Communicating difficult benefit changes: a scheme guide
Communicating difficult messages on benefit changes is not easy. The likelihood is that some or all staff are going to suffer some consequence – with the potential knock-on impact of negative feedback, disengagement, loss of productivity or retention issues.
There are likely to be compliance or HR processes involved that will also determine the flow, structure, content and time period that will need to be followed. A plan is therefore crucial to secure the best outcomes.
Key points
- Plan the communication, involve key staff representatives and invite feedback
- Key messages should highlight the support on offer
- Remember you will be judged by internal and external parties on staff treatment
The specifics of the communication and the details of the plan will vary in line with the changes being made, the message, the culture of the organisation, the people affected, the budget and the timeframe.
There are some general principles to consider from the outset:
- Plan the communication exercise and consider whether external specialist help is needed;
- Allow time to develop the plan, and where possible test it with colleagues;
- Make the plan knowing that the delivery of the message will affect those delivering it, those handling the changes and those directly affected;
- Address all the ‘W’s: what is happening, when, who will it affect, who will be involved in the delivery, what is the impact, why is this happening, where can those affected find out more, what are the organisation’s objectives, what will success look like?;
- Where possible, flag that the communication is coming in order to avoid shocks;
- Deal in facts and be open and transparent in all communications.
Be clear and transparent
Transparency and sincerity are crucial. At minimum, the message must address the reasons for the change, clearly highlighting what support will be available for those impacted.
Where possible, tell people the outcome of this change and how it will help the organisation.
Most organisations will have dealt with at least one difficult communication exercise in its past. In the planning stages, revisit that exercise, building the insights into the current plan
For example, if a defined benefit scheme is to close, will this ensure the future viability of the organisation and protect jobs?
Visible sponsorship from senior management from the outset helps to underline the importance of the change to the organisation, demonstrates that management are involved and allows direct feedback, building trust.
With difficult news, always make sure you also put it in writing. Use appropriate content and media to spark members’ interest – email, face to face, online, seminars, webcasts, clinics, and so on. Monitor feedback and adjust further messages accordingly.
The nature of the benefit change, the culture of the organisation and the staff groups affected will be the main determinants as to what is most suitable.
Most organisations will have dealt with at least one difficult communication exercise in its past. In the planning stages, revisit that exercise, building the insights into the current plan.
Provide Q&As, personal statements, online modellers and a helpline to help staff see the direct impact of the change on their own circumstances.
‘Town halls’, seminars and ‘walking the floor’ initiatives work well. Where the financial impact will be significant, also provide them with access to one-to-one financial advice.
Keep staff updated
Consider forming a representative working party as part of the plan or use focus groups to test your approach.
Getting frontline staff and key influencers involved gives good insight and these people can also be a great asset as part of the rollout – they can be trustees, influential staff from different teams or regions, union representatives and line managers.
Make sure you send regular communication and remind staff of key deadlines and next steps. A specific section on the intranet, bulletin boards, having dedicated resource rooms at different sites and running a specific roadshow across all locations all work well.
Giving the exercise a name helps ringfence it, reducing the risk of impacting other benefits, and enables all communications to be brought together under one brand.
Consider using external specialists in the delivery of the communication. As well as bolstering your resources, they can add an external perspective – staff are more likely to see them as independent and they show you are prepared to make the investment to help staff understand these changes.
Above all, remember that this change will affect people and their lives. They and everyone in your organisation will measure you by how well you treat your people in difficult times.
Jeanette Makings is head of financial education services at Close Brothers Asset Management