How to increase pension schemes member engagement through DEI

Equal representation provides an effective solution…while it’s important to incorporate the principles of Consumer Duty (the responsibility of trustees to act in the best interests of scheme members and act in a way that promotes their overall wellbeing) what else can be done?

Trustees can further enhance member engagement and improve outcomes by providing clear and transparent information about the scheme, ensuring members have access to suitable investment options, and regularly reviewing and monitoring the scheme's performance to ensure it aligns with the best interests of members.

Encouraging a shift in mindset may be necessary to ensure that diversity and inclusion are adequately represented at the trustee board table. By accepting both as essential elements of a scheme’s values, you can create more opportunities to increase member engagement and improve outcomes.

Improving diversity on a trustee board will increase the likelihood that members’ needs, attitudes and perspectives are better understood. A diverse trustee board will be better equipped to recognise the unique requirements of members, such as single-parent families, minority groups and younger workers.

The Pensions Regulator also reports that 78% of their respondents felt having a diverse trustee board was important. So, how can trustee boards get there?

Pension schemes: increase engagement through your communication channels

A previous client faced a challenge to create an innovative communications campaign, which engaged a broad range of members, working in a variety of roles, across various locations. Communications were developed with jargon-free language and inclusive messaging. Existing trusted channels were leveraged and tailored campaign content was distributed with a multi-channel approach to ensure a consistent message reached as many members as possible. Messaging was intentionally simple and direct, and explicitly designed to attract applicants from diverse backgrounds.

The campaign called upon the client’s already existing internal communication channels, such as push notifications to their mobile app, line manager updates and intranet. Plus, they could tap into their employee resource groups.

As well as creating engaging communications to support the application process and to promote shortlisted applicants, the nomination process from end-to-end for applicants with a view to removing barriers, improving access and making the process transparent, was also reviewed. A series of recommendations were created to make this process simpler.

In total, 16 applications were received from employees across a range of backgrounds and levels of seniority within the business – four times higher than in previous years.