Bianca S. Moyo, Senior Communications Manager at Salt Employee Benefits
By now it is common knowledge that every retirement fund contributor is aware of the two-pot system and what it entails. However, communication managers need to take a step back and assess if this “common knowledge” is accurate and sufficient. This may be the best time to overcommunicate to cover all the angles in ensuring that members have a full understanding of how the two-pot system will work.
Communication managers are at the forefront of this change and play a vital role in preparing their operations teams, clients and stakeholders for 1 September 2024.
Overcommunicating is often regarded as negative however in this instance, it could be a case of “too much” is just the right approach. A new regulation often comes with misunderstanding depending on how easily one can access the information. Communication professionals can ensure that retirement fund members are well informed with the two pot system benefits by revisiting their communication strategies. Overcommunication is particularly important during times of change and for clarifying and reinforcing key messages. Not only does overcommunication inform but it also ensures that messages are clear and easily available to all parties involved. This reduces the likelihood of confusion and misinterpretation which can lead to frustration. Members need to be furnished with practical examples of calculations on how withdrawals may affect their payout when they reach retirement.
Over-communicating helps set and manage expectations. When members are aware of what to expect, there is less room for disappointment or surprise when the two-pot system is officially launched on 1 September 2024. It also cultivates interest and transparency, and frequent communication builds trust. When members feel informed and involved, they are more likely to trust you as a service provider and the information being shared.
Clarity is paramount in effective communication. Communication managers should strive to convey their messages in a clear and concise manner by avoiding jargon or overly complex technical language that might confuse members. Use of diagrams and infographics can ensure that the intended message is easily digestible. More importantly managers can draft their two-pot communication in different South African languages to accommodate those who may not be familiar with the English language.
Diversifying communication channels to reach a broader member base can be one of the strategies that managers implement. In today’s digital age, communication managers have an array of tools at their disposal, including email, social media, intranet platforms, and video conferencing. Assessing the preferences of members and choosing the channels that align with their communication habits can help convey the message effectively.
In the realm of effective communication, the journey is ongoing. Communication managers play a vital role in shaping the narrative around the two-pot system. Contrary to popular belief, it is imperative for members to know that it is not compulsory for them to withdraw their savings. The two-pot system was introduced to allow members to access a portion of their retirement fund savings in times of financial crisis. Members should be encouraged to only withdraw when faced with a significant financial crunch rather than withdrawing for the sake of it.
The truth is, withdrawing savings will have a negative compounding impact over time.
Managers must have communication project plans with clear timelines. Relating to frequency, while it is essential to provide regular updates, it is advisable to avoid overwhelming members with excessive inconsistent communication. To assess whether the members have understood the ABCs of the two-pot system, surveys can be conducted to gauge their knowledge on the matter. By evaluating the results of the survey, managers can subsequently communicate more on areas that members do not understand.
Albeit over-communication is valuable, it is essential to strike a balance to avoid information overload. The goal is to ensure that important information is shared, understood, and acted upon, without overwhelming members with unnecessary details. The two-pot system is new and best believe members are eagerly waiting for it. Communication managers only have this chance to make an impact on members’ financial habits.
Once 1 September 2024 strikes, it may be too late to try and convince members otherwise about the withdrawals.
ENDS