Canadian HR Reporter

CANADIAN HR REPORTER September 7, 2015 22 FEATURES Find these suppliers and more in the HR Vendors Guide – your source for human resources vendors, suppliers, consultants and professional development from across Canada. Visit www.hrreporter.com/hr-vendors-guide HR VENDORS GUIDE HR VENDORS GUIDE Are you looking for help with recruitment? Training and development? Recognition? Information on HR professional development and post- secondary programs? BENEFITS Gamification a game-changer when it comes to retirement education Younger employees can be most active users By Nadia Darwish T hink back to just a decade ago and consider the business and personal tools used then. Today, devices such as iPods, flip phones and DVDs don't cut it for most of us anymore. e shift has happened quickly — we've moved from being wowed by technology to being totally dependent on it. And with many people now online and always connected, technology has truly embedded itself in our lives. This is a game-changer for workplace retirement plan spon- sors that want to motivate em- ployees to take action today on their financial futures. To teach employees about the importance of saving for their retirement, it's about being where they are and le- veraging the digital channels they are using — even when these may seem unconventional in the work environment. For younger plan members especially, retirement is decades away. We are competing for their attention as they focus on other immediate life and work commit- ments, from paying off student debt to saving for a home to just living their lives to the fullest. Technology not only allows plan sponsors to more effectively reach members, it can provide a digital footprint of employee likes, dislikes and actions so employers can provide a more personalized and relevant experience — with nudges or recommendations in the right direction to take action. Retailers have been using big data for years to customize the consumer experience — employ- ers need to do the same to engage plan members, increase their financial literacy and encourage them to take positive actions. Motivating employee participation One innovative technology-based solution being explored is gami- fication. Gamification is about integrating game mechanics and data-driven techniques into web content, services and campaigns. Simply put, the concept applies a game-oriented approach to non- game activities — such as retire- ment education — making them more engaging. Game mechanics motivate par- ticipants to get involved — and stay that way. For many business- es, including Nike and Microsoft, gamification is a powerful new tool that drives loyalty and reten- tion. rough gamification, busi- nesses are turning interested par- ties into loyal customers — and the same can be done with plan members. Sun Life developed a game-in- spired program for plan members that uses popular game mechan- ics such as: •avatars that players choose to be their personal identity •a leader board that shows how well the employee is doing com- pared to other players •a newsfeed that highlights player actions and progress, which can also be shared on Facebook and Twitter •a series of missions that players must complete to advance, with each mission focused on one or more financial educational activities. As the member progresses through the game, these game el- ements are focused on increasing employee awareness of the retire- ment savings program offered by their employer and, incremen- tally, building employee engage- ment, recognition of the benefits extended as part of their total re- wards and financial literacy. Standard gamification concepts include: •Defining clear goals: is ensures the employee has a sense of going on a financial journey. •Providing immediate feedback: Every time an employee fin- ishes a mission, his progress bar moves and the number on the trophy icon at the top of the page changes. Built-in sound effects of crowds cheering encourage play- ers to continue their journey. •Creating a sense of competition and community: Employees en- gage in healthy competition with their peers through the leader board, building community as they increase their financial acumen. These gamification concepts help make saving at work rel- evant to the employee. And by breaking the retirement educa- tion program into smaller, easier tasks, it transforms what can be a complex and daunting experience into something both manageable and fun. Positive results In looking at the effect of the program on users, metrics show strong engagement across all seg- ments, but particularly with gen- Y employees. ey were not only the most active users, represent- ing 31 per cent of participants, but were most likely to take ac- tion — 34 per cent opened a new product or increased their savings contributions. Overall, 36 per cent of members took action, which included add- ing products such as a registered retirement savings plan (RRSP) or tax-free savings account (TFSA). And many employees added more than one product (on average, 1.25 per player). In terms of ongoing and auto- matic payroll contributions, em- ployees increased their contribu- tions by 56 per cent. Of that same group who added a product or increased contribu- tions, 91 per cent transferred as- sets into their plan and 42 per cent opened a new product within one month after completing a level. ere was also a year-over-year increase in usage of the financial planning tools, including the re- tirement planner (56 per cent in- crease), asset allocation tool (44 per cent increase) and investment performance information (57 per cent increase). Be where they are now Digital technology is continuing to evolve at a rapid pace, and chang- ing the expectations of consumers and employees. Employees expect more from their employers and workplace plans — and employ- ers need to do more and be more relevant in how they communicate with and engage employees. is includes using digital tech- nology to create less traditional and more innovative ways of building employee financial litera- cy. Gamification is a fun and inter- active means of leveraging data to nudge the right behaviours among plan members, engaging them in their retirement savings journey in a personal and meaningful way that works for them — and their employers. Nadia Darwish is vice-president of market development for group re- tirement services at Sun Life Finan- cial Canada in Toronto. For more information, visit www.sunlife.ca/ moneyUP. Credit: Max Griboedov (Shutterstock) Game mechanics motivate people to get involved — and stay that way.

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