Copyright scotsman
Scottish Widows, which published the study, says the findings highlight a powerful alignment between workforce wellbeing and commercial success. The report reveals that companies that encourage their employees to contribute above default rates and offer generous benefits packages are outperforming their peers financially. Scottish Widows worked with research agency Opinium to analyse the views of 1,000 senior decision makers with responsibility for pensions at their firms, and 2,000 employees for its report Retirement Realities: Unlocking The Workplace Benefits. The report highlights that the two-thirds of UK businesses which take an active role in educating employees on pensions reported “very good” financial performance. The quality of financial performance drops significantly – with 18 per cent reporting this as just “okay” –in instances where firms do not play an active role promoting pensions. Companies that provide more generous pension contributions also see a positive impact. When asked what percentage of an employee’s salary their employer contributes to their pension by default, more than two in five of UK firms that pay more than 8 per cent into their employees’ pensions report “very good” financial performance. This compares to 19 per cent among firms which report having an “okay” financial performance. Just 11 per cent of well-performing firms provide the minimum 3 per cent default contribution required under automatic enrolment. Graeme Bold, managing director, workplace and intermediary wealth at Scottish Widows, says: “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.” This relationship between benefits and performance is not limited to pensions, says the report. It also says that nine out of 10 UK employers believe pension-related benefits and support are important to their firm’s financial performance, with 91 per cent saying this is important for attracting and retaining employees in their sector. Graeme stresses that it is important for companies to 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”, he adds.
