Why you need financial experts writing your share plan communications

Effective share plan communications are essential for engaging employees and making sure they understand the details, benefits and risks of their share plans.

But writing these communications requires a deep understanding of both the financial aspects and the regulatory environment. Too often we’ve seen communications written by marketing or creative agencies, or issuers’ own internal communications teams, which fall short of the mark.

Here are the key reasons why financial experts should be at the helm of writing your share plan communications.

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1. Clarity of explanation

Share plan communications need to be super easy to understand, as your audience will include people who’ve never invested before, and aren't familiar with financial topics.

This is how you make plans inclusive and give everyone a fair chance of making an informed decision. Plain English is key.

But explaining something in a simple way to a novice requires a thorough understanding of the topic. That's why you need an expert who can take the complicated details and turn them into powerful communications that everyone can grasp.

2. Accuracy

Share plans are deceptively complex. If you're not a share plans expert, you're fairly likely to make technical errors in your communications.

For example, understanding how currency movements affect your options at the end of a Save As You Earn (SAYE) plan, or how tax savings work on a Share Incentive Plan (SIP) if you're on the cusp of two income tax bands, requires detailed knowledge.

Accurate information is crucial to make sure employees fully understand their options and the implications of their choices.

3. Compliance

Share plan communications are generally exempt from regulations around financial promotions. But it's still crucial to make your communications fair, clear, and not misleading, and give a balanced view of both benefits and risks. Issuers have a duty of care to their employees.

Nowadays many issuers want to include financial education elements in their communications, such as explaining how to mitigate capital gains tax at the end of a SAYE plan using ISAs. This can easily venture into the territory of tax advice or a financial promotion.

An expert is needed to navigate these complexities and make sure your communications don't mislead your employees – or get you into trouble with regulators.

4. Tailored messaging

An expert can also help tailor your messaging to different segments of your workforce, making sure all employees, regardless of their financial knowledge, understand and appreciate the benefits of the share plan.

Tailored messaging helps increase engagement and participation rates, as employees feel the communication speaks directly to them and their needs.

5. Long-term engagement

Effective share plan communications don’t stop when someone signs up. Regular, informative updates are needed to keep employees engaged and thinking like shareholders.

Financial experts can provide the right information at the right time, helping employees understand share price movements, dividends, and voting at the AGM. This ongoing communication helps deepen their connection to the company and reinforces their role as shareholders.

Why choose RewardPro?

At RewardPro, we’ve spent almost our entire careers in financial services content.

Ben Brettell, our Content Director, led the content and communications team at the UK’s largest investment broker, including overseeing equity research and the marketing of ISAs and pensions. He also ran financial education programmes for clients.

Tom Gwinnell, our Client Director, is a share plans expert who has worked on more than 100 share plan campaigns for FTSE 100 and FTSE 250 listed clients, understanding the ins and outs of every type of plan.

All this means we’re perfectly placed to communicate your share plan in an easy-to-understand yet compliant way, delivering the best outcomes for your employees. Let us help you navigate the complexities of share plan communications and make sure your employees are well-informed and engaged.