While nine in 10 (85 per cent) employers that reported decreased employee productivity over the past year cited burnout as a major problem, investing in retirement benefits appears to have a positive impact on these issues, according to a new survey by the Angus Reid Group on behalf of the Healthcare of Ontario Pension Plan.
The survey, which polled more than 750 employers, found respondents that offer retirement savings plans cited employee retention (78 per cent), recruitment (69 per cent) and reducing employees’ financial stress (46 per cent) as the top benefits of doing so.
Read: 84% of employers say they’re concerned about a retirement income crisis: survey
Employers that invested in retirement benefits are less likely to be concerned about the impact of employee burnout on their business in the coming year (64 per cent) compared to those that invested in compensation (72 per cent) and those that didn’t invest in any employee benefits or compensation (72 per cent).
Similarly, employers that invested in retirement benefits in the past year were less likely to be concerned about the impact of employee productivity (45 per cent) than organizations that invested in compensation (55 per cent) and those that didn’t invest in either areas (60 per cent).
Although a majority (83 per cent) of employers that don’t offer retirement benefits believe their employees would prefer a higher salary over any — or a better — pension, nearly two-thirds (63 per cent) of workers said they would prefer a pension, a finding that’s consistent with results from 2023.
Nearly two-thirds (63 per cent) of employers said regardless of economic conditions, companies could afford to offer workers good pensions if they wanted to, including 41 per cent of organizations that currently don’t offer any retirement benefits. At the same time, more than half (56 per cent) of employers that don’t offer retirement savings plans cited cost as the top consideration.
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The vast majority of employers continue to agree that Canada is facing an emerging retirement income crisis (86 per cent) and that without good pensions in place, the economy will suffer (84 per cent).
Roughly three-quarters (78 per cent) agreed if workers aren’t able to access good workplace pensions during their working lives, they’ll become a burden on the taxpayer, while a similar percentage (75 per cent) said they feel responsible for offering a pension that workers can access for an adequate income in retirement.
“There’s a persistent divide in how employers think their employees feel about retirement benefits and how Canadian workers actually feel,” said Ivana Zanardo, the HOOPP’s head of plan services, in a press release. “Business leaders need to listen to their employees when they express how important retirement benefits are to them. Providing a secure pension or retirement plan is not just a benefit but a crucial step businesses need to take to support the long-term productivity and financial well-being of their workforces.”
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