Working Lives

second report
February 2013

Working life in the UK today

Employees enjoyment of work

I dont like where I work 4% I only come to work for the money 13% I dont mind coming to work, but would rather not 22% I enjoy my work 60%

Employees key workplace concerns

Working in unsafe or unhygienic conditions Bullying in the workplace 9% 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 businesss ability to survive in the economic downturn

29%

Adopting more efficient systems / processes / technology

24%

Cutting jobs

19%

Keeping up with employees pay / benefits 13% package expectations Keeping up with new legislation, e.g. pension changes

14%

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
15% 3% 52% 34%

Employees
18% 26% 12% 29% 4% 8%

Extremely confident

Quite confident

Neither confident or unconfident

Not very confident

Not at all confident

Top five benefits employers offer vs. those most valued by employees
Annual/performance related bonus Money purchase/defined contribution pension scheme Health Insurance Life insurance/death in service Company car/car scheme

1 2 3 4 5 1 2 3 4 5

Annual/performance related bonus Money purchase/defined contribution pension scheme Health Insurance Life insurance/death in service Company car/car scheme

Top five benefits valued by male and female employees

Annual/performance related bonus Money purchase/defined contribution pension scheme Life insurance/death in service Health Insurance Company car/car scheme Annual/performance related bonus Money purchase/defined contribution pension scheme Health Insurance Life insurance/death in service 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 doesnt say their employer pays into their pension but they dont

say they pay into the pension their employer offers, as does their employer

36%

4%

say their employer offers a pension but neither of them contribute

11%

5%
believe they are not eligible to join their company pension

say their employer does not offer a pension

35%

Employers awareness of the new auto-enrolment pension regulations (by business size)
Small businesses Medium businesses Large businesses

Aware

83% Not aware

89%

90%

17%

11%

10%

Employers readiness for introducing auto-enrolment

7%

START

20%

1
7%

No plans

2%

1%

Need to start discussion

13% 27%

13% 22%

6%

16% 19% 21%

Well advanced
23%

Started planning

9%

25% 36%

21%

FINISH
27%

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 than the basic amount 19% I will opt out of the scheme immediately as I cannot afford to make the contributions

17%

I will stay in the scheme and be very pleased that I have a pension

16% I will stay in the scheme as I wouldnt bother to opt out Leave the scheme when I get around to it

11% I will opt out of the scheme as I prefer to make my own arrangements 6% 4%

Dont know

28%

How often employers review their employee benefits packages

Small businesses Medium businesses
55% 49% 36% 26% 14% 10% 6% 16% 17% 19% 19%

Large businesses

11% 10%

7% 3% Every year Every 2 years Less often Never

Every 6 months

When employers communicate with workers about their pensions

All businesses

38% 29% 23% 21% 26% 18%

When we Along with The benefits The pension make changes the annual provider/ are explained to the scheme statement trustee when staff of the funds communicates join the value with them company

When legislative changes happen

We tend not to communicate with people about their pensions

How often employees want to hear about workplace savings

24% 7%

Once a year is enough in my 19% annual statement On a regular basis, similar to my payslip details As part of an on-going discussion with my employer about what is available and why I should save

Accessible at all times via a secure intranet site

15%

When something changes (e.g. I get promoted)

6%

Less than once a year (2-3 years)

5%

Dont know

14%

I dont want to know (Im not interested)

11%

How employers communicate with workers about their pensions

We have an intranet site with regularly updated information available We have a query point (e.g. a nominated person or intranet site) so people can raise questions As part of regular line manager conversations When people are promoted or have salary increases On a regular basis via email We use social media to encourage discussion All businesses Small businesses
20% 2% 12% 37%

15%

8%

16%

21%

17%

14%

17%

20%

10%

8%

11%

10%

18%

9%

14%

26%

1%

0%

2%

2%

Medium businesses

Large businesses

Most difficult and challenging aspects of automatic enrolment for very large employers
Very large employers Managing the cost On-going compliance management Communicating automatic enrolment to employees Updating the existing pension Total UK employers 43% 33% 32% 30% 42% 25% 23% 24%

How different communications approaches would encourage employees to save more

If someone showed me what I personally need to save for retirement

9%

If someone showed me how to save more

23%

If someone showed me what the benefits of saving are 14%

If someone showed me what I might lose if I didnt save

12%

12%

If someone showed me how to manage my money better