Designing pension solutions is the easy part. Change is harder.
Eckler consultants spend a lot of time focused on designing solutions that are sustainable, well-governed, and aligned with the needs of employers and members. In our respective roles as pension consultants, the work that we do for clients is technical, detailed, and often complex. And that work matters.
Before joining Eckler, we also worked in non-consulting roles at large Canadian pension plans. It is this experience that allows us to bring another important perspective to the work we do as consultants.
Here is our take on both perspectives and why even the best-designed solutions don’t always translate into real world changes.
The consulting perspective
As consultants, we think in terms of optimizing outcomes to balance cost, risk, and benefit. We model scenarios, test assumptions, and aim to arrive at solutions that work on paper and in principle.
However, we consultants can also tend to overlook an important assumption about proposed solutions: that once a good solution is identified, implementation will follow. In practice, that’s rarely how the process unfolds.
The Decision-Making Perspective
In our prior roles we worked closely with the various decision-makers and know that organizations do not operate in a vacuum. Decisions are rarely made based on a single objective. Even when the proposed change is well-supported, it has to compete with other priorities, fit within broader strategies, and get buy-in from a range of stakeholders.
As such, trade-offs are unavoidable. What may appear optimal in isolation is not always the right choice in context.
The Human Reality of Change
There is another layer that we think is just as important — and often less discussed. The human reality of change and our tendency to remain inert.
Over the course of our careers, we have spent countless hours speaking with employers, and employees (many without defined benefit plans, and in some cases without any workplace retirement program at all) about the importance of retirement security. What became clear is how powerful the status quo can be.
Much of our time was spent meeting people where they are: listening to how they think about retirement, answering questions, and making complex ideas more accessible.
What stood out wasn’t a lack of good solutions. In many cases, the path forward was relatively clear. The hard part was the change required to move forward.
For organizations, the barriers often show up as competing priorities and perceived complexity. Introducing or evolving a retirement program requires time, attention, and internal alignment— resources that are often in short supply.
For employees, the challenge is different but no less real. For some, understanding (and making the best use of) workplace pension and savings options, can be intimidating. New options, even objectively better ones, can create doubt rather than confidence so staying with what’s familiar can feel like the safer choice.
It’s a useful reminder: solving pension challenges is often the easier part. The harder part is creating enough clarity, comfort, and confidence for people to move beyond what they know.
A Different Question
Taken together, our experiences point to something important. Even the strongest ideas need to pass through three distinct filters:
- Is the solution well designed?
- Does it make sense for the organization’s objectives?
- Will people understand it, trust it, and be willing to act on it?
We tend to spend most of our time on the first two. The third is where many well-intentioned strategies lose momentum.
None of this diminishes the importance of good design or thoughtful decision-making. Both are essential but they may not be sufficient on their own. Perhaps it’s time to start asking a different question.
Not just: Is this a solution that people will understand, trust, and be willing to act on it? But rather: Is this a solution that people will understand, trust, and are ready to adopt?
That shift doesn’t change the fundamentals of what we do. But it may change how we approach it by placing a bit more emphasis on better understanding the audience, and on bridging the gap between what works in theory and what works in practice.
Because in the end, success isn’t just about getting the strategy right or making the right decision. It’s about whether people are willing and able to take a step away from the current situation to explore the potential for better outcome.
We bring these perspectives and understanding to all of the work that we do for our clients at Eckler. If you would like to talk more about how our experience and expertise might help drive better outcomes for your organization and your plan members, reach out at: tmilnthorp@eckler.ca, plaifatt@eckler.ca
This issue of Insights has been prepared for general information purposes only and does not constitute professional advice. Should you require professional advice based on the contents of this notice, please contact an Eckler consultant.