Competitive compensation includes more than salary and health benefits, even for younger workers
Toronto, July 6, 2016 - As the federal and provincial/territorial governments begin planning for the roll-out of an enhanced Canada Pension Plan, the latest ADP Canada Sentiment Survey reveals that retirement benefits such as pensions or a group Registered Retirement Savings Plan (RRSP) can be a deciding factor in a job change. According to the survey, over three quarters of Canadian workers (77 per cent) say they would consider jumping ship if, all other things being equal, another employer offered retirement support.
“These numbers are an indication that employers should pay close attention to what’s important to their employees, and to what is being offered by their competitors,” said Sooky Lee, Division Vice President and General Manager, HR Business Process Outsourcing at ADP Canada. “Most companies track salaries to make sure they are competitive, but many forget about other compensation factors, such as retirement programs. Workers, on the other hand, take a holistic view of what’s being offered and, as the survey shows, will make a switch if they see more value in the long term.”
Highlights of the ADP Canada Sentiment Survey:
Retirement Savings Support a Big Draw for Employees
- Employees in B.C. are the most likely to consider leaving their job with 88 per cent saying they would consider making a change if retirement saving support or pensions were offered elsewhere.
- While the majority (70 per cent) of employees of small businesses (2 – 50 employees) say they’d consider leaving their current job if they were offered retirement support elsewhere for a similar position, they are less likely to do so than those at companies with 51-500 employees (86 per cent) and at large companies with 501+ employees (74 per cent).
- Those who reside in Quebec are also less likely to say they’d consider leaving their current job if they were offered retirement benefits elsewhere (69 per cent) versus the national average (77 per cent).
- There was no significant difference in willingness among different age groups, with almost 78 per cent of Millennial workers saying retirement benefits would prompt a job change
No Need for Panic
“We were surprised to see the difference in willingness to change jobs among employees in mid-sized companies, versus smaller organizations“ Lee notes. “This could be that employees in larger organizations expect their employers to have more robust programs around retirement.”
Although the data shows that retirement support is a competitive factor, employers should note that compensation takes many forms, and is just one factor in employee retention. “In a competitive labour market, retaining top talent becomes more difficult, and organizations should combine a competitive financial package with other perks such as flexible hours, employee discount programs, employee and family assistance programs and, of course, a really terrific culture.” Lee explains.
Employers should also not make assumptions about younger workers’ interest in planning for retirement. “Workers in the 18 to 34 age group are just as interested as their older colleagues in having retirement support,” Lee adds.
“What’s critical is that HR departments consistently and regularly evaluate their organization’s competitive position, and adapt it to meet the changing needs of their workforce,” said Lee. “Notwithstanding the upcoming changes to the CPP, for those mid-sized companies who need to hang on to top talent, some retirement support, along with non-financial incentives, may be the place to start.”
Beyond the Money:
- Working Remotely: Some employees may appreciate the flexibility of working from home regularly or on a casual basis.
- Flex-time: Flexible hours can allow workers to manage busy home and work commitments, which can decrease their likelihood to jump ship.
- Compressed work weeks: Some companies offer employees the option of working a little longer for four days so they can take a fifth day or half-day off. Consider special summer hours that let employees slip out a little early on Fridays.
- Extra time off: Offering someone extra time away from the office to unwind is a nice way to say thank you for long hours or show appreciation for good work.
- Casual day or casual workplace: Dressing down to support a charity or as part of your corporate culture can boost employee satisfaction.
- Gift of giving back: Give employees time to volunteer in their communities or provide donation-matching programs.
A competitive compensation package is a core element of strategic planning for talent acquisition and retention. ADP Canada is able to offer a full suite of services that help companies strategically attract and keep top employees.
The New Standard in People Management
ADP Canada recently introduced ADP Workforce Now® Comprehensive Services, the first HR shared service of its kind in Canada. By combining HR expertise and proven technology, the service supports rapidly growing organizations with world-class HR capabilities, without the overhead. Key benefits include:
- Streamlined HR administration, backed by integrated technology that is proven to save thousands of hours of administrative time*
- On-demand access to experts in wellness, compliance, payroll, recruiting and other key disciplines
- A designated relationship manager
- Best-in-class recruiting, talent management, employee assistance programs and other key engagement tools that can reduce turnover by up to 20 per cent over three years*.
A survey of 862 employed Canadians was completed online between March 14th and March 17th 2016 using Leger’s online panel, LegerWeb. A probability sample of the same size would yield a margin of error of +/-3.3%, 19 times out of 20.
About ADP Canada
ADP Canada gives organizations of every size the tools to help their people thrive. From basic payroll to complex people management systems and analytics, we help business leaders make better decisions. Our clients trust ADP to provide strategic insights and on-demand expertise to build and inspire the workforce they need. Visit us at adp.ca or follow us on Twitter @ADP_CDA.
Powerful technology plus a human touch. Companies of all types and sizes around the world rely on ADP's cloud software and expert insights to help unlock the potential of their people. HR. Talent. Benefits. Payroll. Compliance. Working together to build a better workforce. For more information, visit ADP.com.
*Source: Read a commissioned study by Forrester Consulting, The Total Economic Impact of ADP Workforce Now Comprehensive Services.