Pension schemes are under-used as recruitment tools, according to new research by the Trade Union Congress (TUC). But where does this leave smaller companies?
A pension is a key part of the pay package offered by an employer, but according to the TUC,
the majority of companies make no reference to it in their job advertisements.
Research found that only 6.3 per cent of newspaper job advertisements made any mention of pensions. It said companies who fail to mention pensions in job advertisements are missing a golden opportunity to sell themselves as good employers.
The TUC said that many job seekers, particularly young people, fail to understand the value of a good pensions scheme, or how to make comparisons between different types on offer. It said that employers should be able to provide applicants with a straightforward overview of their scheme, and job hunters should look more closely at advertisements to see what is on offer.
TUC general secretary Brendan Barber said: "Employers who offer a pension but who don’t advertise it when looking for new staff are missing a trick. If all job adverts mentioned whether or not the company provided a pension, and stated the level of employer contribution, it would help individuals choose a prospective employer. This would encourage jobseekers to start regarding a pension as important a factor as salary and holiday entitlement when considering any career move".
However, the British Chamber of Commerce (BCC) criticised the TUC’s comments as failing to consider smaller businesses who cannot afford to finance company pension schemes.
Bill Midgley, president of the BCC, said: "This would be tantamount to shaming employers into providing contributions for their staff and ignores the essential fact that many smaller employees simply find pension provision cost prohibitive."
Mr Midgley said employees should instead be encouraged to save for their retirement.
To find out more about your obligations as an employer, visit: http://www.thepensionservice.gov.uk/employer/home.asp
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