Do employees currently value pension benefits as part of the remuneration package?
After basic salary, pension schemes are usually the most costly element of the remuneration package, For a pension to be an effective benefit, employees must understand its value to them. In general, pension arrangements that are simple to understand are more likely to be valued by employees. However, the degree of flexibility and choice within a pension scheme should depend on the profile of the employees. For example, a pension scheme offering a wide range of sophisticated investment choices may be suited to a company in financial services but may not be suited to a catering company. Similarly young and junior employees may be attracted to employers offering opportunities for career advancement, work life balance and competitive salary. However, older and senior employees may be more attracted to competitive retirement packages, health care benefits and good salary.
