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Pension Benefits Are Critical Factor for Workers – Regardless of Age – in Deciding Whether to Accept a Job: Accenture Survey

Public- and private-sector workers in North America demanding greater access to retirement-planning tools through digital channels.

REUTERS

Pension benefits are a major factor for most workers in North America when deciding whether to accept a job, according to results of an Accenture survey. The research found that millennial workers are the most interested in pension benefits and also identified a strong but underserved demand for retirement coaching and planning tools through digital channels.


Nearly four in five (78 percent) of the 2,750 U.S. and Canadian workers and retirees with pension plans surveyed said that the availability of pension benefits was a critical factor in deciding whether or not to accept a job. Further, pensions remained a critical loyalty factor even after employees were hired, with nearly three-quarters (73 percent) of respondents saying they stayed with an employer due to pension benefits.

The survey found that pension benefits are relatively more important to younger workers than older workers, with 82 percent of millennials (ages 20-37) and 81 percent of Gen Xers (ages 38-52) citing the benefits as a critical factor in accepting a job, compared with 74 percent of baby boomers (ages 53-71).

Pension benefits also appear to be more important to public-sector employees, with those workers more likely than ones in the private sector to say they stayed with an employer due to pension benefits (77 percent versus 62 percent) and that pension benefits were a critical factor in accepting a job (80 percent versus 74 percent).

"The pension benefit may now be nearly as important to employees as their healthcare," said Owen Davies, who leads Accenture's global pension practice. "While health benefits have been the benefit most valued by job seekers and employees in recent years, pensions appear to be closing the gap."

Employees Want More Retirement-Planning Help
The survey, which focused on retirement planning, found that most current and retired employees said they want more help with retirement planning (cited by 82 percent of all respondents) and retirement coaching (84 percent). Younger workers are the most interested, with nearly nine in 10 millennials citing an interest in retirement planning (88 percent) and retirement coaching (86 percent).

Half (49 percent) of currently active employees said their employer offers retirement education or coaching, and one-third (32 percent) said their employer does not, with the remainder (approximately 20 percent) uncertain if their employer offers such services. But overall, most current and retired workers — 77 percent — said they wanted more knowledge and understanding of their retirement options.

The survey also found that workers' confidence in their retirement savings declines with age. Seventy percent of millennials said they were confident or extremely confident that they would have enough savings to retire at age 65, compared with 62 percent of Gen Xers and 57 percent of baby boomers.

Underserved Demand for Digital Channels
The survey found a strong but generally underserved interest in the use of digital communication channels for retirement information. For instance, more than half (54 percent) of respondents said they would like to attend a webinar for retirement education, but only 14 percent have done so. Similarly, half (50 percent) of respondents said they're interested in using a mobile app to receive retirement info, while only 17 percent have been able to do so, and almost half (46 percent) said they would like to use a digital retirement coach, with only 11 percent served in this way. Interest in digital channels for retirement information is especially strong among millennial workers (see chart).

Implications for Employees and Employers
As a result of the findings, Accenture makes several recommendations for employers:

  • Acknowledge the importance of pension and retirement benefits – Employers should ensure that their HR strategies acknowledge that pension and retirement considerations are critically important to job seekers and current employees and ensure that they address employees' strong appetites for retirement information and support.
  • Build awareness of benefits – One in five respondents (20 percent) didn't even know if their employer offered retirement planning or coaching. Given rising concerns among older workers regarding the security of their retirement, it's important that employers strive harder to provide their employees — and retirees — with the information necessary to help them manage their retirement.
  • Leverage digital channels – Although few workers currently use digital communication channels for information and support on pension benefits and retirement planning, these channels apparently provide a lot of appeal, especially among younger workers. Therefore, employers should bolster their digital offerings to meet the demand from potential recruits and current workers.

"We see growing opportunities for employers to address unmet demands for digital channels and strong appetites among employees for more information and support regarding pensions and retirement planning," Davies said. "How pension benefits are shaped and how they are communicated to employees is very important to an organization's effectiveness, stability and outlook. Our survey findings point to several areas that employers should focus on to attract and retain their employees."

About the Research
Accenture surveyed 2,750 U.S. and Canadian workers and retirees with pension plans (2,600 in the U.S. and 150 in Canada), of whom 1,790 were current workers and 960 were retirees. Three-quarters (2,050) of the respondents were from the public sector and one-quarter (700) were from the private sector. The online survey was conducted in November 2017.

Accenture Research Shows CFOs Play a Growing Role in Digital Transformations at Financial Services Companies

"Financial services CFOs are increasingly performing a difficult balancing act between managing risk and unlocking value."

REUTERS

Originally Published by Accenture.

Chief financial officers (CFOs) at banks and insurance companies are playing a growing role in digital transformation by leveraging new data and analytic technologies and by assuming greater influence in decisions about technology investments, according to new research from Accenture (NYSE: ACN).

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High-Growth Companies Buck Trend of Declining Returns on Innovation, Accenture Report Finds

Only 14 percent of companies are successfully using innovation to unlock value.

REUTERS

Originally Published by Accenture.

Only one in seven companies is able to tap into the full potential of technology-enabled innovations, with most others missing out on an opportunity for both strong growth in profits and market capitalization, according to a new research report from Accenture. At the same time, the report identifies several practices of high-growth companies that have enabled them to derive significant value from innovations where others have failed.

The report, "How to Unlock the Value of Your Innovation Investments," surveyed C-level executives at 840 large companies across 14 industries and eight countries. The research found that approximately one in seven (14 percent) of the organizations surveyed are generating significant value from their innovation investments — and identified the innovation approach of these high-growth companies and what other companies can learn from them.

The research found that companies' return on innovation investments declined 27 percent over the past five years and notes that the gap between what technology makes possible and the ability of companies to realize that value is only going to grow. This creates a steady supply of "trapped value" — i.e., the value that businesses could be releasing or sharing if they could change faster and more fundamentally in ways that would enable them to capitalize on technology-enabled innovations.

The good news is that the declining costs of advanced technology are presenting new opportunities for companies that have been increasing their innovation investments. Incumbents and start-ups spent a combined US$3.2 trillion on innovation-related activities over the past five years, and this trend is expected to continue — almost one-third (29 percent) of those Accenture surveyed expect to increase their investments in innovation by more than 50 percent over the next five years.

Challenges to Innovation Investment Strategy
Of the 56 percent of respondents who reported increasing their innovation investments by at least 25 percent in the past five years, more than half (57 percent) underperformed their industry peers in growing profits or market capitalization. Accenture analysis shows that much of this is due to spending predominantly on incremental innovation, which is how nearly two-thirds of non-high-growth companies directed their spend, rather than on disruptive innovation.

"Spending on incremental innovation is not enough to seize opportunities enabled by scaling advanced technologies," said Omar Abbosh, group chief executive of Accenture's Communications, Media & Technology operating group. "To unlock trapped value through new market opportunities and improved operational performance, companies must dare to focus on truly disruptive, step-change innovation, applying it persistently and intensely across their entire business."

Unlocking Trapped Value
Lessons from high-growth companies show a distinct approach to innovation that helps them turn innovation investment into real value. C-suite executives at high-growth companies advocate an innovation approach that is:

  • Change-Oriented: Having the courage to apply innovation with greater intensity to reinvent existing ways of working, and thus achieve deep organizational change.
  • Outcome-Led: Fostering innovation efforts across the business and having the discipline to tie them rigorously to financial performance.
  • Disruption-Minded: Committing to invest more aggressively, over time, in truly disruptive innovation initiatives that have the potential to create entirely new markets.
Additionally, the research identified several key characteristics that further differentiate high-growth companies from other companies. These include being:
  • Hyper-Relevant: Sixty-five percent of high-growth companies (vs. 54 percent of others) collaborate with customers during the innovation process.
  • Talent-Rich: Sixty percent of high-growth companies (vs. 48 percent of others) develop a "liquid" workforce — one that is flexible, supported by technology and adaptive.
  • Network-Powered: Sixty-one percent of high-growth companies (vs. 51 percent of others) use digital technologies to provide products-as-a-service.
"Putting innovation to work in areas such as talent management and building greater inclusiveness, in addition to mastering leading-edge technologies, has been a key to the success of high-growth companies," said Dr. Vedrana Savic, managing director of Thought Leadership at Accenture Research. "True leaders are those companies that use innovation to reinvent, rather than just improve, existing ways of doing business."

To learn more about the report, which is part of Accenture's "Into the New" research, please visit: https://www.accenture.com/us-en/insights/consulting/Innovation-investment-value or join the conversation at #InnovateNow.

Police Professionals Welcome New Technologies but Require Training and Enhanced Workforce Planning, Accenture Survey Finds

The specific technologies that respondents expect to see their organizations use more over the next three to five years include body-worn cameras (48 percent), biometrics (37 percent), video analytics (42 percent) and predictive policing technologies (26 percent).

REUTERS

Originally Published by Accenture.

Three-fourths (76 percent) of policing personnel expect that they will need new digital skills to be effective in their roles over the next three to five years, and half (50 percent) are willing to learn new digital skills if they receive the necessary training from their employer, according to findings of a six-country survey released by Accenture at the annual conference of the International Association of Chiefs of Police (IACP).

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Low Consumer "Literacy" of Healthcare System Estimated to Cost $4.8B Annually, Accenture Report Finds

One in two consumers not proficient at navigating complexity of healthcare system.

REUTERS

Originally Published by Accenture.

A new report by Accenture has found that half of U.S. consumers are unable to navigate the complexity of the healthcare system on their own and that this low level of health system "literacy" costs the industry an estimated $4.8 billion annually in administrative expenses alone.

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Accenture Completes Acquisition of Pillar Technology to Expand Industry X.0 Capabilities

Accenture Industry X.0 helps companies address the shift to digital products and services, transform their engineering, manufacturing and field operations, and digitize their enterprises.

REUTERS

Originally Published by Accenture.

Accenture has completed the acquisition of smart embedded software company Pillar Technology, significantly expanding its Industry X.0 practice in North America.

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Accenture Named a Leader in the IDC MarketScape: Worldwide Life Sciences Research & Development Vendor Assessment

In the report analysis, IDC Health Insights divided potential key measures for success into two primary categories: capabilities and strategies.

REUTERS

Originally Published by Accenture.

Accenture is positioned for a third consecutive time as a Leader in the IDC MarketScape vendor assessment, covering strategic consulting across the life sciences research and development (R&D) industry.

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Accenture Positioned as Overall Innovation Leader in HFS Software Product Engineering Blueprint Report

"Accenture has been recognized as a top innovator that leverages its deep understanding of software product engineering to drive excellence in its clients' journeys in the Platform Economy. Having made significant investments in futuristic technologies, Accenture is well-poised to lead and drive meaningful business outcomes for its customers."

REUTERS

Originally Published by Accenture.

Accenture (NYSE: ACN) has been named to the Winner's Circle and positioned as the overall leader in innovation, ahead of 24 other competitors, in HFS Research's 2018 Software Product Engineering Services Blueprint Report.

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Accenture Expands Industry X.0 Capabilities with Two Acquisitions in North America

Accenture buys hardware engineering firm Mindtribe and announces intent to acquire embedded software company Pillar Technology; boosts ability to help companies innovate smart, connected software and hardware products.

REUTERS

Originally Published by Accenture.

Accenture has made two major moves to expand its Industry X.0 practice. The company acquired hardware engineering firm Mindtribe and entered into an agreement to buy smart embedded software company Pillar Technology. The two acquisitions will significantly boost Accenture's ability to help companies redefine smart connected software and physical products as the lines blur between the physical and digital world.

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