Half of Swiss employees are open to a change

In view of the rising cost of living and global geopolitical challenges, Swiss employees are looking for security with their employers. A survey by the global consulting firm WTW revealed that half (50%) of employees are currently choosing to stay with their employer. On the other hand, just as many are open to a change, with 16% actively seeking a change. This makes it all the more important for companies to take measures to improve their attractiveness as an employer.

Remuneration continues to be a key factor in making a company attractive to employees and encouraging them to stay with it. In addition to salary (34%), employees also cited job security (34%) and the working environment (33%) as the main reasons for staying with their current employer in this year's survey.  

Benefits are increasingly decisive when choosing an employer

Although pay remains the top priority, the survey showed that benefits are becoming more important. Two-fifths (42%) of Swiss employees have chosen their current employer because of their benefits offer and around half (46%) say they would stay with their employer for the same reason. Two-fifths (38%) would leave their employer without a salary adjustment associated with the change in order to receive better benefits elsewhere.

"In the competition for talent, it's no longer just about pay - benefits are important for employees. Appreciation increases when they can choose the benefits that best suit their individual needs," says Reto Ebnöther, Head of Health and Benefits at WTW Switzerland. "It is obvious that employers are expanding their benefits offerings and broadening the range of choices. This not only helps to improve the loyalty, commitment and productivity of their workforce, but can also have a positive impact on the corporate culture and the trust placed in employees."

Pension fund an important decision criterion

Pension benefits are one of the key benefits that companies use to attract and retain employees. For example, 39% of survey participants said that the benefits insured in the pension fund were an important reason for choosing their current employer. By comparison, this figure was only 23% in 2019. Almost half also state that the pension fund is a decisive factor in why they remain with their current employer.

Companies are also becoming increasingly aware of the importance of occupational benefits: "In recent years, the demand for data- and fact-based benchmark analyses from pension funds has more than tripled," says Stephan Wildner, Head of WTW Switzerland and Director of Retirement Services Switzerland. "Only those who know about the strengths of their occupational pension scheme can communicate these to employees in a targeted manner and use them in recruiting."

The current survey also makes it clear that occupational pensions are the most important instrument for employees to secure their retirement. 62% of those surveyed stated that they primarily save for their old age via their pension fund. For 55%, the pension fund is more important than ever. Even though almost three quarters of all respondents state that they would have liked to save more for retirement in the past year, 76% of older people (aged 50 and over) are confident that they will be able to lead a comfortable life in the first 15 years after retirement. Almost two thirds of all participants believe they are on the right track when it comes to saving for retirement, with men being slightly more confident at 66% than women at 57%.

Focus on financial security

At the same time, it is apparent that those people who say they are on the wrong track are toying with the idea of continuing to work beyond the normal retirement age. More than a third of this group do not expect to be able to retire before the age of 70. They hope to be able to defer their retirement pension and possibly increase it at the same time. The prerequisite for such continued employment, however, is that the employer offers a hand and continues to employ the employee beyond retirement age.  

It is interesting to see what needs the insured persons have in relation to their pension fund. When asked what their main concern was in the area of occupational pension provision, the respondents selected the following three answers most frequently: 1. protection of savings against losses in value, 2. security that the savings will be sufficient in retirement and 3. how the money is invested.

Financial security therefore comes first. However, there also seems to be a great deal of interest in how people's pension assets are invested. Especially in times when environmental protection plays a key role, the call for sustainable investments is becoming ever louder. Accordingly, many pension funds are already offering more environmentally friendly strategies that are managed and evaluated according to ESG criteria (environment, social, governance). Confidence in such investments is high. Only 17% of the participants believe that these investments perform worse than those that do not follow ESG guidelines. The next few years will show whether their expectations are correct.

Source: www.wtwco.com