5 Things The Employee Benefits World Taught Us This Week – January 23rd
A lot happens in the employee benefits world every week and this column aims to share with you the latest news from the world of employee benefits with the 5 main benefits stories from the week published right here every Friday.
1. A third of employees want their employer to provide financial education
New research to come out this week has found that 36% of employees want their employer to provide support with retirement planning, with 46% of those between 35 and 44 years old saying they want such support. Despite that, only 21% of employees surveyed had been told about the upcoming changes to pension laws by their employer.
Financial Education is becoming an important topic in the employee benefits world, with more and more employees wanting their employers to provide it as an employee benefit. Here at DAM, we already conduct such sessions on our clients’ own premises for their staff and we’ve seen that the engagement is very high. For more information on these sessions, feel free to drop me an email at firstname.lastname@example.org.
2. Employers should increase the flexibility of absence policies
Lancaster University’s The Work Foundation has published a report urging employers to make sickness absence policies more flexible. The report discusses the fact that 2 out of 5 employees could suffer from a fluctuating or chronic condition by 2030, meaning that better policies to help such employees continue working rather than go into long-term unemployment are essential.
3. Twice as many people are working past retirement
Research from Cass Business School has found that the number of people working past the traditional retirement age has almost doubled in the last 20 years. Predictions even say that by 2030, there could be nearly 20 million over 60s in the workplace.
The fact that people are working longer, keeping their skills and experience in the workforce, is certainly a positive thing, but there are of course challenges for employers as well. As Reward Guide’s Nick Martindale says: “Employers will have to find ways to engage, motivate and reward older staff for their efforts if they are to get the most out of them as employees, and make use of the considerable experience they will have acquired.”
4. Three quarters of employers are noticing the burden auto enrolment is having on their admin
76% of employers who have already staged for auto enrolment are noticing the extra burden the legislation is having on their admin staff. Although the main work for auto enrolment comes at the point of staging, there is ongoing work to be done to manage the schemes, something which employers are feeling the effects of.
5. Real pay has gone up!
Office for National Statistics research has found that the total pay received by UK employees is 1.7% higher than it was last year. Regular pay has also increased, by 1.8%. This is good news for employees as the gap between pay and inflation – which sits at 0.5% - has widened, meaning real wages are increasing.