The role of pension schemes in recruitment and motivation

Abstract

A postal survey of companies registered in Scotland considered various occupational pension issues. A major finding was the strong managerial belief (but absence of hard evidence) that pension schemes had positive recruitment and motivational effects. Ad hoc‐ery ‐ in the sense of expediency ‐ might help to explain this lack of evidence. Nevertheless, schemes could fulfil certain covert objectives, indicative of a more purposive management. The relationships between pension schemes and human resource management (HRM) are shown to be complex. Aggregate pension provisions seems to run counter to the individualistic thrust of HRM. However, early retirements and shifts into money purchase schemes for some employees might reflect a distinction between “core” and “periphery” employees, as well as “hard” and “soft” HRM approaches.

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