Almshouse scheme doubles members in AE comms drive

Employers have used last-ditch communication campaigns before auto-enrolment to increase engagement and ensure employees have been given a clear opportunity to take up more generous provision before it is reduced.

Charity Whiteley Homes Trust, which provides almshouse accommodation to older people in financial need, has simplified its contribution levels as it approaches its May 2014 staging date.

In a communication campaign late last year, it gave members one last chance to enrol early at more generous contributions.

Michael Pomery, chair of the pension fund trustees and a trustee of the charity, said: “As a responsible employer, we were concerned about the impact of reducing our pension contribution, but we are delighted with the outcome of our ‘final offer’ and very pleased that so many of our staff are now saving for their retirement.”

He added: “We are now thinking about how best to maintain this new-found interest in pensions saving among our workforce.”

Previously, the scheme had one third of its around 120 staff in the plan. In November, it sent individual letters and held day and night-shift meetings explaining auto-enrolment and offered a last chance to join at the old terms before the scheme changed at the end of the year.

This set off a bandwagon effect among workers, doubling the scheme membership and reducing its AE-eligible pool to around 20 workers (see graphic).

"It is quite a good example of people applying marketing techniques to pension schemes," said Trevor Rutter, consultant at communication specialists Like Minds, adding it was becoming more common in the industry.

Strong messages include anything like a special offer or limited availability, he added.

"It is also a good example of the sort of stick-carrot approach... in terms of the mixture of the positive reasons, why you should join, but also the negatives," he said.

Such calls to action are a critically important part of benefit communication, said Louise Perfect, consultant at Shilling Communication. 

"It is useful to give people information but what is the point of giving them that information if they are not going to do anything with it?" she said.

Employers and schemes could use bonuses as another well-timed opportunity to engage staff and increase communications, she added. 

Raising contributions is seen as a key challenge for the industry following auto-enrolment. Retailer Marks & Spencer revealed last month it was considering using auto-escalation to boost contributions.