With the introduction of auto-enrolment from 1st October many companies are taking the opportunity to review their wider pension schemes; using auto-enrolment to evaluate, and possibly even change, current practice for the greater good. But changes to pension schemes, even the addition of auto-enrolment, is a delicate and sensitive subject – well considered, planned and targeted communication is fundamental for your business to feel the positive benefits of pension changes.
The auto-enrolment law is a driver for fairer, equitable and importantly sustainable pensions schemes; something that defined benefit pension schemes, specifically final salary, can not always offer companies. With the pension deficit in some companies growing annually, auto-enrolment provides employers with a platform to re-evaluate current procedures and lay the foundations for future change.
With change comes apprehension; your employees may find it daunting, confusing even. It is therefore imperative that any changes are announced through effective employee communication in a timely manner. Any change requires good communication between employer and employee, but financial changes, must also be treated sensitively and sympathetically. Employees will want to know how these changes will affect them personally, so keep this in mind when preparing any communications.
Targeted, tailored and personalised are the watch words with pension communication.
Employees will also want to know why you are making changes, it’s important to inform them how the changes will be for the long-term benefit of the company and it’s employees. Financial education is the bedrock for planning pension communication, and that doesn’t mean it has to be dry and flat. If you take the time to engage and explain to employees, this effort will be appreciated, if it is done well.
Your employee communication strategy can not therefore be an afterthought; effective communication will drive change in your business and will aid a smooth transition, even in a difficult situation. Providing clear, open and effective communication is the key to success.
