UK - Companies must be more selective and aggressive in their employee communications if they want to boost scheme take-up, delegates at the recent Pension Show were told.
Hewitt Bacon & Woodrow’s head of quantitative investment research, Sally Bridgeland, said a one-size-fits-all approach to employee benefits missed the point.
She said companies must overhaul their communications packages and target individual groups if they wanted to boost take-up rates.
She said Hewitt research showed most employee benefits communications tended to focus on the “financially confident” – 10% of the UK population. New workers form 16%, the “making progress” category 18%, low paid workers 39% and near retirement 17%.
As an example, Bridgeland said to boost take-up rates among the low paid – who do not save due to more immediate financial pressures – firms should offer one-off lump sums as an incentive.
But Bridgeland stressed: “What motivates one employee will not motivate another. Firms need to target the use of their communications and investment options and recognise the diversity within their workforce.”
Hewitt’s research also found employee satisfaction levels typically dropped a year after they joined a company and declined steadily for seven years before satisfaction levels began to rise again.
Bridgeland said employers could reduce the fall in employee happiness levels by making clear exactly what benefits they received when they started work.
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