The NASPP Blog

It feels great to be part of the NASPP, and I appreciate the warm welcome I’ve received. For my inaugural blog I decided to focus on something I’m particularly passionate about: employee communications. Those who know me know that this is a soapbox I can often be found standing atop, waving my arms.

The Need to Communicate
The need to communicate with employees about stock plans knows no boundaries. Whether you are a public or private company, you have a large or small employee population, or you simply service those types of companies, employee communication is a core and critical aspect of offering and administering stock plan benefits. It is also an area that often is downgraded in priority when other demands rise. Year-end is just around the corner, and many companies are preparing to send out communications that are legally required, such as those mandated by IRC Section 6039. What about the communications that are not required by a statute? Is there a plan in place to carry out a voluntary long-term communication strategy?

Crafting a Communication Strategy
I’ve thought of a few areas to begin in focusing on a long-term communications plan:

• Choose your mediums, and use multiple! Don’t limit yourself to just one mode of communication with employees, such as email. Communication research shows that people receive and process information differently. Sometimes a visual is needed, sometimes in-person contact is necessary. Ideas for mediums include email, presentations, in-person meetings, FAQs, webcasts, mailers, and social networking sites (Facebook, Twitter).
• Craft a message that repeats itself. One mistake often made in communication efforts is assuming that the message is heard and retained the first time. It often takes several attempts for a message to clearly register. Ensure your communication campaign involves repetition of your core message.
• Don’t forget the value proposition. It’s easy to focus on communicating about the process, whether it is the process for accepting a new grant, accessing a brokerage web site, or other functional “must know.” In your quest to inform participants about how to do something, don’t forget to include why it is important. Your stock plans are only as valuable to your participant as the participant perceives the benefit. Remember that the total value of a grant or award is comprised of both the tangible cash value (e.g. the intrinsic value of a stock option) and intangibles, such as how the employee feels about their grant and worth to the company.
• Think of key events and use them as opportunities. Communication doesn’t have to be a stand-alone event. Think of key events in the stock plan life cycle (new grants, vesting, exercise/release, significant company events such as a merger or major milestone achievement, etc.) and tie your communication efforts into those moments.

Last Thoughts
As you sit down to develop your year-end communication strategy, I challenge you to expand your efforts to include a plan for the entire year. Certainly unforeseen events will arise throughout the year that will require additional communication. The key is to place emphasis on managing participant perception of stock plan benefits by keeping in touch consistently, repetitiously, and using effective mediums. For communication ideas, be sure to stop by our Employee Communications Portal to view sample documents and other tidbits of information. You may also want to attend the “Maximizing Perceived Value of Equity Compensation” session at the 19th Annual NASPP Conference in November.

-Jennifer