Change communication for change projects in occupational pension schemes

Occupational pension schemes (bAV) are often a significant part of the overall remuneration package and valued by employees. Offering a pension scheme is crucial element in attracting new talent and retaining skilled professionals. There is a talent and skilled workers gap, which is exacerbated by demographic changes in several sectors, increasing the significance of employee loyalty for employers. This underscores the need to professionally manage change in relation to benefit and compensation agreements between the employer and the employee.

The pursuit of risk reduction and the desire for a more equitable distribution of risks between employers and employees are just two of the reasons why a number of companies change their occupational pension schemes. These changes often have an impact on the existing workforce. Frequently, these changes are either objectively detrimental to employees, or they are subjectively perceived as such, which can significantly disrupt workplace harmony and labor relations.

When implementing changes to occupational pensions schemes, it is crucial to take care when communicating these measures to employees, even if the changes are not drastic. Only through a truly tailored communication program can the employer avoid posing a threat to employee morale and loyalty to the company. Therefore, for a successful and smooth implementation of change projects in occupational pension schemes, it is not enough to merely communicate the content to those affected.

In this interview, Esther Weiser , Principal at Aon, explains change communication, why it is so important today for occupational pensions, and how Aon can support clients holistically.

What is change communication?

Esther Weiser : In addition, to simply conveying information, change communication also involves addressing the educational and emotional aspects, such as creating understanding and fostering acceptance, or ideally, approval, for a planned or decided measure among those affected. Various methods are employed to reduce resistance, fear and to transform affected individuals into active participants. Change communications is an essential component of change management, and it completements internal corporate communications with specific tools and instruments that have proven effective change situations.

?Aon Wealth Solutions provides a structured approach to change management and specialize in change management projects for occupational pension schemes.

How can change communication help to successfully implement a change project?

Esther Weiser : If a remuneration component that is valued by employees, such as the occupational pension scheme, changes without adequate accompanying communication, this can quickly lead to a feeling of lack of appreciation among those affected. A lack of understanding of the interrelationships also generates uncertainty and resistance with negative consequences for the working atmosphere.

Through our communication solutions, we ensure the correct implementation of change management programs?and successfully in terms of content, but also gain the necessary acceptance and approval from the workforce. This supports the retention of talent and skills in the company, which is of decisive importance in the much-cited "war for talent" and, in the best case, radiates beyond the change project in the occupational pension scheme.

What is the advantage of having change projects supported by Aon's "Change Communication" service?

Esther Weiser : The advantage for our clients is that we can combine our professional expertise in occupational pensions with change communication methods to provide a holistic consulting service. In practical terms, having a resolute communication specialist and a pension specialist in Aon eliminates the need for knowledge transfer between these areas. This results in a smoother communication process as Aon is versed in both fields and can effectively communicate with stakeholders without any knowledge gaps.

We can support in communicating in terms of content, but also in a way that is appropriate for the target group and integrates the message, while - and this is crucial - consistently considering behavioral science. When developing and implementing a communication strategy, we consider the corporate culture, other requirements and restrictions imposed by the client or the specific situation.

What does such a communication strategy look like?

Esther Weiser : We offer customized communication strategies that always focus on the specific situation, culture, and goals of the client. For us, there is no standardized approach; we develop each strategy situationally based on proven methods. This requires close cooperation with the client’s responsible departments. It works best when the communication strategy is developed jointly, fitting into the existing corporate culture, developing during the project and ensures a sustainable impact within the company.

The implementation of the developed communication strategy is delivered with our "multi-channel approach" (emails, brochures, flyers, posters, videos) with communication measures that can inspire, convince, and change behavior and that are suitable for the diverse types of people within the workforce. The goal is the acceptance of the change by the employees.

Why is change communication becoming increasingly important?

Esther Weiser : The choice of the right employer communication strategy is a decisive factor for employee satisfaction and retention. As explained at the beginning, deficient communication quickly leads to a feeling of lack of appreciation as well as fears and resistance. This can lead to poor morale within the workforce, reduced engagement, declining productivity and/or higher levels of sickness absence. In the worst case, an "internal" or actual resignation occurs.

The importance of adequate change communication has increased, not least due to the special challenges of hybrid working and the flood of (mis)information in social networks. At the same time, companies are facing new types of communication for whom the mere provision of information is even less sufficient than it was for the previous ones. Millennials and future generations, who are taking up an ever-larger share of the working population, prefer visual representations of complex contexts and want to be convinced in terms of content. Multimedia communication offers opportunities to reach the entire spectrum of addressees in an integrative form.

Conclusion

Anyone who implements a change project in the occupational pension system without accompanying it with communication that considers not only informative but also educational and emotional aspects misses the opportunity to turn those affected into participants who feel connected to the matter and the company. Communication always takes place anyway, if not officially and structured, then in the form of rumors and suspicious speculation beyond the ability of those responsible to influence. Proven communication methods can have a significant positive influence on the attitude and thus the motivation of employees and create and maintain lasting loyalty. Especially for such an essential element of remuneration as the occupational pension scheme, it is appropriate to make the supposedly higher effort of method-based change communication in order to take advantage of these opportunities. In most cases, the effort is only higher at first glance, as successful change communication can considerably relieve the burden on the responsible departments at the client by reducing or eliminating the need for a high level of mediation afterwards.

This article was first published on Aon's German corporate blog: https://aon.io/3ynpFtj