Automatic Enrolment What can HR professionals learn from our workplace pension campaign? 1
Campaign Objectives 1. Maximise employee participation by communicating benefits of a workplace pension and reinforcing personal and social norms 2. Communicate the benefits of a workplace pension, particularly in the context of contribution increases in April 2018 and April 2019 3. Maximise compliance amongst all employers through the process of enrolling eligible workers, and re-declaration of their employees 2
Background and context of the campaign Since 2012, the workplace pension communications campaign has played a key role in supporting the roll out of Automatic Enrolment (AE) to ensure people are saving for retirement and reverse decades of undersaving April 2018 saw the first of the two statutory minimum increases to workplace pensions contributions for both employees and employers, with the second due in April 2019 Employees Employers Previous 1% 1% Current 3% 2% April 2019 5% 3% The campaign strategy is to positively reinforce inertia, in order that people remain enrolled and continue to save into their workplace pension For employees the aim of the campaign has been to change the relationship people have with their pension, moving it from something complex and best ignored, to something on your side that you should get to know For employers the campaign will support remaining small and micro employers (and new employers) to comply with law, but also provide additional support for employers to help them become advocates of the workplace pension 3
Evolution of the campaign: based on audience insights I m in (2012-2013) We re all in (2013-2015) Don t ignore (2015-2016/17) Get to know (17/18 onwards) Objective To raise awareness among individuals of the workplace pension To make the workplace pension saving normal To increase employer and employee understanding of the workplace pension To communicate the benefits of the workplace pension Primary: Employees Primary: Employees Audience Separate TPR campaign: Primary: Large employers Separate TPR campaign: Primary: Medium employers Primary: Small and micro employers and employees (joint campaign with TPR) New audience small and micro employers Secondary: employees Primary: Small and micro employers (joint campaign with TPR) Secondary: employees, especially the at risk Strategy Targeting hardest to reach segments - the unprepared and daunted - by emphasising personal norms Social norming to encourage employees to stay enrolled Bringing the workplace pension to life to jolt the complex SME employers and employees Reinforcing norms and emphasiing benefits of workplace pension among employees Implementation Multi-channel campaigns 4
Current campaign focus 5
Creative approach Launched October 2017, six months before the first increase in contributions Channels include TV and radio advertising, digital and social media, out of home display, plus celebrity endorsements and employer advocacy Focus is on changing the relationship you have with your pension Creative focus of industries where there are high levels of potential non-compliance: hospitality, retail, construction, and office Social norming and benefits led messages for employees: Millions of people are saving into a workplace pension A workplace pension earns money for when you retire When you work, your pension works When you pay in, your boss pays in too Employers need to comply with the law Get to know your responsibilities 6
TV advert You can watch our videos at: www.workplacepensions.gov.uk 7
Our latest employee creative: you work your pension works 8
Employer creatives 9
We also have a number of celebrity advocates: You can watch our celebrity videos at: www.workplacepensions.gov.uk 10
Importance of employer advocates 11
Employers voices are key Employer support in spreading awareness about the workplace pension campaign is very important to DWP The workplace provides a natural context for conversations about pensions, as people already engage with money in this environment through wages Employers are a trusted source of information and advice Some employers don t feel equipped to provide advice and guidance A trusted work environment is the perfect place to be reminded of the benefits of having a pension CIPD Employee Financial Wellbeing Report January 2017
Why should employers support their staff to save for the future? Employees who were troubled by their financial situation were twice as likely to be in poor health as those who were not. resulting in higher stress levels, increased absence and low work engagement. Global Benefits Attitude Survey 2017, Willis Towers Watson Risk Management 13
Why should employers support their staff to save for the future? Employers have a vested interest in helping their employees improve their financial well-being: reducing financial worries amongst employees could raise staff morale and performance, increase trust between employers and employees, and improve retention levels. Using the workplace as a conduit for financial help offers a winwin opportunity for employees and employers. Financial Well-being in the Workplace: A Way Forward March 2017 Prepared by the Financial Advice Working Group for HM Treasury and the Financial Conduct Authority 14
Employer advocate: Bromborough Paints I have always seen pension, as an absolute no brainer even if you pay the minimum contributions, which I know is hard for some, but what is this nowadays a few pints of beer or glasses of wine a week, cut them down, and pay what you can afford when you can afford it. Gisueppe Alfonso, Financial Director, Bromborough Paints 15
What can HR professionals do to support their employees? We already have a letter that employers to give to their employees, which talks about the benefits of saving into a workplace pension Later this year, DWP will be approaching UK employers and their HR departments with an exciting opportunity to collaborate Together we will develop bespoke workplace pension communications, tailored for your organisation and workforce The aim will be to encourage staff to Get to know your pension Materials might include: posters for use on noticeboards or in canteens Q&As and myth busters on site Pension Wise appointments workshop pack for team meetings advice on household budgeting for the staff intranet HOW DO I TAKE PART? If you are interested in getting involved further please contact FUSE, our partnership marketing agency (phil.eacott@fuseint.com) 16
You could also help raise the profile of pension savings on social media Social Media We regularly post information on our Facebook www.facebook.com/dwp and Twitter accounts www.twitter.com/dwp. If you follow our accounts, please consider sharing or retweeting some of our posts. We use the #YourPension tag to help people find linked information and advice. Again, please consider using this hashtag on your own channels, when you re talking about financial planning for retirement. Our key messages are: Get to know your pension When you work your pension works When you pay in, your boss pays in too Example tweets: Millions are already benefiting from saving into a workplace pension, make sure you are too. Get to know #YourPension Having a workplace pension is like having another you at work. Get to know #YourPension Saving into a workplace pension is an easy way of saving for your future when you pay in your boss pays in too 17
In summary Our communications campaign activity is working and will continue to work We need to ensure that people are saving for their retirement and we need to communicate the importance of saving, especially saving into a workplace pension Employers are a trust source of advice for their employees We need you to advocate the importance of saving into a workplace pension And we want to help you to do so Please get involved, contact: phil.eacott@fuseint.com for more information 18
Thank you for your time. 19