EMPLOYERS who do not keep staff updated on the pensions packages they offer risk demotivating their workforce and losing out in the battle to attract skilled employees, according to people management experts the Chartered Institute of Personnel and Development (CIPD).

The warning comes in response to the CBI/Mercer survey on pensions uptake by employees published, which concludes that many employees remained ignorant or unsure about the benefits on offer and were failing to take advantage of company contributions.

CIPD research published last month revealed that while 88 per cent of bosses tell employees about pensions during the recruitment and induction process, only 46 per cent continue to keep employees informed on an ongoing basis.

Charles Cotton, CIPD adviser on employment conditions, said: "Employers are selling themselves short, and could lose out in the battle to recruit and retain suitably skilled workers."

Updated: 11:01 Wednesday, April 07, 2004