Have you noticed how unsettled our world has become? If you’re planning a retirement plan transition, you’ll want to look beyond legal compliance with a transition communication approach that addresses the risks of confused and unsettled participants.
Plan transitions are risky things, managed in part by legal compliance. However, confused, angry participants pose another critical risk. Are you ready?
Whether transitioning to a new plan, recordkeeper, or investment line-up, there are reasonably clear legal guidelines of what must be communicated and when. However, a standard one-size-fits-all approach can fan the flames of participant anger and confusion.
While it takes more effort than a templated approach, your transition communicator must do the work to get to know plan participants – well beyond the Retirement Plan Committee.
A tailored solution is the only way you can be confident that transition communication is both compliant and effective at reaching the hearts and minds of your participants.
Five questions to help manage your risk:
1. Who pays your transition communication leader?
The answer can significantly impact what influences his or her decisions. Look for a neutral party whose sole motivation is your participants’ best interests.
2. Have you met your transition communicator – the person who actually does the planning and execution? Do you know their experience and credentials?
Your plan consultants and attorneys are invaluable. The great ones work in close partnership with equally-skilled transition communicators. If they’re reluctant to introduce you to the transition communication leader, ask them why.
3. Has your communication provider met any of your “rank and file” participants – not including those on the Retirement Plan Committee?
It is nearly impossible to communicate effectively with people you’ve never met.
4. How does your communicator know what your participants need, think, or feel? Does he or she use Voice of the Customer research (quantitative or qualitative) specific to your participants?
A critical question to ask when someone describes your participants’ lives, outlooks, and perceptions is, “how do you know?”.
5. Is there a face-to-face component to your transition communication? Is your plan communicator qualified and credentialed to lead workshops or counseling sessions?
Ultimately, you are responsible and accountable to your participants. Allowing unqualified people to lead your workshops and counseling sessions – or transition communication – can expose you to some very unpleasant risks.
If you’re not confident with your answers, contact us. We manage risk by helping plan participants appreciate and understand the great intentions behind your transition.
