Employees working for SMEs rate pensions as a more important benefit than flexible hours, bonus schemes, healthcare, or lifestyle perks such as gym membership.
Overall more than half of employees questioned (57 per cent) said a strong workplace pension was “very important” when considering a potential job offer, placing it above these other commonly offered benefits.
These findings indicate that employees are increasingly prioritising long-term financial security and wellbeing over shorter-term job perks. The research was carried out by Penfold among 2,000 employees for SMEs.
The research also challenges assumptions about age and pensions. Younger employees showed similar levels of interest in pension quality as older workers when evaluating job opportunities, which Penfold says suggests long-term financial security is a concern across all career stages.
However, Penfold’s research found that just over half of SMEs said they give the same or higher priority to other workplace benefits — such as travel assistance (59 per cent), work socials (55 per cent) or salary advance schemes (50 per cent) than to workplace pensions.
Penfold co-founder and CEO Chris Eastwood says: “There’s a clear gap between what employers think will attract people and what jobseekers actually care about.
“Perks can make a workplace more enjoyable, but when someone is choosing between job offers, they’re asking which employer is investing in their future.”
He said this research also challenges assumptions about age and pensions. Younger employees showed similar levels of interest in pension quality as older workers when evaluating job opportunities, suggesting long-term financial security is a concern across all career stages.
Eastwood adds: “Economic pressure affects everyone. Housing costs, inflation, and wage stagnation mean people are thinking more seriously about their financial future, regardless of age. The pension is no longer background noise, it’s part of how employees judge whether an employer takes their wellbeing seriously.”
With competition for talent still high, the findings suggest employers who treat pensions as a core part of their reward offering, rather than a background compliance requirement, may be better placed to attract and retain staff.
“Security now matters more than novelty,” Eastwood says. “Employers who recognise that shift will have a real advantage.”