Competitive, flexible and viable: What SMEs really need from their pension solution

Column by Alain Grand

For SMEs, occupational pension provision is more than a statutory obligation. It influences their attractiveness as an employer, protects employees and, at the same time, must be manageable within HR administration and payroll without requiring disproportionate effort. The key question, therefore, is not which pension solution offers the widest possible range of benefits, but whether it fits the profile of the workforce, the business model and the company’s resources.

In the picture: Alain Grand, Specialist manager in Pension solutions at Tellco

Competitiveness starts with your own labour market

A competitive pension solution does not need to be above average in every respect. It should create added value where it matters to the company and its employees. A business with a large number of part-time employees has different needs from a company with full-time employees or several management levels. Employing temporary staff also brings specific requirements: fluctuating working hours, short assignments and frequent changes must be insured correctly and processed efficiently.

For SMEs, it is therefore worth comparing more than just contribution rates. Equally important are the insured salary, the coordination deduction, risk cover in the event of death or disability, and the benefits available to different employee groups. However, a pension solution only becomes truly attractive when employees recognise its value. Clear information and simple digital access to their personal pension situation are therefore essential.

A common structure with targeted flexibility

A collective foundation can efficiently relieve SMEs of tasks that would require considerable effort to manage on their own. It provides the necessary infrastructure and brings together administration, asset management, risk management and governance.

Pension plans can be tailored to the company’s needs in terms of insured salary, savings contributions, financing, and benefits in the event of death or disability. Changes in employment levels, salary adjustments during the year and highly fluctuating incomes can also be taken into account within the pension plan. Depending on the pension solution selected, different investment strategies may also be available. For SMEs, what matters is not having the widest possible choice, but being able to adapt those elements that are relevant to their workforce and business model.

The benefits of a flexible pension solution are particularly evident for staffing companies or businesses with highly variable employment levels. Calculations based on hourly wages, clear processes and the routine handling of frequent employee entries and departures can reduce the administrative workload. In this context, flexibility also means that changing assignments and fluctuating wages can be processed using clear, repeatable procedures.

Quality becomes apparent in day-to-day operations

Whether a pension solution is viable is determined in everyday operations. Employee entries and departures, salary changes and absences should be capable of being processed digitally and with as few manual steps as possible. More complex cases also require accessible specialists who can clarify the situation quickly and provide reliable support.

Before making a decision, SMEs should consider three questions together: Does the pension solution offer employees recognisable added value and support the SME’s positioning as an employer? Can the pension solution accommodate changes in headcount, employment levels and salaries? And can the processes be managed reliably with the resources available?

The best pension solution is rarely the one with the widest range of benefits or the lowest price. The best pension solution creates clear value for employees, gives the company flexibility where it is needed and reduces complexity in day-to-day operations. A professionally managed collective foundation provides the basis for this by combining efficient infrastructure with the flexibility required by different SMEs.