2006
(17/07/2006) Employers and workers call for compulsory inclusion of pensions and other benefits in job adverts
- 67% of British workers call for the compulsory inclusion of all employee benefits and pensions in job adverts, highlighting those companies providing full packages and those offering basic salary1
- 42% of senior managers also back compulsory inclusion of benefits and pensions within job adverts1
British workers and senior managers at UK companies are calling for the compulsory inclusion of all employee benefits, including company pensions, within job adverts, according to a new study from AXA.
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, health insurance, bonuses and other benefits offered on top of salary.
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 amongst 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.
"At AXA, we think it is important to include details of the full remuneration package including pensions to all job applicants because it is a key factor for candidates who are considering accepting a job offer. It is easier to present this detailed information online than it is in a press advert where space is limited. So we look to drive applicants to our website where we can provide more information."
AXA's call has been echoed by former pensions minister, the Rt Hon John Denham, who commented: "I welcome this call from AXA. I made a similar proposal in a Private Members Bill last year which recieved support from across the pensions industry. While the Government's pension proposals will give most people a much stronger foundation for retirement, many will want and need additional pensions savings. 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%) of 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 £250k 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 effecctively in order to boost this awareness."
- Ends -
Notes to Editor
1. CommunicateResearch conducted two surveys on behalf of AXA:
- CommunicateResearch interviewed 1,357 GB employees online between 12th and 18th April 2006.
- CommunicateResearch interviewed 300 directors in charge of employee benefits by telephone between 10th and 24th April 2006. These respondents are responsible for the benefits of approximately 1,106,375 employees, or 5% of the employed workforce (based on Office of National Statistics figures). Numbers of employees to be affected by reduced pensions contributions by employers listed here are based on these figures. Employees not currently members of an employer's pensions scheme have been excluded from the total to ensure accuracy of calculation.
CommunicateResearch is a member of the British Polling Council (BPC) and adheres to the rules of the BPC and the Code of Conduct of the Market Research Society. For further information contact Communicate Research on 020 7152 4010.
More information
If you are a journalist and require further information contact one of our media team
About AXA
AXA is a world leader in financial protection. AXA's operations are diverse with major operations in Western Europe, North America and the Asia/Pacific area. AXA employs 120,000 staff and tied agents and, as of 31 December 2005, had € 1,064 billion in assets under management. AXA reported total IFRS revenues of € 72 billion and IFRS underlying earnings of € 3,258 million for the full year 2005. Our previous company performance is not a guide to how we may perform in the future.
AXA ordinary shares are listed on the Paris Stock Exchange; AXA American Depositary Shares (ADSs) are listed on the NYSE under the ticker symbol AXA.