We will all have our own views on what the 2015 pensions changes really mean, but from a sponsoring employer perspective there are opportunities to engage with staff on pensions in a way which, to date, has been challenging. When you’re able to talk about retirement saving in terms of flexible cash lump sums, staff can relate to cash and that’s a start.
With the right communication plans in place, it will be a lot easier for employers and trustees to show scheme members the value of the benefits they receive, and also demonstrate the benefits of the member choosing to contribute more into their pension scheme. What they do with it then is another matter, but increasing understanding, appreciation and saving is a big step forward.
My organisation applies key principles in all of its member communications, whether these relate to defined benefit or defined contribution pension schemes. These are aimed at supporting our staff and trying to make their lives that little bit easier. The key principles we adopt which can be applied to any business are:
- Consistency: use the same, clear format every time, building on a theme
- Authenticity: messaging should be clearly aligned with corporate goals, not a pension scheme
- Relevance: we must understand the employee perspective and tailor the messages
- Engagement: we must use the channels that resonate best in the various areas of the business
- Simplicity: it’s got to be really easy to understand.
The guidance ideas from the government are helpful, but they don’t go far enough for the caring employer. Providing support helps embed whatever strategy is adopted and shapes the future agenda for employers, trustees and members alike.
We also provide wider staff support by running regular pension scheme member surgeries at our airport sites, and high on the agenda for the rest of the year will be educating members and seeking their feedback on what they want to us to offer in the future.
As an employer, it’s great to have these opportunities. In the new world, I think a well-planned and executed communications strategy will go a long way for employers to drive high engagement and value from their pension spend. Bring it on