All UK employers must now comply with the auto-enrolment legislation, meaning that they have to facilitate pension savings for their employees and pay into them. However, far from simply another box ticked, defined contribution pension benefits can engage and inspire you workforce whilst encouraging them to make provisions for their future.
A good pension provider will:
- Engage members
- Balance the needs of all stakeholders
- Address the issues for the long-term including sustainable and ethical considerations
A good employer, in terms of pension provision will:
- Ensure the company pension plan is appropriate for their employees
- Choose a pension plan that suits the core values of the company and employees
- Communicate effectively with employees as to how their investments are managed
- Actively encourage employees to plan for retirement
Pensions that are aligned with the core values of a company and its staff are more likely to engage employees and motivate them to plan for the future. Choosing a pension scheme that is sustainable where the pension portfolio actively works with companies that are committed to renewable energy and a greener future not only underpin your sustainable values as a company but will put you in better stead with your employees.
Involve your staff
Another key factor in choosing a pension scheme is in how you communicate with your employees during the process. Say for example, you wish to change providers to find one with values more aligned to your business, why not involve your staff from across the business in the decision-making process. Employees who are involved from the start will be more inclined to take an interest in planning for retirement and are more likely to be invested in budgeting for this.
Furthermore, employers who actively encourage their staff to plan and save for their future will attract and retain good quality employees. A good pension plan is not often the first thing you look for when considering applying for a role but if the benefits are clearly communicated it might make the difference in decision making as a company that demonstrates that it is truly invested in its employees’ future is desirable to work for. In addition, employers are in a good position to ensure their staff understand how pensions work in terms of tax relief, government legislation, tax and in the wider picture of financial planning.
Please don’t hesitate to contact us to talk about any aspect of financial planning including pensions in the context of individual planning or if you are a business owner. Michael Lapham or a member of our Financial Planning team are always on hand to provide expert advice and support.