An article you can share with your corporate and business clients about pensions.

I am sending this article out so that you can use a form of it in any communications you have with corporate clients.

To be honest, whilst I have no doubt this article will be hugely interesting for you to read, this is the kind of useful content that your clients will see as added value.  

Think getting employees to care about their pension is only good for them? Think again.  

According to a new study, UK businesses that actively engage staff in their pensions are also seeing stronger financial performance. Better pension awareness actually helps firms’ bottom line.

The Scottish Widows study found 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, plus 2,000 employees.

Its new report, “Retirement Realities: Unlocking The Workplace Benefits” found two-thirds (64%) of UK businesses that take an active role in educating employees on pensions reported 'very good' financial performance.  

What is most interesting, however, is that the quality of financial performance drops significantly, with 18% reporting this as just ‘okay’, in instances where firms do not play an active role promoting colleague pensions.  

There also seems to be a link between companies that provide more generous pension contributions and their own corporate financial stability.

When asked what percentage of an employee’s salary their employer contributes to their pension by default, more than two in five (41%) of UK firms that pay over 8% into their employees' pensions report 'very good' financial performance.  

This compares to only 19% among firms that report having an 'okay' financial performance. Just 11% of well-performing firms provide the minimum 3% default contribution required under automatic enrolment.

Graeme Bold, managing director for 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.”  

A seemingly positive relationship between benefits and performance is not limited to pensions. The report also found that firms offering more generous non-pension benefits are also more likely to report strong financial performance.  

For example, just over half of firms (51%) offering healthcare, 48% offering extended maternity and 39% offering paternity leave above the statutory minimum see the best financial results.  

Hiring and firing staff can be expensive.  Good pensions and benefits can also be a smart employee retention tool for companies. More than nine out of 10 (91%) UK employers believe pension-related benefits are important for attracting and retaining employees in their sector.  

While the majority of employees are happy with their workplace pension, the research shows that those who aren’t will vote with their feet. Nearly a third (29%) have already or are considering leaving their job, with 68% dissatisfied by the lack of competitive pension offering. Over a quarter (26%) cited low levels of communication and benefits being difficult to access (21%) as their main reasons for being dissatisfied.  

So for companies looking to attract and keep the best staff and boost their bottom line better pension provision could be a good place to start.

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