Employees were asked what matters more to them, but employers may be in the dark
With the cost of living consistently pressuring Canadians’ budgets, a pay rise might be expected to top the list of what people need right now, but long-terms goals matter too.
New research from HOOPP and Angus Reid Group, found that 77% of business owners believe that their employees would choose a wage increase over a pension, but this is contrary to previous studies by HOOPP which revealed that 61% of workers would prefer retirement benefits.
Employers who offer retirement benefits consistently rank retention (64%) and recruitment (59%) as the top benefits of doing so and 58% of employers who added or improved retirement benefits in the last year report higher than usual productivity, compared to just 34% of employers who don’t offer them.
Preferring to offer higher salaries is cited by 30% of employers as the reason for not offering retirement benefits, behind limited resources (39%), and cost (56%). Two thirds of employers are offering higher wages to attract talent to their business compared to 34% offering retirement benefits, although the survey shows the gap has narrowed slightly since 2022.
“Workers may want pensions even more than their employers know,” said Ivana Zanardo, Head of Plan Services, HOOPP. "Employers want to remain competitive in a difficult labour market and it's easier to stay ahead if you understand, and can offer, what the workers you're trying to attract and retain are looking for in terms of compensation."
Reducing employee stress
Most business owners said they want to reduce employees’ financial stress from rising inflation and interest rates, and 82% cite retirement benefits as a cost-effective way to do that.
And employers can also see the benefit to the economy of assisting their employees with their retirement goals:
• 82% agree that without access to good pensions, workers will become a burden on the taxpayer
• 79% agree that without good pensions in place, the economy will suffer
• 76% agree that businesses have a responsibility to offer a pension plan that workers can access to have an adequate income in retirement
“It’s encouraging to see momentum continue to build for retirement benefits,” said Zanardo. “The hope is that dialogue between businesses, government, the retirement industry, and workers will help employers overcome obstacles to offering retirement benefits. Greater access to retirement benefits could help give employees long-term stability in an ever-changing economy, while helping employers experience the well documented improvements to recruitment, retention and productivity that come with them.”
