How to plan, prepare and protect
You may be thinking that “the chances of a crisis impacting our pension scheme are very low” and while that might be true, the risk always exists. Over the past three years UK pension schemes have had to navigate a series of major unforeseen incidents, including COVID-19, conflict, rising inflation and interest rates, the liability-driven investment (LDI) crisis and cyber security threats. So, if you think you could never be the victim of a crisis, think again.
Having worked closely with various pension schemes over the years, as Member Experience specialists we understand how to best support and communicate with members, especially when it involves an unexpected event that could impact members’ personal information or confidence in the scheme.
Primarily, what we’ve learnt is that members tend to be more receptive and willing to accept the unexpected if they feel like they can trust the source who is providing them with that information. If, as a Trustee Board, you start communicating with your members out of the blue, only when there’s a major change or a crisis, there is a danger your members will react negatively and dismiss what you have to say to them. They may even think it’s a scam if it’s out of the blue.
Such a situation could not only hinder the trust members may have in the governance of their pension scheme, but it could also lead to some unhappy members sharing and raising their concerns and dissatisfaction with the Trustee Board on social media or in the press.
But all of this can be prevented. It is possible to reduce the negative impact an unexpected event can have on the reputation of the pension scheme, its governance and the overall member experience.
Plan, plan, plan. Effective planning can equip you with the confidence of managing a crisis effectively and successfully.
Here are the top five things we consider when developing a crisis communication plan:
01
When a crisis occurs, time is of the essence as you don’t want members picking up incorrect information from the press. You must be quick to react and update your members on what’s happened and what you’re doing to reduce its impact. As such, it’s important to review if you have the right digital capabilities for providing instant and regular updates to members through emails or news alerts that can be uploaded to a dedicated website for your scheme members.
02
All key stakeholders, including the Trustees, HR managers and pension administration team must all be on the same page regarding the communications strategy and roles during a crisis. This will ensure a coordinated, timely response and minimise any confusion regarding the responsibilities of each stakeholder group.
03
The impact of an unexpected event can be reduced considerably if your members are vigilant and well aware of all the potential risk surrounding them and their money.
For example, according to the Government’s Cyber Security Breaches Survey 2022, 83% of cyber-attacks used phishing techniques to target people. If members are educated on how to spot and report a phishing email, they’ll be less likely to fall victim to it.
We’ve all published the scam awareness content in member communications, but do members really know what to look for? Are you equipping them with the knowledge to be vigilant? How can you demonstrate you’ve done your best to help members understand the risks?
04
Consistent and regular flow of communication is important in building trust and familiarity. If your members rarely hear from you, they’re highly likely to disregard any information you provide them with. For example, to build familiarity with your scheme’s website, you can look to develop and publish monthly news articles on topical stories impacting the world of pensions or the importance of getting independent financial advice.
If you’re unsure of what your members want to know or learn about, why not try a listening exercise? Engage, WTW’s member engagement survey tool, leverages AI-powered text analytics to quickly understand underlying member sentiment and provides actionable insights that can help identify areas that need to be addressed.
05
While the focus should always be on managing the situation before the member is at risk, second to this is being ahead of the news coming out in the press. It is better to be prepared for such a scenario which may require Trustee Boards to communicate with the media and provide a reactive comment.
Our Member Experience team has communications specialists from a variety of different fields, including Public Relations, which can be beneficial for our clients looking to plan their crisis communications strategy.
In conclusion, Trustee Boards not only have a fiduciary duty to act in the best interests of scheme members but also a moral duty. And as part of fulfilling this duty, it is key to plan and prepare your scheme to effectively manage any crisis that may harm its reputation or the relationship of trust with its members.
