Still, the challenges, whether economical, practical or philosophical, seem monumental. Broadridge noted a number of them in its paper:

"Because of administrative complexity and other factors, not all plan sponsors fully embrace the need to support participating retiring and retired employees."
"Many providers have no reliable way to capture valuable participant data … to allow further (communication) segmentation (by generations in the workforce)."
"Many sponsors do not see their primary responsibility as ensuring successful participant outcomes as the best way to measure plan success. Given this disconnect, plan sponsors may be unwilling to support or pay for programs designed to enhance outcomes."
"Providers frequently tout message consistency across multiple communication channels (phone, digital, print, in person) but rarely achieve it."
"Text messaging, alerts, mobile apps, and the use of social media are barely visible within the retirement marketplace."

Broadridge also laid out what it thinks are ways to address the very problems it pointed out. Among its recommendations:

Communication programs tailored for each of the generations now in the workplace: baby boomers, Gen Xers and millennials. The right approach, Broadridge said, can make a big difference. For example, with "focused education," participating millennials have increased deferral rates from an average of 4.5 percent to 8.7 percent.
Greater personalization, which can only be done by making a greater effort to collect and analyze participant data. "With minimal data elements such as name, address (email or mailing), and contribution amount, retirement providers can target content across multiple delivery channels. With additional data such as account balance, age, and investment elections, retirement providers can achieve true one-to-one personalization with focused messaging, compensation data, income projections, and gap analysis," Broadridge said in its paper.
Much more extensive and more integrated use of digital and social media. The good news here is that 12 of the top 20 providers with mobile-enabled participant Web portals are working to create "focused mobile experiences that are relevant and event-specific," the report said.
Greater use of analytical tools so that participants can track their progress in achieving retirement income goals. The idea of a plan health scorecard, the company said, is catching on with providers.

The bottom line is that providers that adopt a "multi-touch" communications strategy, according to Broadridge, can squeeze out up to 20 percent in annual cost savings, "plus double-digit returns from participation rate increases and adoption of managed account services."

Instant Insights /

Can better communication help employees save more?

More From HR Executive

Related Stories

Recommended For You