Best practices in share plan communications: 8 key takeaways

We're excited to share some key takeaways from our recent experience at the ProShare Celebrating Excellence event.

It was a great opportunity for us to join industry leaders in discussing the latest trends and best practices in employee share ownership. And it’s always good to spend the day with a bunch of people who share the same passion for share plans as we do!

We’re often asked about what constitutes ‘best practice’ in share plan comms. It's a great question, because getting your communication strategy right can make a significant difference in how employees engage with and understand their share plans.

We believe in taking a people-first approach to share plan communications. That means making sure your employees not only understand the benefits but also feel empowered to make informed decisions about their financial future.

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Takeaway #1 - high ROI on communication investment

At the ProShare event, we heard near-unanimous agreement that the return for investing in communications is high.

But convincing internal stakeholders to allocate budget for communications can still be challenging. Demonstrating the tangible benefits of effective communication, in terms of increased employee engagement and participation, can be key to securing buy-in from decision-makers.

Takeaway #2 - data-driven approach to engagement

We noted an increased focus on data-driven insights. Issuers are using data to identify demographics with low engagement levels, and to measure the impact of increasing their focus on how plans are communicated.

By analysing employee demographics, preferences, and behaviours, companies can also tailor their communication strategies to target specific audience segments effectively. This data-driven approach lets organisations optimise their communication efforts and maximise engagement.

Takeaway #3 - personalisation for increased engagement

Personalisation is emerging as a powerful tool for increasing engagement. Effective segmentation allows organisations to personalise their communications based on factors such as job role, tenure, and location.

By delivering targeted messages that resonate with each audience segment, companies can enhance employee understanding and participation.

Takeaway #4 - innovation and adaptation

If the main plan types don’t align with your business objectives, innovation is key. We were pleased to see companies are exploring innovative approaches to share plan design and communication to better suit the unique needs of their business and their employees. By thinking outside the box and adapting to changing circumstances, organisations can create share plans that truly align with their strategic goals.

Takeaway #5 - financial education as a necessity

Cuts to the capital gains tax (CGT) allowance underscored the importance of financial education. What was once considered a luxury is now a necessity. Providing employees with access to financial education is essential if they are to avoid sleepwalking into unnecessary tax liabilities. Financial education can really empower employees to make informed decisions, both about their share plans and their broader finances.

Takeaway #6 – the importance of advocacy

Advocacy emerged as a critical success factor for share plan communications. Developing colleague advocacy at every level, from C-suite endorsement to local share plan champions, fosters a culture of engagement and participation.

Takeaway #7 - tailored approach for optimal results

Every company is unique, and a standardised approach to communications is unlikely to yield the best results. Tailoring communication strategies to the specific needs, preferences, and characteristics of your workforce is essential for driving engagement and participation in share plans. And tailoring your channel strategy, including channels beyond email, is vital, especially for engaging non-desk-based workers.

Takeaway #8 - inclusivity through clear communication

Lastly, making sure everyone understands the share plan is essential for true inclusivity. Clear, jargon-free communication and a robust channel strategy are crucial for reaching and engaging all employees, regardless of their role or level of financial literacy.

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To sum up, effective communications are essential for engaging employees and driving participation in share plans.

By adopting a people-first approach, using data-driven insights, personalising communications, fostering advocacy, and embracing innovation, companies can make sure all employees understand the plan, and can make an informed decision about joining.

Ready to enhance your share plan communications? We’d love to chat.