employee benefit package crucial to recruitment
Workplace savings and pensions in general are absolutely changing the recruitment landscape. They’re increasingly being seen as a key part of an employee’s benefit package and I think there are two things driving that.
One, there are more and more pensions available to employees in the UK. Auto-enrolment means that everybody has to have access to a workplace savings vehicle, and I think secondly pensions freedoms means that now that people can get access to their money at retirement in a way that they want to do so, that makes them more engaged with their savings. So the way that people save for their pension, and the way that their employer helps them save for their pension, is increasingly important in recruitment.
I think employees will look more and more when they’re seeking new employment at the quality of the pension scheme that their employer offers. Now quality can be measured in a number of different ways. Firstly, how much is being contributed by the employer. That’s of course a key factor, but there are other things that are important. What are the range of fund choices that are offered by that pension provider? Do they give the employee enough choice to invest their money as they wish to do so?
And secondly, the pension freedoms that I mentioned a minute ago, does the pension scheme that’s chosen allow the employee to take their money out of their pension in a way that they want to on their terms?
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