Grant’s Best Practices: Identifying Your Key Stakeholders

We concluded the last best practices piece by highlighting the importance of planning for engagement with stakeholders.  The first step in developing a stakeholder engagement plan is to identify who are the stakeholders – groups or individuals who have an interest in your proposal or program and/or the ability to influence outcomes.  

Today we’ll cover:

• How to identify stakeholder that are likely to play an active role in the development of state-facilitated retirement savings program proposals;

• The importance of actively soliciting stakeholder participation; and

• Prioritizing engagement efforts based on how stakeholders vary in terms of their levels of influence and interest as well as the different roles they might play.

Identify the likely stakeholders

For those who are in the early stages of proposal development, perhaps the best way to identify the range of likely stakeholders is to contact colleagues in states that have successfully moved to the implementation stage and ask.  A bit of online research may also be helpful.  CalSavers, for example, includes a summary of the program’s history on its website that lists some of the key stakeholders in California.

The legislative record may also be instructive in terms of identifying stakeholders.  Lists of official supporters and opponents in other states will provide a fairly good picture of the stakeholders who might take an interest in a proposal in your state. 

The California State Assembly Labor and Employment Committee’s June 2016 analysis of California’s SB 1234 (DeLeon, 2016) listed more than 50 groups who supported the legislation that paved the way for the launch of CalSavers and 39 who had taken a position of “oppose unless amended.”  By the time SB 1234 reached the governor’s desk, however, all but one of these groups had softened their position and were no longer opposing.

In states that have already moved to the implementation stage, stakeholders have generally included public and private sector labor organizations, business and employer associations, research and/or advocacy organizations, community and economic development organizations, financial services trade associations and, in some cases, individuals elected officials.  In terms of scope and reach, groups and organizations who have played a role in retirement program proposals have run the gamut from local and regional to statewide and national. 

Build a diverse portfolio of stakeholders

A broad and diverse coalition of stakeholders will not only increase the likelihood that a proposal makes it through the legislative process, but will also ensure a wide range of stakeholder input to shape the proposal and to create a program best suited to the needs of workers and employers in your state.  In order to ensure diversity, it pays to be strategic and to solicit the participation of stakeholders who might not otherwise do so on their own. 

Large statewide business associations and labor organizations who have the resources to monitor legislation and engage with public officials will likely engage on their own.  It may be worthwhile, however, to reach out to local or regional business associations whose perspectives may differ somewhat from their larger counterparts.

It might also be worthwhile to think outside the box by reaching out to organizations focused on economic development, community health, or social justice issues.  These groups might not necessarily have retirement savings on their radar, but will generally understand the connection between retirement security and many of their objectives.  Because of their expertise with respect to the groups they study and serve, they may have much to offer in the way of valuable input.

Prioritize stakeholder engagement efforts

Once you have a general sense of who the stakeholders are, it’s important to conduct some analysis to help prioritize and direct your engagement efforts.  Best practice resources on stakeholder engagement often refer to “stakeholder mapping” as a process of categorizing stakeholders according to their level of influence and interest.  Where stakeholders fall along these dimensions determines the type and level of engagement and attention they should receive. 

Determining who the “key” stakeholders are can be important in terms of prioritizing your engagement efforts.

Another useful way of categorizing stakeholders and determining how best to engage with them is to consider the specific roles they might play.  Which groups, for example, will take an active role in the legislative process?  Are there some stakeholder groups that might conduct their own research or even provide some form of funding or resources?  Are there any stakeholder organizations that are well positioned to take a lead role in convening meetings to solicit input or in providing communications and marketing support?  

What’s next?

Once you’ve determined who the stakeholders are and have given some thought to the role you expect them to play, it’s important to consider how you will engage with them.  The next “best practices” piece will explore strategies for effectively communicating with stakeholders.  And, I’ll also provide an explanation as to why I prefer the term engagement over management when it comes to stakeholder relations. Stay tuned!

This piece was featured in the September 24, 2020 edition of Retirement Security Matters. For more fresh thinking on retirement savings innovation, check out the newsletter here.