More than two-thirds of British workers (67%) say they would like it to be compulsory for employers to provide details of all employee benefits offered within job adverts, including pensions, according to a new study from AXA.
And, 42% of senior managers at UK firms also back the compulsory inclusion of this information in vacancy adverts, enabling job applicants and existing staff to compare benefits and basic salary between competing companies.
Steve Folkard, head of pensions & savings at AXA, said: “Clearly there is broad recognition among employers and their staff that pensions and other benefits are as important as the salary. So it makes sense that the complete remuneration package should be a key consideration for all job applicants.
“For employers it is the first opportunity they get to communicate the value of their benefits package to prospective employees potentially giving a firm the edge in the battle to recruit the best people. But it shouldn't end there. Effective ongoing communication is the best way to ensure that employees understand the real value of what their employer is providing."
AXA's call has been echoed by former pensions minister, the Rt Hon John Denham, who said: "We need to make it easier for employees to identify which companies offer the best deal on pensions and pay."
Despite their apparent confidence in the value of benefits packages offered by their companies, just 27% of senior managers surveyed claim to benchmark their own firm's benefits packages against competitors'.
In addition, less than half (49%) of senior managers say their firm has conducted a review of the benefits packages they offer within the past year.
Around one-in-four (24%) senior managers say they have not reviewed benefits packages for at least three years, with 9% claiming they have never reviewed the packages on offer and a further 15% unsure when this last happened.
Folkard said: “Maintaining a competive edge for the best employees doesn't necessarily mean competing purely on salary. Firms would be well advised not only to benchmark their benefits against competitors but also to communicate the value of those benefits to their staff. That way they can expect to derive good returns on their benefit spend.
“For example 71% of companies spending more than £250,000 on benefits say that their employees do not appreciate the costs and therefore the value of their benefits package. 58% of these companies recognise the need for them to communicate more effectively in order to boost this awareness.”
