Struggling to attract good talent? Your pension may be putting them off
Eight out of ten people (77%) take workplace pensions into account when evaluating a new role, according to Cushon. It’s a critical benefit – one that both encourages people into the business and helps persuade them to stay.
What employees think about workplace pensions
How much bearing does the quality of a workplace pension really have on a candidate's decision whether to accept a job offer?
Outside of the salary, it's the second most important workplace benefit after time off and flexibility.
In our survey of 2,000 workplace pension scheme members, and 500 HR managers, 55% of employees said pension contributions are the benefit that matters most to them after salary and time off. That's ahead of health and wellbeing (42%), family and lifestyle support (32%), and learning and career development (30%). More than two-thirds (68%) also said a weaker pension than their current one would make a new role less attractive, with 61% being less inclined to accept the job.
Crucially, workplace pensions matter to candidates of all age groups, with 77% of respondents agreeing that the quality of workplace pensions is an important consideration when weighing up whether to accept a job offer or not.
Perhaps surprisingly, the majority (65%) of 18 to 24-year-olds also agree, showing that pensions are a strategic staff benefit across the board. Three-quarters (74%) of respondents think the quality of a workplace pension is a reflection of how much the employer cares about them. With this in mind, it makes perfect sense that pensions would carry so much weight in candidates' decisions.
Put simply, for many employees, pension arrangements say more about the employer's attitude toward their employees than 'intangibles' like company culture.
A small shift with big returns
The message from these findings is clear: to treat pensions as a tick-box exercise is to sell them woefully short.
In the battle to attract and retain the best people, pensions play an increasingly decisive role. And turning your pension into a really attractive benefit is easier than you might think.
According to our research, 79% of employers think employees feel confident about their pensions. But only 61% of employees agree with that same statement.
If this gap makes anything clear, it's that making pensions work harder as a recruitment and retention tool doesn't necessarily require radical intervention. Employers can make a big impact with job candidates by simply showcasing the value of what they already offer more clearly.
The same goes for the people you already employ. Ultimately, a pension is all about investing in your peoples’ future wellbeing. But the value of that investment won't come through effectively unless employees understand what’s on offer and feel supported every step of the way.
Download Cushon’s Workplace Pensions Report 2026: From Compliance to Competitive Advantage.
Supplied by REBA Associate Member, Cushon
Cushon is a workplace pensions and savings provider with an award-winning proposition.
