The power of context

Change the context – change the response
However, when it comes to capitalizing on context, sponsors of pension plans often fall short in two ways:
• first, they become so narrowly focused on their own problems that they forget to look at the bigger picture.
• second, they treat pension issues in isolation, rather than as an integral component of a much broader employment “deal.”

The bigger picture
Yes, your pension plan might be facing challenges and, yes, your members may well be looking at some painful contribution hikes or even benefit reductions. But putting these realities into context will help to make them more palatable to employees. This means taking the time to educate employees about what’s happening to plans in other organizations in your industry, your province—and the rest of the country.

For example, do your employees know that less than 35% of working Canadians are lucky enough to have an employment-sponsored pension plan? Do they realize that this number is closer to 25% for people who aren’t employed by the government? Do they understand that private sector defined benefit (DB) plans are increasingly rare, especially in non-unionized environments? And do they know that automatic inflation protection is a feature reserved for a very privileged minority?

Educating your members about these realities isn’t “spin” and it’s not about finding a scapegoat. It’s about offering insight into the circumstances surrounding their pension plan and providing some perspective.

The employment deal
But what if you have a defined contribution (DC) plan? What’s the context that will change an employee’s negative response to significant investment losses or delayed retirement?

The answer, in part, is the broader employment picture. After all, for many employees—especially for those under age 30—your DC pension plan has never been (and never will be) a key attraction and retention driver.

With that in mind, ask yourself the following:
• When was the last time you presented your employees with an inventory of their workplace rewards?
• Do they receive an annual total compensation statement? If so, how far do you take it? Does it include the non-cash rewards or “intangibles” that so often serve as the key drivers of engagement and performance?
• Do your employees understand how their personal actions impact your organization’s performance?
• Do you recognize the positive contributions of employees and their workplace achievements?
• And what about learning and development opportunities, work/life balance, the opportunity to interact with like-minded and talented individuals?

For most employees, there’s a lot more to working than getting a paycheque. Again, the point is not to divert attention away from the pension issue or to minimize the importance of building retirement security. The point is simply to do what progressive organizations have been doing all along – recognize and promote the full spectrum of workplace rewards you offer.