IGG reveals what employers look for in a pensions manager

IGG has revealed the skills and experience that employers seek to recruit pensions managers. Its findings demonstrate the challenges for employers in finding an individual that meets all the criteria that are currently in demand.

The study explores the skillsets required for pensions managerial roles advertised with employers across the private, public and third sectors. The hiring firms range from county councils, government bodies and public service providers to listed companies and private enterprises operating both domestically and internationally.

IGG’s findings capture the breadth of skills required by those hiring for the role of pensions manager.

Across 40 advertised roles, more than 158 unique skill requirements were listed by recruiting firms using LinkedIn’s skills classification. IGG’s analysis shows how those requirements break down into nine key areas to make up the ideal in-house hire.

Beyond pensions, workplace benefits and human resources expertise, communications and interpersonal skills are most widely sought after (22%), ahead of financial expertise (12%), technical proficiency (9%) and legal and compliance skills (9%).

Graph 1: DNA of the optimum pensions managerial hire

Sustainability and cyber security in danger of being overlooked

While many of the most common and in-demand skills will be familiar to candidates and hiring managers across the industry, IGG’s findings uncovered a number of surprising blind spots in the positioning of job opportunities.

For example, across all 40 roles included in its study, not one vacancy referenced ESG or sustainability as a priority or consideration for candidates. Only one advertised role, for an employer in the energy sector, included any mention of sustainable business practices.

This comes at a time when sustainability is high on the agenda of regulators. TPR recently issued the first climate change reporting fine for a scheme which failed to publish a report on management and governance of climate-related risks and opportunities, owing to an administrative error.

Only two roles mentioned cyber security while three mentioned data protection. This comes despite high profile warnings from The Pensions Regulator (TPR) that schemes must have robust cyber security and business continuity policies in place.

While fostering inclusivity was among the most common skill requirements listed, only one advertisement – from a public service provider – mentioned the employer’s own commitment to equality, diversity and inclusion in the workplace.

The ten most common skill requirements for pensions managerial or scheme secretariat hires are shown below, alongside the more unique and specialist needs of certain roles.

Table 1: Most in-demand and specialist skills

Clare Kember, Head of Outsourced Governance Services at IGG, comments:

“Our skills audit shines a light on the varied skills and capabilities that are required of the modern pensions manager. A capable and high-performing pensions manager is central to the success of any well-run scheme – ensuring it operates efficiently with high standards of governance and effective communications between companies and trustees.”

“At the same time, in-house employees are expected to juggle a multitude of tasks in a highly complex landscape. The last six months have shown regulatory change and reporting requirements are liable to come from multiple directions at once.

“It is vital firms keep up with emerging requirements for specialist skillsets in areas such as sustainability and cyber-security. Employers also have to ensure the people tasked with these responsibilities have sufficient support and bandwidth to prioritise their responsibilities to their pension scheme.”

“Our findings demonstrate how modern pensions managers are required to be all things to all people, and how recruiters are competing for candidates in a narrowing talent pool. With pensions playing a significant role in corporate decision-making, firms are increasingly likely to turn to specialist providers of outsourced governance services like IGG for deep technical and regulatory and insight.”

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