Employers not offering one missing out on 'loyalty bonus'
A survey by the National Association of Pension Funds in the United Kingdom finds a workplace pension is the most important employee benefit an employer can offer, according to three quarters of 1,154 full- and part-time employees polled in February 2008.
However, less than one-half (48 per cent) have confidence in pensions when compared with other forms of retirement saving.
The survey also revealed those employers not offering a pension are missing out on a “loyalty bonus” from staff. Almost one-half of employees in these companies would feel greater loyalty to that company if they did offer a workplace pension.
When rated against other company benefits, men value pensions more than women, with the latter believing flexible working arrangements are more important. This shows, for some women, the “now factor” of meeting family commitments is a higher priority than retirement income.
Forty per cent of employees view pensions as the best method of saving for retirement, compared to others, but for those employees without a workplace pension, real estate (33 per cent) is seen as a better option than a workplace pension (25 per cent).
“Today’s workers still value pensions as a fundamental part of their employment package and believe they remain the best way to save for retirement,” said Joanne Segars, chief executive officer of the National Association of Pension Funds. “For employers there is a clear message that providing a workplace pension is rewarded by increased employee loyalty.”
