top of page
pension_plainbanner.png

How to use pension benefits to attract and retain talent

Updated: Jan 17, 2023

Over the years, employees’ desires and demands have evolved. If you are an employer or an HR manager, you are more than likely bombarded with a wide range of tips for keeping different generations of workers happy – a quick Google search on “company benefits ideas” brings up over one billion results.

However, when it comes to attracting and retaining top talent, what do employees really want from your company?


Employees place importance on their pension Your employees place more value on their pension than you realise. According to The People’s Pension, employees are less concerned about gym memberships and ‘office yoga’, and more concerned about pension benefits. In fact, nearly 70% of employees consider employer pension contributions among the most valued employee benefit.

With this in mind, here are some tips on how you can use pension benefits as a tool to create a happy workforce. Offer a pension scheme that is paid on gross salary The National Pensions Act only requires employers to make contributions of 5% on their employee’s first CI$87,000 of income. This is known as “maximum pensionable earnings”. For highly skilled workers earning above this bracket, paying 5% of their gross salary (as opposed to just their maximum pensionable earnings) will amount to thousands of extra dollars in their pension fund each year. Go a little further – put an extra 2% into your employees’ pension In the Cayman Islands, paying 5% into your staff’s pension is mandatory. This does pose a potential for workers to view their employer’s bare minimum payments as more of an entitlement rather than a competitive benefit.

If your company has exceeded its financial goals at the end of the year, consider thanking your staff by paying an additional 2% to their pension contribution. Offer a choice of pension providers People like having options. Psychology explains that choices allow us to feel empowered and in control. By letting your staff decide their pension provider, not only are you allowing them to feel empowered, but you are also avoiding the HR headache of switching plans should they be with a different provider.

If your company is not a Chamber Pension member, why not add us as an option? Chamber Pension has competitive returns, with top international investment managers maximising our members’ funds. There are never any hidden or additional admin fees, and we provide all of our employers and HR managers with helpful tips and guides to make your life easier. Provide staff with financial wellness and literacy programmes The Bank of America reports that employees expect their employer to support their financial wellness, including bringing in financial experts to provide additional training on fiscal matters. Give your staff access to the information they need through regular communication and education. Our series Teaching your team financial literacy is an excellent tool to improve employee morale and retention.

Chamber Pension also provides company visits, covering any pension topic your staff would like to learn more about. Book your free seminar with one of our experts by contacting us today.

46 views

Comments


bottom of page