The holidays are a magical time. For many of us, they offer a period of reflection, renewal and planning for the coming year. It’s a chance to ask ourselves if there’s anything we did over the past year that we can do better in the year ahead. Or, maybe there are things we didn’t get around to—things we can put on our wish list for the new year.
Are you making a list of things you’d like to do to improve your members’ level of engagement in—and appreciation for—your pension and benefit plans? If the following three items aren’t already on your list, you might want to work them into your plans for 2015.
1. Find new ways to communicate with your members
We live in an age of communication overload. From the moment we wake up and turn on the radio or TV, or check Twitter and Facebook on our smartphones, we’re bombarded with information. It’s hard to filter fact from fiction, and focus on what’s most useful.
This means plan sponsors have a small window of opportunity to connect with their members and make an impact. The most successful plan sponsors are always on the lookout for ways to minimize communication interventions and maximize they mileage they get from each one. Beyond simply personalizing statements, emails and booklets, they’ll go the extra mile and customize materials for different demographic cohorts—using different language, layouts and mediums (such as online and print) for younger and older members. Some have begun to to complement a written message or to paint a picture for low-literacy members. And, for a growing number of plan sponsors, communicating better involves a strong focus on financial literacy. Research has shown that even your most-educated employees aren’t always financially literate. Plan sponsors that help their members make better financial decisions will find themselves ahead of the game.
2. Frame the sustainability discussion
Market volatility, low interest rates and longer lifespans are all part of the new reality. In this environment, benefit and pension plan sponsors owe it to both their members and their organizations to explore the long-term viability of their plans. But, as a growing number of plan sponsors have found out, there’s a right and wrong way to position sustainability issues with members.
The right way involves first establishing a strong level of trust between the plan sponsor and members. This is a lengthy process that starts with open, honest and supportive leadership, and includes regular communication so that members understand the facts—the plan’s health, the challenges it faces and their potential impacts—and believe they are part of any ongoing discussion on how to address these issues. Done right, plan members may start to see “sustainability” as something other than a dirty word, and will likely end up with a better understanding of their plan in the process.
3. Communicate the value and cost of benefits
In many cases, members see their workplace pension and group benefit plans not within the broader context of their overall compensation package, but as extras without real, tangible value. In the case of group benefits, members may understand the plan’s value only after they’ve had a major expense reimbursed—and then promptly forget about it until their next claim. And with retirement plans, even the most tuned-in members are unlikely to grasp the real value until they retire and start to see payments from the plan.
A communication program that reinforces the notion that benefits are expensive to provide, and would be difficult for members to replicate or afford on their own, will help build member appreciation over time. This can also go a long way toward helping your members accept sustainability challenges. If they understand the costs involved in providing these plans, they’re more likely to be okay with any changes you make to ensure the plans remain viable.
As we move into the end of 2014, enjoy the spirit of the season. But don’t forget to take time to reflect on what’s working in your current communication strategy—and what’s not. It’s well worth the time. More importantly, think about what you could do in 2015 to connect better with your plan members and get the most from your investment in their current and future well-being.