Recently I posted an article explaining more about the new regulatory framework in Malta for Employers to promote introducing Employer Related Pension Schemes.
Last week I had the opportunity to meet up with a number of HR directors and CFO’s of companies in various industries to explain more about the benefits for both employer as well as for employees. Moreover, during these meetings, we were in a position to share more of our experience and knowledge gained from setting up these type of Schemes for employers throughout the EU.
To be quite honest, I was pleasantly surprised by the interest showed and the positive feedback we got during these meetings. From what we learned, most companies are considering to introduce such a Scheme because they care about their staff and truly feel a sincere (social) responsibility to accommodate retirement savings. From a more economical point of view they want to improve retention and reduce their costs for staff turnover.
With respect to the latter, a recent report showed companies in Malta are suffering from a staff turnover rate up to nearly 40%. Whilst knowing that, due to a PwC report issued in 2016, the costs for replacing someone who left service is 150% of a person’s annual income, it’s obvious that huge savings can be accomplished.
All of our meetings were of an interactive nature and due this, the persons we spoke to, showed a lot of engagement which already lead to discussing possibilities of structuring such a Scheme.
The next step in the process of informing and sharing knowledge, will be scheduling a follow up meeting for us to give a detailed insight in the process of incorporating such a Scheme. Although we take care of the full process it’s important that the Company fully understand and support this process. By doing so we truly believe that introducing an Employer Related Pension Scheme can be a highly valued benefit.
We will keep you updated about our proceedings.