Pension is preferred employee benefit for staff

A pension is the most highly-rated employee benefit, ahead of flexible working options and cash bonuses.

According to the 2008 Return on Pension Expenditure survey by Alexander Forbes Financial Services, 81% of workers say a pension is important. This was followed by flexible working arrangements and cash bonuses, cited by 70% and extra holiday (60%).

The survey also found that benefits are important in recruiting staff, with three-quarters of employees citing a good company pension scheme as important when considering a new job, up from 68% the previous year However 38% of employers say they are unclear about whether their pension is appreciated by staff or is effective in recruitment and retention.

David Marlow, director Alexander Forbes, said vast sums of money are spent by employers on pensions each year, which is set to increase after 2012. “There is now a clear and urgent need for employers to better understand and measure their return on pension investment if they are to reap the reward on this expenditure as better corporate performance,” he said.