11/10/2010
The National Association of Pension Funds (NAPF) has called on businesses to outline their pension plans to potential employees.
Bringing pensions to the forefront of the recruitment process, the NAPF have urged companies to outline their pension provisions at the interview stage. According to research from the Association, less than half of employees understood their organisation's pension provisions when they were in the application stage for their current position.
The research, cited in FT Advisor, also shows nearly a quarter of employees only knew there was a pension scheme in their company, after they had commenced their job. In addition, only 12 per cent of job advertisements offer any kind of information on company pension plans.
The NAPF's survey, questioned 200 UK companies on their pension provisions, finding that more needs to be done to bring the issue to the forefront, as pensions can be worth up to 35 per cent of an individual's annual salary package. With 79 per cent of people commenting that they would be attracted to a job with a good company pension, the NAPF's research provides interesting reading for both small and larger organisations.
With growth on the horizon for many SME's, bringing fresh, talented workers into a company can further increase revenue and innovation. As well as improving pension provisions to attract new employees, businesses can generate cash for development by utilising invoice discounting and other financial options.
Speaking to The Press Association about the NAPF's findings, chief executive Joanne Segars said: ''Employers can do a lot more to mention the pension - the lack of pension information in otherwise wordy and detailed job adverts is a concern.''
''It is simply not good enough to say once a job offer has been signed - oh by the way there's a pension.''
It is expected that results of the survey will be made widely public via the Chartered Institute for Personnel and Development (CIPD) and the Recruitment and Employment Confederation.
Sarah Howard