Pension Communications | Insights
Sarah Jones , Head of Retirement Communication (UK)
26 Oct, 2021 · 4 -minute read

We all know about change these days – a worldwide pandemic has seen to that.

But however you happen to view change, the truth is that most people are uncomfortable with it: it’s almost always viewed with suspicion; there tends to be an assumption that change will have a detrimental impact on those affected; and it can be tricky to implement – especially when it comes to changes in the workplace.

And with multiple stakeholders, fast-moving deadlines, labyrinthine legal requirements and often limited resources, pension change is no different. Plus, it usually represents a huge challenge for those tasked with delivering the mandatory consultation.

There are many different reasons, big and small, why you will need to manage a pension change consultation at some point. And, in pensions, change can take many forms; each with one thing in common – a consultation that lasts a minimum of 60 days.

What we communicate during that period has an impact on members for perhaps 30-40 years of their lives, so making sure it is right and understood is our moral responsibility.

Get it right, and it will act as a catalyst for improving your members’ understanding and appreciation of their pensions for years to come; get it wrong, and not only are you likely to face disengagement, but it could lead to industrial or legal action too.

Our five-step plan

The workplace pension scheme is an important (and expensive) part of the benefits package provided by employers – and the process of consultation during scheme change presents a golden opportunity to engage employees with those hugely valuable benefits while promoting their end-to-end financial wellbeing.

So before you head into a pension consultation, make sure that you have a clear plan. Not sure where to start? Follow our five simple steps to make sure you combine clear strategic objectives with brilliant tactical execution.

1 Set yourself up for success

This is a complicated process with real people to consider throughout. Done well, it has the potential to help you build a great platform for future member engagement – so it’s worth investing the time upfront.

You have to think about: project governance, consultation management, establishing a comprehensive success criteria, building a sound business case that clearly sets out the context for the change – and the potential consequences therein, the timing, the stakeholders, the tone of your messaging, the impact the process will have on your members and your reputation… and that’s just scratching the surface.

This really is a ‘fail to prepare, prepare to fail’ situation, which is why the effort required to manage a change consultation in pensions should never be underestimated.

2 Establish trust and credibility

The business reasons driving scheme change are rarely going to result in increased member benefits, and it may be an expectation amongst employees that those ‘business reasons’ will drive the change – regardless of any feedback they give.

This is one of many reasons why guaranteeing consultation credibility is imperative. There is a duty on the employer to work in a spirit of co-operation with affected employees, taking into account the interests of both sides – plus, The Pensions Regulator states clearly that “we expect employers to carry it [consultation] out in good faith, taking all responses into account”.

To do this, it is useful at the start of – and during – the process to think about the ‘gives’ that you’re prepared to make. The challenge comes in communicating the results of consultation to make sure that affected members know how their feedback connects with any adjustments to the original proposal.

Roger Hattam

There is a duty on the employer to work in a spirit of co-operation with affected employees, taking into account the interests of both sides.

Roger Hattam

Managing Director, Communication Practice

3 Maintain the momentum

As is the norm with other communication programmes, consultations are easier to launch than to sustain over a period of time. The challenge of keeping people interested is a tough one – especially if the related change is viewed in a negative light.

Consultations last a minimum of 60 days for a reason – so plan regular communications and reminders to ensure members have the opportunity to digest the information shared with them, understand how the proposed changes might impact them personally, and provide meaningful feedback.

This is about maintaining a continuous feed of relevant information for stakeholders and members, monitoring those all-important engagment levels, and – above all – remembering that there is a very real personal impact to very real people at the centre of what you’re doing.

‘What does it mean for me and my retirement?’ is the most important question for members here, so make sure you give them a meaningful answer.

4 Communicate the outcome

Once you’ve finished consulting with members, it’s important that you carefully consider the feedback you have received. While it will probably take longer than first considered, this review stage is hugely important. It gives employers a good feel of what matters to employees, and sometimes making adjustments to the original proposal can be a win-win.

At the end of the day, people have taken the time to read or listen to your communications and respond in their own time, so be as transparent as possible about how many people have shared their views – and what concerns they have expressed.

This is a key factor when it comes to building (or rebuilding) credibility with members, so make it count.

5 Seize the opportunity

Now that the consultation is over, it’s time to capitalise on the great work you’ve been doing throughout the process and build on the momentum you’ve gained during what has been a prolonged period of member contact.

This is about ensuring that you have a compelling content strategy in place and that you continue to share regular information and updates – whether that’s about the changes in question, new initiatives, legislative updates, or member stories.

And because of the way that different people react to change, adjustments to strategy will probably need to be made as you go along – because when we start to think strategically, we start to understand the audience and their needs.

It’s then that we are able to set clear goals while thinking about our long-term objectives.

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