TORONTO, Oct. 07, 2021 (GLOBE NEWSWIRE) -- Employers that offer retirement savings benefits report higher levels of employee productivity over the past year and have greater optimism for the future, according to the Canadian Employer Pension Survey, a survey of 845 Canadian employers by HOOPP and Maru/Matchbox.
In addition, employers that offer retirement savings benefits believe it is very important to recruitment, retention and helping employees manage stress.
“The survey found that a majority of employers see a connection between reducing employees’ financial stress and productivity,” said Steven McCormick, SVP, Plan Operations, HOOPP. “And a majority also agree that it’s important to offer retirement benefits to reduce stress.”
He added: “Employers value the various benefits that they offer, but there appears to be a positive association between offering retirement benefits and improved productivity.”
Specific findings included:
- 73% of employers agree that employees feeling financial stress are less productive. 76% agree it is important to offer benefits that will reduce employees’ financial stress.
- The vast majority of employers who offer retirement benefits say they are very or extremely important to recruitment (83%), retention (86%) and the stress management of employees (85%).
- Among companies offering any sort of retirement benefits, 44% say employee productivity has been better than normal over the past year. This was significantly better than among companies not offering retirement benefits, of whom 29% say productivity improved.
- The more robust the retirement savings program, the more likely employers were to report improved productivity. Of those offering the most robust type of plan – a defined benefit pension – a net 38% reported higher productivity. (The net figure is based on the number of employers who reported higher productivity, 51%, minus those who reported reduced productivity, 13%.)
- For those offering defined contribution plans, a net +31% (47% - 16%) reported higher productivity. For those offering group RRSPs, the net figure was +21% (36% - 15%). And for those not offering any retirement benefit, the net figure was +7% (29% - 22%).
These findings from Canadian employers mirror findings from another recent study, in which 2,500 Canadians were asked about the same issues. That third annual Canadian Retirement Survey from HOOPP and Abacus Data, released on June 17, found working Canadians share very similar views:
- Two-thirds of employees with pensions said pensions are important for keeping them at their current job (71%), making a new job seem attractive (73%), reducing stress at work (71%), and keeping [them] focused and productive (69%).
- Those who don’t have pensions also see the value in them – among all workers (not just those with pensions), the vast majority (79%) say pensions are important to making a job seem attractive.
The employer study from Maru/Matchbox also found 66% of all employers expect revenue growth in 2021 over 2020, and 47% expect to increase their employee base in the year ahead. Eight in 10 (85%) said they are optimistic they will be successful beyond 2021.
“Taken together, these two separate studies paint a clear picture on how valuable retirement savings benefits are for both Canadian employers and employees,” said McCormick. “While the pandemic has been difficult for many Canadian employers, those who have been able to weather the storm are optimistic about the post-COVID future and half plan to hire. In this context, where employers will find themselves competing for talent, it is notable how important retirement savings benefits are for both attracting and retaining staff as well as increasing productivity.”
The studies also found consensus on the future of retirement in Canada, and it is not an optimistic view. The Abacus survey found 67% of Canadians believe there is an emerging retirement crisis and, in the recent study, 70% of employers said the same.
Further, both sides agree that employers play an important role. More than three-in-four Canadians (77%) say that employers have a responsibility to offer a pension plan so that employees can have adequate retirement income, and 56% of employers say it is their responsibility to help set employees up for success in retirement.
Employers also see value in portability, which allows workers to transfer their retirement savings from their current workplace retirement plan to a new employer. Most employers (58%) say portability of retirement benefits is at least very important, while just 4% prefer non-portability. And 70% believe that governments should incent the creation of scalable and portable retirement benefits for employees.
Today’s release is the second of three retirement research projects from HOOPP this year. The third, slated for November, will make the employer case for offering workplace retirement savings, including considerations for how all stakeholders, including employers and government, can make it easier for Canadians to save for retirement.
“HOOPP conducts this research because we believe it is important that our members and wider stakeholders understand the value of a good pension as well as the overall state of retirement security in Canada,” said McCormick. “Everyone benefits – employees, employers, governments and the economy as a whole – when Canadians have retirement security.”
The 2021 Canadian Employer Pension Survey was conducted in May 2021 online with 1,094 business owners and business decision makers, 845 of whom are employers. The margin of error for a comparable probability-based random sample of the same size is +/- 1.96%, 19 times out of 20. See more detailed results here.
The 2021 Canadian Retirement Survey by Abacus Data was conducted between April 19 and 27, 2021. The margin of error is + / - 1.96, 19 times out of 20. See more detailed results here.
About the Healthcare of Ontario Pension Plan
HOOPP serves Ontario’s hospital and community-based healthcare sector, with more than 610 participating employers. Its membership includes nurses, medical technicians, food services staff, housekeeping staff, and many others who provide valued healthcare services. In total, HOOPP has more than 400,000 active, deferred and retired members.
HOOPP operates as a private independent trust, and is governed by a Board of Trustees with a sole fiduciary duty to deliver the pension promise. The Board is jointly governed by the Ontario Hospital Association (OHA) and four unions: the Ontario Nurses’ Association (ONA), the Canadian Union of Public Employees (CUPE), the Ontario Public Service Employees' Union (OPSEU), and the Service Employees International Union (SEIU). This governance model provides representation from both management and workers in support of the long-term interests of the Plan.
About Maru/Matchbox
Maru is a world leading CX and Insights Software & Advisory Services company. Maru was founded to disrupt the data and insight delivery industry with a combination of Software & Advisory Services delivering data in real-time via a unique service model. Maru helps its clients make informed decisions in near real-time by combining proprietorial software, deep industry experience and access to the best minds in research. Maru’s flexible service model means our clients can choose to self-serve our Software directly to create, launch and analyze projects; or choose to utilize our Software with knowledgeable support from insights experts. Maru successfully delivers major national and international CX and CEM programs for Enterprise organizations.
About Abacus Data
Abacus Data is an innovative, fast-growing public opinion and marketing research consultancy. We use the latest technology, sound science, and deep experience to generate top-flight research-based advice to our clients. We offer global research capacity with a strong focus on customer service, attention to detail and exceptional value. We are the only research and strategy firm that helps organizations respond to the disruptive risks and opportunities in a world where demographics and technology are changing more quickly than ever. To learn more visit: abacusdata.ca
Media Contact: James Geuzebroek, Senior Manager, Media & Public Affairs, HOOPP at jgeuzebroek@hoopp.com
