Five tips for making sure pensions communications help your entire workforce

Saying that auto-enrolment has been a success is a bit like saying we’re a healthier nation because the majority of us are signed-up to a doctor. Auto-enrolment has forced us into taking a first step but this will only be a success if we save enough.

If we don’t pay attention, we won’t have enough when we need it. We’ll have to work longer, we’ll be a burden on our employers and they’ll be dealing with the fallout of unengaged savers. However you look at it, we need to take notice of our retirement.

As an employer, it’s in your fundamental interest to make sure that your employees are financially resilient. A financially healthy workforce will be a more productive one. This means that you need an effective engagement programme. And, the most effective programmes are the ones that are relevant to the individual, not just the demographic. So how do you achieve this?

1) Establish a baseline

It’s no good talking to someone about pensions when they don’t understand the basics. Market studies show us that financial education is low across all demographics, so begin by educating your employees about managing their finances and making themselves financially well. Once that’s in place they’ll be better equipped to fully understand the benefits of saving for their future.

2) One size doesn’t fit all

Survey your employees to understand what’s important to them and then address specific employee needs. Consider the short and medium-term needs your people have and how you can help. Starting a savings habit by addressing important goals such as a house deposit, will lay the foundations for building future contributions to meet longer-term requirements.

3) Make your messages accessible

Understand the channels you have and how your employees want to be communicated to. Email and social media supports those with access and a preference for digital channels. Others will value traditional channels (intranet, posters or direct mail) or face-to-face interaction such as 1-2-1 sessions or team briefings. Use the range of options available to you to ensure that employees can access your communications when and where they want to.

4) Keep it simple

Think about the language you use and about how your employees want to be spoken to. For a lot of people the starting point of their knowledge is low. So frame the way you speak about pensions with this in mind. Jargon and technical wording will only turn people off.

5) Consider the individual

Finally, is it time to stop thinking of people in terms of the generation they fall into? Two female employees at age 35, married and with a child could still have wildly different financial priorities. Perhaps it’s time we started thinking about how we group behavioural tendencies and how that impacts on the ability to save. We’ve recently conducted a piece of research looking at attitudes to saving and there are some interesting findings around the behavioural psychology and its impact. Keep an eye out for it in the next couple of weeks.

Author is Andrew Turner, Proposition Manager Benefit Consulting at JLT Employee Benefits.

This article was provided by JLT Employee Benefits.