According to research carried out by Vitreous World on behalf of Jobsite (a leading job board for skilled professionals) on 500 UK professionals, 82% stated that a pension scheme is more important to them than a bonus or private healthcare.
It was found that more than two thirds - before accepting a job - take into account the pension policy, on which they place more importance than other benefits. A performance related bonus was viewed as important by 65% of those interviewed; 51% stated that medical care is an important benefit and 55% highlighted mental health and stress support as important.
By comparison, the least important benefits quoted were the season ticket loan; time off to volunteer for good causes and a day off for birthday celebrations.
Kate Smith, Head of Pensions at pension provider Aegon, told People Management:
“Eighty-two percent is an extremely high statistic, which is great news. It shows that auto-enrolment is working and people are hearing the pension-saving message.”
The research also showed that there was a significant difference between what employees valued in their benefits packages and what they actually received. For example, only 23% of employees received private medical cover as part of their rewards package, the same number as those stating they had access to mental health support services. This is despite the 51% placing great importance on private medical cover.
Jamie Smith-Thompson, Managing Director at pensions advice company, Portafina said cost was an issue which forced HR to make choices over which benefits to provide. She stated:
“The pension budget is the largest so employers have to provide it by law. But with benefits like PMI, employers either don’t provide it at all or provide it only for those in senior roles.”
Jeff Fox, Principal at Aon Employee Benefits said:
“There has always been a balancing act between what the employer deems to be important versus what the employee wants. Will we ever see a complete alignment? Arguably not until we see an employer fully place the employee at the front and centre of the benefits strategy.” He added:
“Most employees recognise that they may not want to work for the rest of their lives - they ‘work to live’ not ‘live to work’. A pension will never be a cool benefit, but we should give employees credit for seeing its importance.”
Nick Gold, CEO of Jobsite commented:
“Many employers often believe that offering higher salaries is the way to improve the quantity and quality of applicants they receive through the door for a vacancy. Nowadays professionals are not just looking for more money in their pockets right now – especially where many feel they are subject to pressures of increasing working hours. Some are thinking more long term, and how their employers can help them reach their retirement goals sooner.”
“The answer might lie instead in diversifying their attraction strategy by highlighting other elements of their company benefits packages, in particular their pension schemes. Despite the media attention pension funds are currently receiving as big businesses struggle financially, workers are still placing trust in their employers to help them grow their retirement investment funds. Employers would be well advised to address this demand and advertise new vacancies accordingly. In doing this, potential employees looking to safeguard and maximise their finances in later life apply for jobs that offer them truly valued benefits.”
