Spring 2006

Boosting Contributions, Increasing Participation: An Integrated Campaign Strikes the Right Chord for the State of Tennessee's 401(k) Participants

Author: Great-West Retirement Services

Challenge
Tennessee state employees were about to get a double dose of good news in the summer of 2005. First, their paychecks were getting a little larger, thanks to a statewide 3% salary increase. At the same time, the state had decided to increase its matching contributions to 401(k) accounts by 50%-from $20 to $30-for participants who contributed at least $30 a month.

For the sponsors of the state's 401(k) Plan, the news represented perfect timing. It offered a unique opportunity to address one of their longstanding goals: increasing contributions from participants in the lower contribution range. Because employees would have more money in their pockets each month, Plan sponsors hoped all participants would be open to the idea of increasing their contributions. But for lower-contributing participants who had other plans for their raises, the increase in the matching contribution could provide just enough incentive to nudge them up to or even a little past the $30 per month watermark.

The Plan sponsors recognized that they needed something beyond their usual communications tools to get the message out. They needed to broadcast the right messages at the right time in a way that would educate and motivate participants. So they turned to their partners at Great-West Retirement Services® for help.

Solution
Great-West Retirement Services developed a compelling, fully integrated communications campaign and precisely timed the delivery of the pieces to coincide with the salary and match increases. The strategy behind the campaign was based on the idea that an out-of-the-ordinary approach would be the best way to capture participant attention.

The Great-West Retirement Services marketing team departed from the existing look and feel of the Plan's communication materials and created new, colorful materials that emphasized Tennessee's unique musical heritage.

The campaign kicked off with an e-mail to all employees notifying them of the increase in matching contributions-and the opportunity to use the salary increase to boost their contributions and take full advantage of the match. Posters and fliers reinforcing the announcement came two weeks later, followed by a similarly themed newsletter in the next two weeks. Each communication reinforced its predecessors in both messaging and design, helping to raise awareness and create the workplace "buzz" critical to the success of the campaign.

An Integrated Campaign Strikes the Right Chord for the State of Tennessee's 401(k) Participants

    • Week One: E-mail to employees
    • Week Two: Promotional Posters
    • Week Three: Employee Newsletter = BUZZ
Results
In the short time the campaign has been in circulation, it has generated significant results. To date, more than 10,000 participants have increased their contribution levels, with more expected as the campaign continues to gain traction. To put that in perspective, the Plan normally sees about 300 contribution increases per month. Even more impressive is the fact that 70% of the increases came from the target audience-participants contributing an amount below the newly instituted match. The campaign also had some unintended-though equally positive-results. Participation levels increased significantly, with 767 new enrollments in July and 1,378 in August. The Plan usually adds significantly less than that, averaging 370 new participants each month.

With numbers like those, the success of the campaign generated buzz beyond the state of Tennessee.

The early results were submitted to the National Association of Government Defined Contribution Administrators (NAGDCA). As a result, NAGDCA awarded the Plan a 2005 Leadership Recognition Award for its outstanding communication and enrollment campaign.

As participants continue to take advantage of the good news they received in the summer of 2005, the Plan can join in the celebration due to the success of the campaign. Deana Hannah, with the state of Tennessee Treasury Department, summed up the effort nicely: "Great-West Retirement Services put together a fantastic effort in a short time, and it has delivered amazing results."