Employers want better benefit design

Improving benefit design is the most cited objective for employers in the next 12 months, followed by preparing to auto-enrol staff into a workplace pension, according to Aon Hewitt’s annual Benefits and trends survey.

The research found that improving the design of benefits was a top objective for 34% of respondents, while auto- enrolment topped the list for 25%, up from 18% in 2010.

One-fifth of respondents said they already operated auto-enrolment or were ready for it. Over 41% had started work on auto-enrolment, but 26% had not.

Nearly three-quarters (70%) had considered the impact of auto-enrolment on communication and engagement, while 60% had considered the implications for insured benefits and default investment options.

The main challenges for employers in the next year were said to be cost (36%), employee engagement (35%) and legislative change (16%).

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