UK employers could lose up to 10% of their workforce if they fail to provide competitive pension benefits, new research from Scottish Widows has found.
According to its ‘Retirement Realities: Unlocking the Workplace Benefits’ report, one in 10 employees could leave their job if they felt dissatisfied with their pension package.
The most common reason employees were unhappy with their pension benefits was because they were uncompetitive compared with other employers (68%).
A quarter (26%) cited a lack of communication around benefits, while 21% said their dissatisfaction stems from benefits not being easy to access and 16% said benefits are confusing.
A further one in five (19%) employees that were dissatisfied with their benefits said they would definitely consider leaving, while 39% were on the fence, saying they may or may not consider leaving their job altogether.
However, Scottish Widows said over three quarters (78%) of employees were, for the most part, satisfied with their pension benefits.
Susan Hope, retirement expert at Scottish Widows, said: “Pension benefits are no longer a ‘set and forget’ part of the reward package and employees are paying close attention to how their scheme stacks up against others.
“If benefits feel uncompetitive or unclear, people may vote with their feet, leaving employers on the back foot when it comes to retention. Regularly reviewing and communicating pension benefits is key to ensuring employees recognise their value and feel supported in planning for their future.”
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