Pension comms perfection: scheme change success in six simple steps

Today, however, as organisations continue to close their Defined Benefit schemes and move their Defined Contribution schemes to Master Trust, there’s a very real need to go above and beyond a tick-box approach to communicating all things pensions.

So where do you start?

The good news is that, regardless of subject matter, with a structured approach to communication it’s possible to shift your people from awareness to understanding – even when it comes to pension change.

How to do it…

Step 1: Raise awareness

Start by making what’s changing clear to members and - as part of that - what you want them to do, making sure there’s clarity around the end goal. Simple general awareness programmes using familiar collateral such as posters, emails, and video messages from trusted figures are a great way to kick things off. And remember that, while changes can be disruptive to business, you need people to engage, so be sensitive to that when scheduling your comms.

Step 2: Keep it real

Your messaging has to be credible – as do those who deliver it. It seems obvious to say that you should use appropriate tools and channels for your audience, but this needs careful consideration. Be aware of the normal, formal, and informal channels in your organisation, and make sure you use them. Getting the right level of involvement from line managers and HR teams is crucial too, so provide them with regular information and clear guidance on what to say, and – more importantly – what not to say.

Step 3: Think member first

With pension change, ‘What does it mean for me and my retirement?’ is the most important question for members – so make sure you’re ready to answer. Determine who’s affected. Different audiences will be impacted differently, so carry out any segmentation required and remember to establish key messages according to audience type. The introduction of personal illustrations and data-driven modelling tools will up the engagement factor and help your members understand how valuable – and valued – they are.

Step 4: Value that feedback

You need to demonstrate that any consultation process has been meaningful, with member feedback properly considered by the employer. Personal illustrations help members answer that ‘What’s in it for me?’ question and are crucial when it comes clearly communicating the impact of change. Make it easy for people to give feedback and be conscious that, during any kind of consultation, things can – and will - move. And remember: if the change is contentious, you will need an effective strategy to manage the grapevine too.

Step 5: Process makes perfect

Think about the process of consultation, and ensure that, during the process, you consider how to engage with employees through regular updates. This ensures that voids aren’t created. If they are created, you can be sure that someone else will fill them!

Step 6: Decisions, decisions…

Once you’ve considered the feedback and communicated the changes that are being implemented, you enter the all-important decision phase. Again, employees need help with what their choices are and how to advise their employer. As you near the end of the decision phase it is important to monitor who’s returned their decision forms; and, as you get closer to decision deadline, move to a more targeted, personalised campaign, involving one-to-one support from HR where required.

Finally, remember to have a default position in place in case some people don’t return an informed decision.

So, what’s the end result when you start to think this way?

A pension change programme that works better; one that supports wellbeing and engagement; one that’s designed make sure your members feel empowered to make those important decisions independently; one where it’s possible to get to a stage where 100% of your people:

• are fully informed about what’s changing;
• understand how they’re affected personally;
• know what’s happening and when; and
• know what action they need to take and when.

And on the subject of new thinking, don’t forget that communicating change presents you with an opportunity to encourage your members to engage (or re-engage) with their benefits. The value of something is never as great as when it is likely to be taken away and, given the increasing amount of new options entering the market, there is an increasing requirement for organisations to deliver financial education to employees.

This provides an opportunity to engage with employees in a way you have never done before – addressing their level of debt, for example. There is a great deal of evidence that promoting wellness (including financial wellness) helps to increase productivity and engagement, so make the most of these opportunities as they happen.