Employee savings: Taking on the middle market

SMEs and ETIs are the players with the lowest equipment rate.

Employee savings confirmed its growth in an uncertain inflationary environment. Insurance players are now turning to targets with low equipment rates, ie SMEs and ETIs.

Small and medium-sized businesses better watch out. At the end of a health crisis that will have turned the organization of work and the employees themselves upside down, the sharing of value takes on meaning and scale. The war in Ukraine and inflation only accentuate the trend at a time when purchasing power is on everyone’s lips.

The trend is clear today, more and more ETIs, small and medium-sized companies are turning to employee savings. The trend is only accelerating with particular logics of purchasing power. Employee savings is a vehicle to be put forward by the company since there are possibilities of releasing it fairly quickly “says Marie-Pierre Ravoteur, director of company retirement savings at Axa France.

75% of TPE for Axa France

The results for the first five months of the year for Axa France confirm this. The French insurer recorded an 11% growth in its activity compared to the same period in 2021. The equivalent of 430 new member companies, i.e. 6,792 new employee savers. Among the new subscriptions, 75% are VSEs.

Dichotomy between actors

Unlike large groups, whose equipment rate is close to 100%, small and medium-sized companies are still struggling to equip themselves. Although companies with more than 50 employees are obliged to set up this value-sharing mechanism, companies with fewer than 50 employees benefit from a 0% social package.

The tax incentive put in place by the government was not enough, however, since their rate of equipment remains low. ” Small structures – less than 10 people – have an equipment rate of less than 15%. However, the Pacte law, by abolishing the social package in companies with fewer than 50 employees, has reinforced the effectiveness of the systems in VSEs and constitutes a turning point for the employee savings market.explains Pierre-Emmanuel Sassonia, chairman of the Planète CSCA employee savings/retirement savings commission. Profit-sharing, profit-sharing and employee share ownership are mechanisms that allow value to be shared with employees and constitute a formidable tool for renovating the social contract. If the PEPA bonus scheme, allow to support purchasing power short term. L’profit-sharing, profit-sharing and employee shareholding are powerful levers for stimulating social dialogue, motivating and retaining employees, and I believe that they create more of value over time “.

Brokers do not miss the mark

No exception for brokers, who until 2019 (Pacte law) worked with account keepers on these subjects. ” The year 2021 was extremely positive in employee savings with equipment which accelerated in small businesses. Production of new plans increased by 20% compared to 2020 and continues to accelerate in 2022. We are recording further growth of 10% in the first six months of the year », Comments Mathieu Chauvin, president of the Eres group.

The success is all the more promising because this type of investment is still widely considered for its tax advantages by the French. However, a majority of production will take place at the end of the year.

Green, the responsible

The latest study published by The cross » and the association Fair (ex-Finansol) announced, at the beginning of June, an increase in solidarity savings « record “. From this perspective, employee savings stood out and presented itself as one of the most fruitful channels in terms of ” solidarity investment », ahead of bank savings.

The willingness of employees to invest in responsible investments is strong. They position themselves very clearly on environmental and social issuesconfirms Marie-Pierre Ravoteur. We have encountered a real underlying trend with regard to so-called green investments. This generated very good compensation in 2021. The year 2022 is slightly different since value stocks outperform growth stocks, we know that most SRI stocks are growth and long-term stocks. On the other hand, history has shown that over a long period of time, these investments are going to be the best performers. “.

Blue or white collar?

The end of 2022 promises. In an inflationary context and rising interest rates, the behavior of savers should be scrutinized.“ It will be interesting to observe the behavior of savers in this context of decline in purchasing power. Faced with this situation, will savers withdraw their savings? Will this savings, given the context of the financial markets, have a defensive approach or will they consider this as a financial entry point? Currently we are in the middle of a participation and profit-sharing campaignthis will give us an initial trend in employee behavior,” argues the company retirement savings director at Axa France.

Insurers were expected this week in Bercy, to discuss the role they will have to play in the fight against the decline in purchasing power. The opportunity for them to highlight this type of device.

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