ZURICH, July 8, 2024 – Amidst a cost-of-living crisis and geopolitical challenges, Swiss employees are turning to their employers for a sense of security. A survey by the leading global advisory company WTW found that half (50%) of employees are currently choosing to stay with their employers. On the other hand, just as many are open to offers, with 16% actively looking for change. It is therefore all the more important for companies to take measures to improve their attractiveness as an employer.
Pay continues to be a main driver for both attraction and retention. In this year's survey, employees cited pay (34%), job security (34%) and working environment (33%) as the top reasons for remaining with their employer.
While pay remains at the forefront, the survey found benefits are becoming increasingly important. Two-fifths (42%) of Swiss employees chose their current employers due to their benefits package and almost half (46%) reported staying with their employers for the same reason. Two-fifths (38%) said they would leave their employer for better benefits elsewhere and no change in salary.
“The war for talent is no longer just about pay – benefits matter to employees, with higher levels of appreciation seen when they have the ability to choose those benefits that best meet their individual needs,” says Reto Ebnöther, Head of Health and Benefits at WTW Switzerland. “It is clear that employers are enhancing their benefit offerings, with choice becoming more widespread. This not only helps to improve retention, engagement and the productivity of their workforce, but for employees it can have a positive impact on culture and the trust placed in their employer.”
Pension benefits are a decisive factor for employers trying to attract and retain employees. 39% of respondents said that the benefits insured with in the pension fund were an important reason why they chose their current employer. By comparison, this figure was only 23% in 2019. Almost half say that the pension benefits are a key reason why they remain with their current employer.
Companies are also increasingly coming to appreciate the importance of occupational pensions: “In the past few years, demand for data-driven and fact-based benchmark analyses of pension funds has more than tripled,” says Stephan Wildner, Head of WTW Switzerland and Director of Retirement Services Switzerland. “Only companies who are aware of the strengths of their occupational pension system can direct targeted communication to their employees and during the recruitment process.”
The current survey also shows that pension benefits are the most important saving instrument for retirement. 62% of respondents state that their pension fund is their primary way of saving for old age. For 55%, it is more important than ever before. Even though just under three-quarters of all respondents stated that they would have liked to save more for their pension in the past year, 76% of older people (aged 50 and more) are confident that they will be able to live a comfortable life in the first 15 years of retirement. Around two-thirds of all participants believe that they are on the right track when it comes to saving for old age, with men being slightly more confident at 66% than women at 57%.
However, it is also evident that people who believe they are on the wrong track are thinking about continuing to work beyond the normal retirement age. Over a third of this group do not expect to be able to retire before the age of 70. They hope to be able to postpone taking their retirement pension and possibly increase it at the same time. However, the prerequisite for such continued employment is that the employer offers its support and continues to employ the employee beyond retirement age.
It is interesting to observe the needs of insured individuals with regard to their pension benefits. When asked what they considered to be the most important issues relating to occupational pensions, those surveyed chose the following three most frequently: 1. Protecting savings against loss of value, 2. Ensuring savings are sufficient in retirement, and 3. How the money is invested.
Financial security is therefore a top priority. 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. Many pension funds already offer more environmentally friendly strategies that are managed and evaluated according to ESG (Environment, Social and Governance) criteria. Confidence in such investments is high. Only 17% of participants believe that these strategies perform worse than those that do not follow ESG guidelines. Whether their expectations are justified will become clear over the next few years.
The 2024 Global Benefits Attitudes Survey was conducted by WTW from January to March 2024. Respondents include 1,000 Swiss employees working at medium and large private sector employers, representing a broad range of industries.
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk, and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce, and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success — and provide perspective that moves you.
In Switzerland, WTW has branches in Zurich, Geneva, and Lausanne.
