More than four-fifths (83%) of employee respondents whose employer currently contributes to their workplace pension value these contributions, according to research by The People’s Pension.
Its survey of 1,008 UK employees and 500 UK-based HR decision makers also found that 54% of employees would increase the amount of money they contribute to their workplace pension if their employer did the same.
The research also found:
- 46% of employer respondents do not promote their pension scheme as an employee benefit to prospective staff, yet 69% of employee respondents consider employer pension contributions important when looking for a new job.
- 57% of employer respondents think the amount they contribute to their employees’ pension does not make a difference to recruitment, and 56% believe the amount paid in employer pension contributions does not make a difference employee retention.
- 24% of employer respondents will increase the amount they pay in pension contributions for some or all employees over the next 12 months, and 18% will promote their organisation’s pension scheme to existing staff over the upcoming year.
- 90% of employee respondents think that auto-enrolment was a good idea.
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Darren Philp (pictured), director of policy at The People’s Pension, said: “Employers have played an important part in making auto-enrolment a huge success and helping millions of people save towards their retirement. Five years on from its introduction, the majority of employees now value their employer pension contributions as an important benefit, yet there’s a clear disconnect between how highly they regard it and how much their employers think they do.
“This research shows the high value that employees put on employers’ pension contributions as part of their wider reward package. Under auto-enrolment, employers have to provide a pension for their staff, so they might as well make the most of it.
“By promoting their pension contributions when recruiting, reminding staff about the importance of saving for retirement, and where possible, increasing employer contributions above the minimum requirements, [employers will] not only help their staff plan for the retirement they deserve, but also benefit their business by helping them to recruit and retain staff.”