Jessica O'ConnorBusinesses that help employees take an active role in their pensions are also seeing stronger financial results, according to research from Scottish Widows.
The Retirement Realities: Unlocking The Workplace Benefits report, produced with research agency Opinium, surveyed 1,000 senior decision-makers and 2,000 employees across the UK.
It found that two-thirds (64%) of companies that actively educate staff on pensions reported “very good” financial performance – compared with just 18% among those that do not.
The data suggested a clear link between financial outcomes and employer generosity.
Among firms contributing over 8% of an employee’s salary to pensions, 41% described their performance as “very good”, compared with only 19% of those performing “okay”.
Just 11% of top-performing firms offer the minimum 3% contribution required by law.
Graeme Bold, managing director, workplace and intermediary wealth at Scottish Widows, said: “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.”
The connection between benefits and business outcomes extends beyond pensions. Firms that provide healthcare, enhanced maternity, or extended paternity leave above statutory minimums were also more likely to report strong financial results.
According to the study, 88% of employers believe pension benefits directly affect company performance, while 91% said they play a key role in recruitment and retention.
Yet, nearly a third (29%) of employees have left or considered leaving their job due to dissatisfaction with pension offerings, citing poor communication (26%) and limited access to benefits (21%).
Bold added: “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.”
