Pension Schemes Reappraised (June 2010)

Is it worthwhile providing pension schemes as part of an employee benefits package?

As the new UK coalition government begins its work, there appear to be even more questions being asked by employers concerning the implementation of the new pension rules, which are enforceable from 2012.

If the SME sector is to play its part in the economic recovery then it is self evident that successful organisations will require well motivated employees to stay the course and deliver business plans. The 70th anniversary of Dunkirk was a timely reminder of how individuals can collectively and with modest resources produce a performance that exceeds the wildest expectations.

With the provision of pension schemes becoming compulsory and therefore integral to all reward packages, some forward thinking employers are starting to recognise that the new rules may create as much of an opportunity as the threat that they were initially perceived to be. In particular finance directors are now starting to move this topic into their strategic planning. After all, in business planning terms two years is not long!

Clearly, whilst the size of an individual�s salary is often the most significant motivational factor, it is not necessarily the case for all employees. Indeed for some people, the advantage of a specific benefit can far outweigh the actual cost to an organisation.

For example pension provision within an employee benefits package can be viewed as extremely important, especially when access to advice is also part of the offering. The added dimension of advice can be seen as invaluable because it enables employees to understand and personalise the decisions they make.

As perception is the preserve of the recipient and by recognising that �benefits� mean different things to different people, those organisations that have taken the time and the trouble to ask their staff what really motivates them have gained valuable insight and often been surprised at some of the answers. (Please see separate article on the merits of conducting staff surveys.)

For many there is recognition that the �credit crunch� has forced a reappraisal of priorities and life plans. Taking care of �tomorrow� is a serious issue and one that requires personal responsibility, covering all the areas of retirement, health and personal development.

At Cartlidge Morland, listening to client needs, evaluating their requirements and then effectively communicating the solution remains core to what we do. If understanding how benefits can play a key role in motivating your work force is of interest to you, please contact us now for an initial free consultation.

Cartlidge Morland is an independent employee benefits consultancy. We provide benefit services to a wide range of partnerships, family companies, PLCs, charities and governmental organisations. We also provide financial advice to private clients, investment management and mortgage broking services

Phone us on 020 7709 5560 or complete the online contact form