Many companies make sure to keep salaries competitive and don’t worry about much else. But most Canadian workers say they’d consider changing jobs to get a better retirement plan
Most Canadians would consider changing jobs for retirement benefits, a new survey has found.
The latest ADP Canada Sentiment Survey found that retirement benefits like pensions and group registered retirement savings plans can play a big part in an employee’s decision to change jobs. According to the survey, 77% of Canadian workers would consider leaving their current jobs if, all other things being equal, another employer offered a retirement plan.
“These numbers are an indication that employers should pay close attention to what’s important to their employees, and to what is being offered by their competitors,” said Sooky Lee, division vice president and general manager of HR business process outsourcing at ADP Canada. “Most companies track salaries to make sure they are competitive, but many forget about other compensation factors, such as retirement programs. Workers, on the other hand, take a holistic view of what’s being offered and, as the survey shows, will make a switch if they see more value in the long term.”
The survey found that employees in British Columbia were most likely to consider leaving their job for better retirement benefits, with 88% saying they would consider making a change. Those in Quebec were least likely, with only 69% saying they’d consider leaving for better retirement plans. And while most (70%) employees of small companies (2-50 employees) said they’d consider changing jobs for better retirement plans, a far greater percentage of employees at midsize companies with 51-500 employees (86%) and large companies (74%) said they’d consider making a change.
“We were surprised to see the difference in willingness to change jobs among employees in mid-sized companies versus smaller organizations,” Lee said. “This could be that employees in larger organizations expect their employers to have more robust programs around retirement.”
And employers shouldn’t assume that younger employees won’t be as interested in retirement benefits. In fact, the study found no significant difference in interest between millennials and older employees.
“Workers in the 18-to-34 age group are just as interested as their older colleagues in having retirement support,” Lee said.
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New CPP won’t benefit baby boomers: Investment specialist
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The latest ADP Canada Sentiment Survey found that retirement benefits like pensions and group registered retirement savings plans can play a big part in an employee’s decision to change jobs. According to the survey, 77% of Canadian workers would consider leaving their current jobs if, all other things being equal, another employer offered a retirement plan.
“These numbers are an indication that employers should pay close attention to what’s important to their employees, and to what is being offered by their competitors,” said Sooky Lee, division vice president and general manager of HR business process outsourcing at ADP Canada. “Most companies track salaries to make sure they are competitive, but many forget about other compensation factors, such as retirement programs. Workers, on the other hand, take a holistic view of what’s being offered and, as the survey shows, will make a switch if they see more value in the long term.”
The survey found that employees in British Columbia were most likely to consider leaving their job for better retirement benefits, with 88% saying they would consider making a change. Those in Quebec were least likely, with only 69% saying they’d consider leaving for better retirement plans. And while most (70%) employees of small companies (2-50 employees) said they’d consider changing jobs for better retirement plans, a far greater percentage of employees at midsize companies with 51-500 employees (86%) and large companies (74%) said they’d consider making a change.
“We were surprised to see the difference in willingness to change jobs among employees in mid-sized companies versus smaller organizations,” Lee said. “This could be that employees in larger organizations expect their employers to have more robust programs around retirement.”
And employers shouldn’t assume that younger employees won’t be as interested in retirement benefits. In fact, the study found no significant difference in interest between millennials and older employees.
“Workers in the 18-to-34 age group are just as interested as their older colleagues in having retirement support,” Lee said.
Related stories:
New CPP won’t benefit baby boomers: Investment specialist
Canadians slow spending after age 70: Study
