The majority of UK employers believe that pension-related benefits are key to business success, according to new research from Scottish Widows.
The study found that 88 per cent of firms view pensions as important to financial performance, while 91 per cent say they play a crucial role in attracting and retaining staff.
The firm’s Retirement Realities: Unlocking the Workplace Benefits report, produced in partnership with Opinium, surveyed 1,000 senior decision makers responsible for workplace pensions and 2,000 employees across the UK.
It found that while most workers are satisfied with their pension, those who are not are prepared to move jobs. Almost a third of employees have either left or are considering leaving their role due to dissatisfaction with their pension, with two-thirds citing uncompetitive schemes, a quarter pointing to poor communication and one in five saying benefits are difficult to access.
The findings suggest that firms taking a more active role in promoting pension engagement and contribution are reaping measurable business rewards. Two-thirds of employers that educate staff about pensions report very good financial performance, compared with just 18 per cent among those that do not.
Additionally, more than two in five firms contributing over 8 per cent of salary into employee pensions report very good financial performance, compared with 19 per cent of firms reporting only okay performance. In contrast, only 11 per cent of top-performing companies pay the minimum 3 per cent contribution required under auto-enrolment.
Meanwhile, companies offering broader workplace benefits such as healthcare, enhanced maternity or extended paternity leave are also more likely to perform well financially. Among the best-performing firms, just over half offer healthcare, 48 per cent provide enhanced maternity leave and 39 per cent offer extended paternity leave above the statutory minimum.
Scottish Widows said the research shows the clear business case for investing in employee financial wellbeing and using pension benefits as a core part of workforce strategy.
Scottish Widows managing director, Workplace and Intermediary Wealth Graeme Bold says: “At the moment we’re in the middle of the industry-led Pension Attention campaign, which is a great opportunity to put pensions at the top of the discussion agenda. But pension engagement is evergreen, so it’s important companies actively discuss their employees’ benefits package all year round.
“Technology has made this far simpler and it’s becoming increasingly easier to engage with your pension through an app. For example, our Scottish Widows app gives members of our workplace schemes access to all of their pensions and investments in one place, along with tools, support and other products to help them protect their future. This helps employers enable their employees to check 24/7 that they’re on course for their desired lifestyle and put retirement planning at their fingertips.
“Workplace pensions are a powerful, yet often overlooked way to shape employees’ long-term financial wellbeing. Our data shows that by investing in pension engagement, employers are not only supporting their employees’ future, but also unlocking stronger financial performance today. This helps to set the foundations for an engaged and productive workforce, which attracts and retains top talent.”