Three in five professionals — 60% — would prioritise pension contributions over salary increases, a survey reported by People Management magazine has found. That single statistic signals a meaningful shift in what employees want from their reward packages: long-term security outranking immediate cash.

For HR teams, the finding touches one of the most consequential people-process decisions of the annual cycle: how to structure pay reviews. If a majority of employees value employer pension contributions above gross salary growth, then total-reward statements, benefits communication and salary-benchmarking strategy may all need recalibration.

What does the survey change for employers?

The data point reframes the standard assumption that cash in hand wins every reward conversation. When 60% of professionals say they would favour pension contributions over a pay rise, employers gain flexibility in designing compensation packages that may also carry tax and retention advantages.

The practical questions for HR leaders are straightforward:

• Do current flexible-benefits platforms let employees redirect part of a salary increase into pension contributions?
• Are line managers equipped to present total reward, including employer pension spend, rather than base pay alone?
• Does the organisation's benefits communication explain the long-term value of contributions clearly enough to support that trade-off?

A signal for retention strategy

Reward preferences matter most where retention is tight. An employee who values pension contributions over immediate salary growth is an employee a competitor cannot easily poach with a modest cash offer alone — provided the current employer communicates the value of its pension commitment.

That places responsibility on people teams to make pension value visible. Annual total-reward statements, pension projection tools and manager briefings all become part of the retention toolkit when employees weigh retirement savings this heavily.

What should HR watch next?

The survey's 60% figure offers a benchmark, but preferences can differ by workforce segment, age band and market. As cost-of-living pressures and retirement insecurity continue to shape employee expectations, HR teams that test these preferences in their own engagement surveys will be better placed to design reward packages employees actually value.