK businesses do not offer employees support to help them understand their workplace pension
- Almost half (48%) do not hold internal discussions about employees’ pensions scheme
- Over a quarter (28%) prioritise other workplace benefits (e.g., free food and drink in the office, gym memberships, socials) above workplace pension schemes
The majority of UK businesses are failing to offer employees adequate support to help them better understand their workplace pensions, new research from Mintago has revealed.
The financial platform surveyed 365 decision-makers within UK-based organisations. It found that over two fifths (43%) of organisations regularly review and evaluate their employee benefits strategy.
Just 35% speak with employees to understand which benefits and perks best suit their needs. Over a quarter (28%) of UK managers claim that their business prioritises workplace benefits such as free food and drink in the office, gym memberships or socials (etc.) above workplace pension schemes.
Mintago’s research found that the majority (60%) of decision makers do not think their organisation provides adequate support to help employees better understand their workplace pension scheme.
Over a third (36%) of UK managers said their business uses autoenrollment without providing any further pension guidance to employees. Almost half (48%) claim that there is little internal discussion about employees’ pension or the scheme they offer.
Chieu Cao, CEO of Mintago, said: “The UK’s pension engagement gap is widening at a worrying rate, leaving many financially unprepared for retirement. As such, simply providing an auto-enrolment pension scheme is not enough. Businesses must take on a more active role in increasing employee pension engagement.
“It is vital that organisations regularly review their benefits and workplace pension scheme to ensure they are meeting the needs of their employees. Simple steps such as speaking directly with employees regarding their preferred benefits and improving access to workplace pension information would be a strong start. So too would exploring the various ways in which they might improve pension engagement – such as exploring the prospect of the Salary Sacrifice Pension Scheme.
“As an employer it can appear to be an overwhelming task, but progress is possible. Through consultancy and internal review, employers can provide the right tools to help employees better understand their retirement finances now. In doing so, organisations will gradually help to build a more financially engaged – and consequently more satisfied – workforce.”