Increasing employee engagement in the workplace
For employer use only
Have you encouraged your employees to check their pension?
Auto-enrolment has successfully introduced 7.6 million people to workplace pensions. Now in its fifth year, all qualifying workers are automatically enrolled in a workplace pension scheme. You, as employers, then make contributions to their pensions every month.
So, is your job here done? Well, not quite.
While the measures put in place mean that your employees are growing their retirement savings, this doesn’t automatically put them on a direct flight path to the retirement of their dreams. In fact, many of your employees have no idea what’s in their retirement pot, how or where their contributions are invested, or how much they need in retirement and may not fully appreciate the real benefit of their workplace pension.
It’s vital that employees appreciate the value of their workplace pension and why they are saving in the first place. And you, as an employer and ‘trusted source’, could help by encouraging them to engage with their savings regularly so they don’t just let their pension pot sit unnoticed, unchecked and unloved.
Boosting employee engagement
54% of employees believe their employer has a responsibility to help them plan for retirement but 75% feel they aren’t being actively encouraged to check their workplace pension during working hours. While that may not be welcome news, it certainly highlights an opportunity for you to engage with your workforce.
This is where an employer can really make a positive impact.
As you have invested significant cost, time and effort in setting up a workplace scheme, it can be frustrating if your employees don’t value it. So, how can you encourage them to make the most of it?
40% of employees that we spoke to, told us that checking their pension every quarter would be enough (with 71% saying 15 minutes a month as a preferable time commitment). By setting aside regular time to check their pension, staff are more likely to see the value of these important benefits and will start to think about saving and financial preparations for retirement.
Why does the employer play such an important role?
The workplace is at the heart of pension saving for most people and is the perfect place to encourage employees to engage with pensions. A sustained approach to increase engagement is key here, as it will ultimately help to build employees’ knowledge and empower them to take personal responsibility, helping them to get ready for retirement (and exiting the workplace).
Even a small change, (perhaps in the form of encouragement), from an employer, can make a big difference to engagement levels in the workplace. Our own experience in the workplace has shown a 30% increase in employee engagement levels when the employer has endorsed the pension and encouraged employees to take action.
Encouraging employees to find out more about their pension will help them gain an appreciation of the benefit that you are providing them with, which in turn can lead to better levels of employee loyalty, retention and employee financial health.
As an employer, consider the benefits of promoting your pension scheme and encouraging your employees to check it regularly.
- Communication is key. Try to avoid ‘investment speak and pension jargon’.
- Take action. You’ve offered your employees a benefits package, why not remind them what it consists of?
- Encourage employees to check their pensions. Make employees aware that it is ok for them to check their pension online during work hours.
- Advertise advice. If you offer a workplace advice facility, remind employees of this, and how they can access it.
We believe in empowering employers to speak positively about their workplace pension schemes. By telling your employees that it’s OK to check their pension at work, you are helping them develop a new habit. Eventually, reviewing their pension becomes as routine as checking their payslips.
Let your employees know that while life often gets in the way of keeping track of their pension, work doesn’t have to.