In many industries, where suitably qualified and highly experienced staff are becoming more and more difficult to find, the issues of recruitment and retention have become more and more relevant to businesses who want to remain competitive in their marketplace.
Of course, paying more than the market rate will always be a good first step towards attracting good quality staff and retaining those that you already have, but in today's modern business environment, the situation is a little bit more complex. With it being increasingly difficult for people to get on the housing ladder, along with ever rising rents, it's also becoming more and more important for people to save towards their retirement. This means that people of all ages often have a number of competing financial issues to deal with as well as the usual issues of work and family.
Auto enrolment was introduced to help more people start saving or save more towards their environment, and has so far been seen to be a success, with lots of people who would never have thought about putting savings away for their retirement now doing so. We're only half way through the process at the moment and have yet to see the 1.2 million small and micro companies auto enrol their staff, but the signs are that the more enlightened companies are planning to use their pension provision as an important recruitment and retention tool.
That's one of the findings of a new study. Surveying 400 SMEs, 30% of companies are planning to (or will at least consider) contributing more than they are required to when they begin the auto enrolment process. This is up from the 17% that said the same last year. Over half (57%) of those companies that intend to pay more than the legislative minimum stated that they intend to do so in the belief that it will help with the retention and recruitment of employees. Of all the companies questioned as part of the survey, 43% thought that having a pension provision that is attractive helps retain employees whilst more than a third (33%) think that it will help improve their company's image when trying to attract new employees.
This news shows just how auto enrolment positives aren't just for the employees of a business, the business itself benefits too, as recruitment and retention can be very expensive for businesses of all sizes. It also puts an end to the perceived differences between large and small firms, the former being seen as the more generous with their pension provision. It's clear that more and more smaller employers want to offer their staff this fantastic benefit and are willing to put their money where their mouth is.