UK – More than half of employers fail to keep their employees posted on their pension arrangements, according to a new survey.
The Chartered Institute of Personnel and Development has released a survey which found that just 46% of companies keep their employees posted on pensions arrangements – although 88% told staff about pension arrangements during recruitment.
CIPD assistant director general Duncan Brown said: “Employers are failing to communicate their pensions arrangements effectively after recruitment, which means that the full value of their rewards package is not appreciated, and employees don’t often understand the full importance of issues such as saving enough for their retirement.”
A third of employers asks staff not to discuss pay and conditions with colleagues, while one fourth asks not to discuss wages with people outside work.
“Secrecy about pay could cause problems,” warned Charles Cotton, the CIPD’s adviser on reward and employment conditions.
“Wherever practical, we believe that employers should be open about how salary levels are determined and how pay progression is managed.
“That way staff understand what the organisation’s values are and is prepared to pay for and what it expects in return,” he added.
According to the survey “spurred by the threat of government intervention”, 48% of the employers surveyed plan to carry out by audits in 2004, compared with 2003’s 28.5%.
Under one fifth of employers plan to raise their retirement age at their organisation over the next two years, “the proposed law on age discrimination being the main reason for the decision”.
Flexible benefits were also described as “ increasingly popular among employers” in 2004.