More than four out of 10 corporate advisers are not delivering good value for money to their employer clients, according to detailed benchmarking data published for Corporate Adviser and Employee Benefits magazine.
The Pension Adviser Research, which contains detailed benchmarking data on the performance of individual corporate advisory firms, found 37 per cent of employer clients only described the value of the service they receive as ‘reasonable’, with 5 per cent saying their adviser offerer poor value for money.
But the data shows 88 per cent of advisers had either an excellent or good standard of client service, with 19 per cent described as ‘reasonable’.
The research, which sought the views of their benefits advisers of 439 employers, found pensions strategy to be the area where most employers expect help to be needed once auto-enrolment is dealt with, cited by 68 per cent, followed by pension communication, market reviews and terms negotiation and advice on defaults, scoring 57 per cent, 52 per cent and 43 per cent respectively. Advising on additional/alternative workplace savings options was presented as a potential area of future advice by 38 per cent, with investment guidance cited by 36 per cent.
The research found 26 per cent of employers polled used an adviser to provide an annuity broking service, with 56 per cent using their primary adviser. It also found 32 per cent employ an adviser to advise their employees.
Employee Benefits and The Platforum head of employer research Tina Harris says: “With so much recent change in legislation and regulation, it is now more important than ever that employers value their relationship with their pensions adviser. We wanted to get to the heart of what organisations are really looking for in an adviser. We had a fantastic response to the survey from over 400 employers who gave new insight into how they rate their current adviser’s aspects of the service they most value, how they select an adviser and monitor performance and how things are changing moving forward.
“It is particularly interesting to see what employers think of their current adviser in terms of value for money and whether or not they would recommend them. Relationship features very highly in employers priorities when selecting an adviser and these measures give an excellent indication of the strength of these relationships and potential impact on client retention and future business.”