Share plan communications: are you making these surprisingly common mistakes?

Effective communication is crucial for the success of your share plan.

But unfortunately, many companies fall into common traps, undermining their efforts to engage employees and drive participation.

Whether it’s the use of jargon, the failure to provide education, or going silent outside of invitation windows, these missteps can have significant consequences.

Here are five common mistakes in share plan communications and how to fix them.

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1. Writing like a bank or a lawyer

Share plan communications are often riddled with jargon and dense, impenetrable language. Sometimes it seems as though they're written in another language entirely! It's crucial to write in plain English to make sure everyone can understand what you’re offering them.

This approach also promotes inclusivity. If the only people who can understand your communications are those who already have financial or investment experience, you’re going to alienate the very people who would benefit most from the plan.

Imagine someone who has never invested before, perhaps nobody in their family or circle of friends has either. If you send them a letter or brochure full of jargon, they’re instantly going to think this opportunity isn't meant for them.

Straightforward, plain English communications make share plans accessible to all, boosting engagement and take-up rates.

2. Using glossaries

You might think you’re being helpful by including a glossary to explain the more complicated terms you use.

But glossaries often serve as a sticking plaster for communications that are overloaded with jargon. If you explain things in clear, everyday language from the start, you won't need a glossary. For instance, instead of saying ‘exercise your option’ in your brochure or microsite, and then explaining it in the glossary, why not say ’use your money to buy shares when the plan ends’? This way, your reader understands it right away, without having to refer to a separate section for an explanation.

When you ask readers to refer to a glossary, you're requiring them to do extra work. This additional step can be a significant turn-off, and it’s a barrier to engagement and interest.‍

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3. Taking a one-size-fits-all approach to comms

The phrase ‘one size fits all’ is misleading. When it comes to clothing, it rarely fits anyone perfectly and is the wrong size for most people. The same principle applies to communications. When you adopt a one-size-fits-all approach, you fail to capture your audience's diverse needs and preferences.

Better results come from segmenting your audience and tailoring your communications. For example, last year we designed and implemented a segmentation model for one of our larger clients. They had employees who had never engaged with share plans and sceptical detractors who had been negatively impacted by share price falls in the past.

By tailoring our messaging to different groups, we saw remarkable results: 19% of previously unengaged employees and 16% of detractors chose to join this year’s share plan. This shows the effectiveness of a personalised approach, making sure every employee feels seen and understood.

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‍4. Failing to educate

You can have the best-written, most beautifully designed communications, but if you fail to provide broader financial context and education, you're falling short.

Issuers have a duty of care to educate first-time investors about essential concepts like risk and diversification. Without this foundational knowledge, employees might not fully understand the implications of their investments.

More specifically, it's never been more important to explain how capital gains tax works and ways to mitigate it. If you don't, SAYE participants could face unpleasant surprises when their plans mature. By providing comprehensive education, you make sure all participants are well-informed and prepared, which fosters trust and long-term engagement.‍

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5. Going quiet outside invitation windows 

The main goal of share plans is to get your employees thinking like shareholders. This means you need to treat them like shareholders too. Your invitation communications might be excellent, but once you've engaged your employees enough for them to join the plan, that's not the time to go quiet. It's an opportunity to engage them more deeply with the company and its prospects.

Keep the conversation going by explaining why the share price has moved, educating them about dividends, and encouraging them to vote at your AGM. By maintaining regular, informative communication, you reinforce their role as shareholders and deepen their connection to the company. If you don’t, you’re missing out on a vital opportunity to build a more engaged and informed workforce.

Need help with your share plan communications?

At RewardPro, we specialise in transforming complex share plan information into clear, engaging communications.  

Whether you need help simplifying your language, tailoring messages to different employee segments, or providing essential financial education, we’re here to support you. Let’s chat about how we can enhance your share plan communications and drive better engagement and participation.

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