Aviva’s research report into employer and employee attitudes to workplace pensions, savings and benefits.

1. Working Lives
second report
February 2013
Working life in the UK today
Employees’ enjoyment of work
I don’t like where I work 4%
I only come to work for the money 13%
I don’t mind coming to
work, but would rather not 22%
I enjoy my work 60%
Employees’ key workplace concerns
Working in unsafe or unhygienic conditions 9%
Bullying in the workplace 7%
Lack of a pension /
inadequate pension provision 18%
Lack of development opportunities 33%
Lack of opportunity for promotion 32%
Stress of the job 38%
Uncertainty about job security 43%
Level of pay compared to the cost of living 65%
Employers’ key business concerns (Q1 - 2013)
All businesses
Uncertainty about the business’s ability
29%
to survive in the economic downturn
Adopting more efficient systems /
24%
processes / technology
Cutting jobs 19%
Keeping up with
employees’ pay / benefits 13%
package expectations
Keeping up with
new legislation, 14%
e.g. pension changes
Keeping ahead of the competition / innovating 42%
Employers’ confidence in the financial situation
of their business vs. employees’ confidence in
their own financial situation
All businesses Employees
15% 3% 52% 34% 18% 26% 12% 29% 4% 8%
Extremely Quite confident Neither confident Not very Not at all
confident or unconfident confident confident
Top five benefits employers offer vs. those most valued
by employees
Annual/performance related bonus 1 Annual/performance related bonus
Money purchase/defined
contribution pension scheme 2 Money purchase/defined
contribution pension scheme
Health Insurance 3 Health Insurance
Life insurance/death in service 4 Life insurance/death in service
Company car/car scheme 5 Company car/car scheme
Top five benefits valued by male and female employees
Annual/performance related
bonus 1 Annual/performance related
bonus
Money purchase/defined
contribution pension scheme 2 Money purchase/defined
contribution pension scheme
Life insurance/death in
service 3 Health Insurance
Health Insurance 4 Life insurance/death in
service
Company car/car scheme 5 Company share scheme/free
shares
Employees in private sector firms report
their pension situation as follows:
2% say they pay into the
pension their employer offers,
but their employer doesn’t
say their employer
36% 4% pays into their pension
say they pay into the pension but they don’t
their employer offers, as
does their employer
35%
11% 5% say their employer does
say their employer not offer a pension
offers a pension
but neither of believe they
them contribute are not eligible
to join their
company
pension
Employers’ awareness of the new auto-enrolment
pension regulations (by business size)
Small businesses Medium businesses Large businesses
Aware
83% 89% 90%
Not aware
17% 11% 10%
Employers’ readiness for introducing auto-enrolment
7% 1% 13%
2
2%
Need to start
1
22%
START
20% No discussion
plans
13%
6%
27%
16%
9%
3
7%
19% 21% Started
planning
4 Well
advanced
25% 21%
FINISH
23%
27%
36%
5 Fully
prepared
48%
All businesses Small businesses Medium businesses Large businesses
Employees’ intentions regarding auto-enrolment
I will stay in the scheme
and contribute more 19%
than the basic amount
I will opt out of the
scheme immediately as
17%
I cannot afford to make
the contributions
I will stay in the scheme
and be very pleased 16%
that I have a pension
I will stay in the scheme as I
11%
wouldn’t bother to opt out
I will opt out of the
scheme as I prefer to make 6%
my own arrangements Leave the scheme
4%
when I get around to it
Don’t know 28%
How often employers review their employee
benefits packages
Small businesses Medium businesses Large businesses
55%
49%
36%
26%
19% 19%
14% 16% 17%
11%
10%
10%
6% 7%
3%
Every 6 Every year Every 2 years Less often Never
months
When employers communicate
with workers about their pensions
All businesses
38%
29%
23% 26%
21% 18%
The benefits The pension When we Along with When We tend not to
are explained provider/ make changes the annual legislative communicate
when staff trustee to the scheme statement changes with people
join the communicates of the fund’s happen about their
company with them value pensions
How often employees want to hear about workplace savings
24% 7%
Once a year is When something
enough in my 19% 15% changes (e.g. I
annual statement On a regular basis, Accessible at all get promoted)
similar to my times via a secure
payslip details intranet site
6% 11%
As part of an
5% I don’t want to
on-going discussion
Less than 14% know (I’m not
with my employer Don’t know interested)
once a year
about what is
(2-3 years)
available and why I
should save
How employers communicate with
workers about their pensions
We have an intranet site with regularly 20% 2% 12% 37%
updated information available
We have a query point (e.g. a
nominated person or intranet site) 15% 8% 16% 21%
so people can raise questions
As part of regular line manager 17% 14% 20%
17%
conversations
When people are promoted 8% 11% 10%
10%
or have salary increases
On a regular basis via email 18% 9% 14% 26%
We use social media to 1% 0% 2%
2%
encourage discussion
All businesses Small businesses Medium businesses Large businesses
Most difficult and challenging aspects of
automatic enrolment for very large employers
Very large employers Total UK employers
Managing the cost 43% 42%
On-going compliance management 33% 25%
Communicating automatic enrolment to employees 32% 23%
Updating the existing pension 30% 24%
How different communications approaches would
encourage employees to save more
If someone showed
If someone showed me 9% me how to save more
what I personally need
to save for retirement
23% If someone
showed me what
the benefits of
14% saving are
If someone showed If someone showed
me what I might me how to manage
lose if I didn’t save 12% 12% my money better
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