The secret to a successful benefits strategy? It’s all boils down to this leadership skill
At HUB International, Faizal Mitha, the Chief Innovation Officer, is spearheading a transformative approach to pension plan design and delivery. His strategy hinges on one fundamental practice: listening.
"It really involves a lot of listening," he says. "So it's listening more than you think, and connecting the dots once I listen to a lot of different diverse sources."
Mitha emphasizes that HUB’s innovation strategy is centered on what he calls a "boardroom, lunch room, and family room strategy." This means supporting Plan Sponsors with governance and reporting while supporting plan members by meeting them where they are, using persona analysis similar to what companies like Netflix use to deliver personalized content.
“We use a comprehensive persona analysis to identify the personas within the organization," he explains, drawing a parallel to how Netflix tailors movie suggestions to individual users.
One of the key innovations Mitha highlights is the use of these personas to craft financial literacy and education programs. The diversity within these personas, especially in Canada, adds layers of complexity.
"A 35-year-old is not [just another] 35-year-old," Mitha says - especially when comparing the needs of a new Canadian to those of someone born in Canada. And, to address the evolving workforce, HUB International employs a two-pronged approach. At the macro level, they analyze data to identify broad personas within an organization. But Mitha acknowledges that this isn't enough.
“We complement that with one-on-one member strategies," he says. This personalized approach can be daunting for large employers, but it's crucial for bridging the gap between an employee's current understanding of financial concepts and where they need to be.
Mitha recalls his own experiences in the field, where he frequently encountered employees earning substantial salaries yet struggling with basic financial concepts like TFSAs or RRSPs.
"Many times I would talk to an employee...asking me questions like, 'What is a TFSA? What is an RRSP?'" he adds, highlighting the need for innovative strategies to demystify these topics and meeting plan members where they are.
The discussion around data analytics is another area where Mitha believes HUB is making significant strides. He refers to their approach as "data-driven empathy," a way to ensure that decisions made in boardrooms are grounded in the real-world experiences of the employees they affect. One practical example of this is shifting from traditional matching programs to more flexible options that might include student loan or mortgage repayment contributions.
"I've seen this countless times," Mitha says, where employers, through traditional benchmarking, realize their matching formulas are misaligned with the financial realities of their employees but their focus doesn’t get granual enough to really make the difference they are seeking.
Mitha is also candid about the challenges the industry faces, particularly around sustainability in pension plans. He often asks plan sponsors to rate their employees' engagement and knowledge of their pension offerings, with the most common response being a dismal three or four out of ten.
"That, to me, is not sustainable," he says. The focus, then, is on increasing baseline education through targeted strategies that span from the boardroom to the family room, ensuring that plan members are engaged and informed.
And the innovation doesn’t stop at education. Mitha talks about the importance of new ways of looking at auto-enrollment and other strategies to boost participation in retirement plans. Despite offering "free money" through matching programs, many employees still aren't participating, a problem Mitha attributes to either financial hardship or a lack of understanding.
"Why is it? Is it because they're in a financially hard position, or is it because they just don't understand what's in front of them?" he asks.
In the context of attracting and retaining top talent, Mitha sees the curated approach as essential.
"Communication always happens on the listeners' terms," he says, quoting one of his favorite sayings. This philosophy drives HUB's multi-channel communication strategy, which ranges from one-on-one meetings to virtual sessions, in-person group meetings, and even specialized apps.
Their ultimate goal? To reach employees in the way that works best for them, ensuring that the value of their pension plan is understood and appreciated.
