Webinar: The role of defined benefit pension plans in contemporary recruitment and retention strategies
In a tight labour market, employees have options. And while recruitment and retention strategies tend to focus on propositions that impart present day payoffs, workplace pensions are fast becoming a key employment draw.
“Workplace pension plans, especially defined benefit (DB) plans, produce undeniable value in recruiting and retaining talent, reducing stress, and increasing employee productivity in the workplace,” says Derek Dobson, CEO and plan manager at the CAAT Pension Plan.
A majority (84 per cent) of employers offering DB plans say the pensions play an important role in their recruitment efforts, and that 71 per cent of Canadians say they are willing to forgo a higher salary in favour of a better pension plan, according to data released by Healthcare of Ontario Pension Plan (HOOPP).
As employers continue to pivot to meet evolving employee needs and expectations, organizations that support their workforce by helping them achieve post-career goals are standing out and making the right impression on current and prospect talent pools.
In an upcoming fireside chat, Dobson and Dr. Susan Black, president and CEO of the Conference Board of Canada, will highlight insightful data on HR trends — such as employee wellness and total rewards — and the challenges within today’s talent acquisition and retention matrix. They will also share a winning formula for employers that focuses on a long-term strategy for overcoming the race for talent — or “Marathon for Talent.”
Titled “The Marathon for Talent: How to attract and retain talent through a long-term lens,” the event will include actionable acquisition and retention strategies, examples of company success stories, and insights into workplace retirement solutions, including the role modern DB pension plans can play in meeting employer and employee goals.
Defined benefit pensions today can come at a fixed DC-like cost with less risk, since contributions across participating employers are pooled, along with the longevity and investment risks, and managed by investment and pension experts.
“DB pensions are an incredibly efficient way for Canadians to save while they work,” says Dobson. “They can yield three times the retirement benefits per dollar saved than the average individual method of saving through RRSPs, without the employee needing to make sophisticated investment decisions over years, even decades.”
The looming retirement income security crisis in Canada can only intensify as demographics continue to shift. Baby boomers are retiring and Canadians are living longer. With this comes widespread concern among experts about whether Canadians are adequately prepared for retirement, and associated concerns about the impact aging Canadians without sufficient retirement savings will have on the health care system, social security programs such as OAS and CPP, and the overall health and well-being of Canadian families.
Up until the late 1970s, defined benefit plans were one of the most common types of workplace retirement plans Canadian employees could rely on. This means that the average baby boomer has witnessed a drastic decline in defined benefit pensions over the span of their career when, ideally, they should be seeing increased support.
“As the fastest growing DB plan that is open to private, non-profit, and the broader public sectors in Canada, our purpose is to improve retirement income security for Canadians,” says Dobson, who notes pensions also promote social equity by helping workers achieve retirement income security regardless of gender, education, or profession.
More than three-quarters (77 per cent) of Canadians say that employers have a responsibility to offer a pension plan so that employees can have adequate retirement income, according to data from the Healthcare of Ontario Pension Plan. Eighty per cent believe that without good pensions at work, Canadian seniors will experience poverty.
Learn how you can stand out among your competitors with DB plans that demonstrate a commitment to your employees’ long-term professional and financial growth. Register for the The Marathon for Talent: How to attract and retain talent through a long-term lens webinar now, and start planning for the future.
