So what keeps YOU in your current job? New research has revealed that employers might be missing a simple (and very old fashioned) trick when it comes to retaining their best staff.

Years ago, a spanking new company car every couple of years was often seen as the way to hold onto the personnel who drove a business… along, perhaps, with an office and secretary of your own.

Those incentives are long gone. Today, “ESG” is the flavour of the month, and staff (pretty much as standard) expect to be able to work flexibly, have good facilities in the office, and for their employer to have ethical policies in place.

But a new piece of research shows that one of the perks that often historically kept staff from handing in their notice still really matters to employees… although not every company has got the message.

We’re talking about the workplace pension.

New research from digital pension providers Penfold reveals that the workplace pension has now become one of the strongest drivers of employee retention and morale.

It is also, says the company, the most overlooked incentive.

According to their research, a whopping nine in ten UK employees say their workplace pension influences whether they stay with their employer… or head off down the road.

At a time of high employment, the average UK worker staying in their job for a mere 4.5 years and some skills in huge demand, you might think that every company would put a generous pension at the top of their incentives list.

Pensions an “underused retention tool”But, after receiving feedback from 2,000 employees and 500 SMEs, Penfold concluded that too many British businesses treat pensions as a “compliance exercise” instead of what they could potentially be: “One of the most influential and most underused tools to support financial wellbeing, morale and long-term retention.”

In fact, over half of the SMEs (53.6%) they spoke to contribute the bare legal minimum into staff’s pension funds, while fewer than one in seven (14%) offer matched contributions.

Worryingly, almost half of employees (47%) report that their own pension contributions are set at the statutory minimum ­– putting them at risk of under-saving for their retirement.
Says Chris Eastwood, CEO and co-founder at Penfold: “At a time of rising living costs and economic uncertainty, employees are thinking much more carefully about their financial security.

“For many, their workplace pension is a signal of how seriously their employer takes their long-term wellbeing – not just today, but in the future. Yet for employers, this still sits firmly in the background, being viewed as a compliance requirement; important, but largely fixed.

“Our research shows that pensions influence how secure, committed and supported people feel at work, even if they’re not talked about day to day. That makes them one of the most important, and underused, tools employers already have.”

Other key findingsSome of the other key findings from the report include the fact that attracting staff is also easier with a good company pension in place: 57% of employees say a pension is “very important” when they are deciding to join a new company – a higher figure than any other benefit.

An overwhelming majority of employees, meanwhile (95%) say that an employer contribution of 3 to 4% is not enough to make them want to stay.Eastwood adds: “This isn’t just about retirement planning. Financial confidence plays a huge role in wellbeing and morale at work today. Yet more than half of employees don’t know the current value of their pension pot, and many don’t fully understand how their scheme works.”

He concludes: “When employees feel confident about their financial future, they’re more likely to stay, engage and commit. A better workplace pension strengthens retention without requiring a complete overhaul of existing benefits.”

So how much retirement security does YOUR workplace pension provide you?

Using the RetireEasy LifePlan you can see at a glance just how secure your retirement finances will be based on the current level of contributions from yourself and your employer.

If you see that it going to produce a shortfall in terms of the standard of living you are hoping to achieve, perhaps now is the time to see whether you can increase YOUR contributions… and if your employer is prepared to match that.