Digital communication revolution for retirement savings
The use of targeted, personalised tech-based communications trialled by employers we work with have seen one third of employees take action towards increasing their pension contributions.
Using insights from behavioural science, employers can identify their employees’ savings needs on an individual basis, allowing them to tailor messages directly.
At the same time, technological advances mean communication can be delivered in ways that engage employees who are often information overloaded and time deprived.C Today’s effective communication is based on the fundamental principles of timing, education and empowerment.
With many employees struggling to stay on track financially, engaging communication strategies can encourage employees to make positive changes to improve their personal financial wellness, both in the present and for the future.
The personalised video
Having understood the importance of timing, education and empowerment in pensions communication, employers sent their workforce a link to an online personalised video.
In the space of 90 seconds employees receive a personalised summary of their pension plan including a breakdown of total contributions. The video makes clear the value of both employer and employee contributions in addition to investment growth.
Furthermore, the employee is given the projected income they can expect from their retirement and how this compares with their current take home pay.
Most importantly the gap between insight and action is bridged as the employee is guided to a link where they can immediately take beneficial actions such as increase pension contributions.
The results
Of the 2,223 personalised video links sent to a group of employees in the UK more than two thirds (67%) of employees watched the personalised video and of those, more than half (51%) took further action to increase contributions.
At one employer, more than a quarter (26%) took further action in 24 hours alone.
One pension manager who trialled the personalised videos said: “It’s only been 10 minutes and we’ve already received at least half a dozen ‘increase my pension contributions’ requests.”
A second called the personalised videos ‘a great success’ adding: “In the first day we had dozens of emails from employees requesting increases to the pension contributions, a great success already.”
Employees also found the video rewarding. In particular viewers said they were made aware of the need to take immediate action to increase pension contributions, while others said the content helped them to better understand their scheme.
One employee said: “Excellent idea that really cuts through the jargon and gets right to the point and really made me sit up and take notice and realise that I needed to act now.”
A second added: “I thought it was clear and concise. Pensions is a topic most of us try to avoid, because it seems too complicated and long-winded. This simplified it well.”
Timing, education and empowerment
The use of personalised videos is just one tool available to employers in getting the pension message across.
The principles of personalisation and effective timing can be applied across a variety of technology platforms and communication channels; from simple personalised texts to more sophisticated videos.
Significant developments in behavioural science mean we understand how to communicate effectively with employees, while technological advances allow us to deliver the message efficiently.
It has never been easier to engage employees in the importance of making positive financial decisions and securing a better financial future for themselves and their family. What are you doing?
Key takeaways:
- Effective employee communication is personalised
- Messages should be relevant, timed and accessible
- A range of technology is available from the simple to the sophisticated
- Communication can be used to drive positive actions and better financial decisions
Mark Rowlands is head of DC and financial wellness services at Mercer.
This article was provided by Mercer.
