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The roll out of workplace pension autoenrollment has given companies in the UK an invaluable, but expensive tool to help provide for their employee’s futures. For most businesses, the workplace pension can be the most expensive employee benefit they offer, however it can seem like just a legal requirement, a payroll task, a tick in the compliance box. Every month, money leaves the company account, and that’s where the thought can end.
Having been a business owner pre-Compound, and having spoken to hundreds since, I completely get it. It’s easy for pensions to fly under the radar when you’re focused on cash flow, clients, and growth. But what if that inevitable cost could deliver a measurable benefit?
If done right, your workplace pension isn’t just a regulatory line item - it’s one of the most powerful tools you have for attracting, retaining, and engaging great people. And let’s be honest: when else do you spend 5% of your total wage bill on something you don’t see a return on?
So how exactly can a workplace pension be used as a tool
We think about it this way: a workplace pension is one of the only benefits that grows quietly in the background, long after a pay rise has been celebrated or a bonus has been spent. But because it’s often invisible day-to-day, lots of employees don’t connect it your company, or see it as benefit you are providing them.
If they did, this visible proof that you’re investing in their future would go a long way in building loyalty. It’s a bit like buying someone a season ticket, you’re not giving them something for today, you’re investing in all the moments still to come.
That’s where communication and engagement matter. When employees can see their pension, understand what’s in it, and track their progress, it can transform their perception. It becomes proof that their employer is investing in their future, not just their current output.
Throughout my pre-Compound career, I never had that feeling. I wasn’t engaged, I didn’t see what my employers were contributing, and I didn’t feel the value. That gap in experience is exactly why Compound exists today.
Why this shift matters.
People who feel valued stay longer. They work harder. They speak better about where they work. In fact studies show that companies with highly engaged teams are 23% more profitable and 18% more productive than those with disengaged staff (https://www.wellable.co/blog/employee-engagement-statistics-you-should-know/). When you consider that a reported 37% of employees leave their jobs due to poor engagement or culture (https://www.paycor.com/resource-center/articles/employee-retention-statistics/) it only stresses this very issue.
Now, think about the cost of replacing just one team member, reports vary in their estimations of this, from £3000 - £30,000 depending on where you look. It’s not just the cost of recruitment agencies you need to think about, it’s the opportunity cost of your team dedicating their efforts to finding, interviewing and onboarding new talent. Retain even a handful of people, and suddenly the ROI starts to become very real.
Keep it simple
The irony is that while lots of companies find pensions complex, their teams find them confusing for the exact same reason. Outdated systems, confusing logins, poor visibility. It doesn’t have to be that way. With the right set up, a workplace pension can be simple and clear. When everything works smoothly, it stops being admin, and starts being a genuine benefit. That’s the sweet spot: easy for you, meaningful for them.
At Compound, our goal is to turn one of a company’s biggest compliance tasks into one of its most powerful benefits, by making it effortless for you and engaging for your employees. Because when everyone can see the value in the workplace pension, it stops being a cost, and starts being an investment in your business, your culture and your people.
If you would like to see how we are doing this, you can join the waitlist via the link below.
Risk warning: Capital at risk. The value of investments can go down as well as up. You may get back less than you invest. This article is for information only and does not constitute financial advice. Compound is an execution-only service and an appointed representative of RiskSave Technologies Ltd, which is authorised and regulated by the Financial Conduct Authority.
