The NASPP Blog

What Can the Census Teach Us About Increasing Response Rates?
A couple of weeks ago, I received a notice in the mail from the US Census Bureau telling me that my census form would arrive in about a week. My first thought was “what a ridiculous waste of money” but, on second thought, I wonder if there is a lesson here that also applies to communications we send to employees.

Advance Notices Increase Response Rates

The Census Bureau believes the advance notices will increase the response rate on the census by 6 to 12%. This is a big deal for the census, since they have go door-to-door to follow up on all forms that aren’t returned (aren’t you glad you don’t have to do this for unreturned grant agreements), resulting in a potential savings of $500 million (at a cost of $85 million).*

So I got to thinking–wouldn’t the same strategy work for the forms employees have to return relating to their participation in company stock plans, such as grant agreements, ESPP enrollment forms, tax election forms for awards, participant surveys, Forms W-8 BEN, broker account applications, etc.? Distributing a notice to employees warning them that these forms are coming and require their response can increase the response rate. This strategy works particularly well for company-wide events–e.g., annual grants, vests dates for annual awards, ESPP enrollment–where many employees must act within the same time period.

Multiple Paths of Attack

You have an added advantage–unlike the Census Bureau, you have multiple ways of reaching employees (the Census Bureau is pretty much limited to direct mail, until they send out the foot soldiers). Some of the ways you might notify employees of the forthcoming grant agreements, etc. might include:

• Email
• Letter or postcard mailed to home address
• Letter or postcard distributed at work
• Notices in pay stubs
• Posters displayed around the office
• Notice (maybe even a pop-up) on the company intranet

Generating a Buzz

Not only did the notice get my attention, but it also generated additional press for the census. Both my local papers ran articles about the notices after readers questioned the cost-benefit of them (and now I’ve mentioned it in this blog). In addition to articles like this, Census Bureau reps were featured on various TV news and talk shows.

The advance notices you send out can create the same buzz, especially in the terrarium-like environment of most workplaces. And you can create your own buzz–perhaps you could be interviewed on the company intranet, in an employee blog, or in an employee newsletter (if your company publishes an internal newsletter) about the importance of employees responding.

Getting Others to Spread the Word

In addition to the Census Bureau’s promotional efforts, I’ve noticed a number of other community organizations publicizing the census, including local schools and the city newsletter.  Just like the census, you don’t have to be the only one spreading the word about your company’s stock programs.  Having executives, managers, and even employees’ peers deliver messages about the stock plan can be a very effective strategy.  The session Robyn Shutak, Rachel Murillo, and I conducted at last year’s NASPP Conference, “Leveraging Your ESPP in a Down Market” includes some great ideas of how you can use managers and peers to promote your stock programs in a structured and controlled manner (if you missed it, you can purchase the session audio and materials).

Don’t Forget the Follow-Up

The week after I received my census form, I received a postcard from the Census Bureau with information on how to get help completing the form. Sending a reminder like this can also increase response rates. Consider using a different format for the reminder; for example, if the advance notices were sent by email, send postcards for the reminders.

Here at the NASPP, response rates to the various programs we offer are directly proportional to the number of emails we send about them. We’ve been sending out weekly emails on our 2010 Domestic Stock Plan Design Survey and, when each email goes out, we see an uptick in participation. The same will be true for your stock programs: the more you communicate with employees about participating, the higher your participation rates will be.

* “Letter Sent Before Census Form Saves More Than It Costs,” Kathleen Pender, San Francisco Chronicle, March 12, 2010

Less Than Three Weeks Left to Participate in the Stock Plan Design Survey!
You have less than three weeks left to participate in the NASPP’s 2010 Domestic Stock Plan Design Survey (co-sponsored by Deloitte).  Don’t miss your chance–you have to complete the survey by April 9 to get the results.

18th Annual NASPP Conference
This year’s NASPP Conference will be September 20-23 in Chicago.  Last year’s Conference sold out and we expect even more attendees this year.  Don’t wait to register–early bird discounts are only available until April 15. Don’t count on this date being extended!

NASPP “To Do” List
We have so much going on here at the NASPP that it can be hard to keep track of it all, so I keep an ongoing “to do” list for you here in my blog. 

• Register for the 18th Annual NASPP Conference–don’t wait; the early-bird discount is only available until April 15.
• Complete the 2010 Domestic Stock Plan Design Survey.
• Register for the NASPP’s online Stock Plan Fundamentals program.
• Complete the Compliance-O-Meter quiz on Professional Development.
• Renew your NASPP membership for 2010 (if you aren’t an NASPP member, join today).
• Complete and return your census form (to the US Census Bureau–don’t send it to the NASPP) 

Go Oakland A’s!

– Barbara