The Internet and cell phones (now smartphones) have completely changed the way the world communicates. It hasn’t been a slow process; the evolution is occurring at lightning speed. What was “new” a few years ago is now mainstream; what’s coming down the pike will soon be the norm. If you’re with the camp of stock plan professionals that have been using the same modes and strategies to communicate with participants for a while now (let’s say more than a couple of years – and I’d guess there are many of us in this camp), it’s time to rethink the tools and resources available. In today’s blog I share a few things to consider in getting off the dinosaur and focusing on emerging ways to communicate with participants.

A New Era Underway

The modes of communication are changing…rapidly. Long emails, newsletters, static intranet sites and hard copy mailings are losing their luster in the shiny new world of communication. What’s in? Video, blogs, podcasts, Google “hangouts”, mobile friendly apps and social media, for starters. Of all of these, the use of video is my prediction for the next king of communication tools. With the birth of YouTube, anyone with a smartphone, tablet or webcam can create and distribute a video. So if you’re thinking “big budget” when it comes to video, think again. There are a range of possibilities – from done-for-you video service firms to do-it-yourself and host/access on sites like YouTube or Google Plus. With the array of mobile devices now in our hands, video is also accessible on the fly, allowing you to engage with participants around the clock. As with any mode of communication, you’ll want to get buy-in from other key decision makers (legal for starters) before you start creating videos and distributing them. The take away here is that it’s much easier than you think, and will show participants that you’re ready to engage in modern fashion,on their terms. There was a fantastic session at our recent 21st Annual Conference (“Stock Compensation Goes Hollywood”) on using video for stock plan communications – if this has perked your interest, I highly recommend accessing the session materials (free for conference attendees) and audio (available for purchase).

How Well Do You Know Your Participants?

Get to know your audience and expand your communication vehicles. Communication is not a one size fits all approach, nor is it a one mode per generation concept. It’s short-sighted to think that employees over 55 won’t be receptive to social media (in fact, 2013 surveys show that 60%+ of 50-64 year olds are active on social media). Likewise, it’s equally limiting to expect that your 20-something population will only want to receive communications via social media. The fact is, there are distinct patterns of communication emerging. So much depends on age, location, culture and other factors. One mistake communication “senders” can make is to deliver content in their own preferred method of communicating. This may not work for the “receiver.” If you have multiple generations in your stock plan population, you may want to consider a quick survey to identify preferred methods of communication. Additionally, it’s wise to consult with contacts in non-U.S. jurisdictions to evaluate preferred modes along with cultural considerations. The bottom line? Consider adopting a multi-mode approach to delivering your equity compensation content to participants.

Broaden the Content Horizon

When crafting communications, think in terms of “benefits,” in addition to features. Features are great, but a list of them in a communication doesn’t always answer the question in participant minds: “What’s in it for me?” Let’s face it – we’re living in the era of “me,” and employees want to know what they are going to gain at any given point in time. When highlighting the “features” of various plans, awards or programs, try to also list the benefits. A simple way that I like to think about benefits? A benefit follows the phrase “…so you can…”. For example:

Join the new ABC Company ESPP Plan! The plan offers:

Simply adding in the benefit behind the feature can give the employee answers to questions they may have about why it’s a good thing for them to be involved in these programs. If you tweak the language to incorporate the feature and the benefit, it may look like this:

I’m not a lawyer, so please do check with your legal advisers about this approach. At minimum you’ll want to make sure that you aren’t selling participants on an investment decision (so note that the benefits I’m talking about are not “financial” reward related or promises about future gains).

It’s time to move into the next era of communication. With so many possibilities, it’s an exciting time and a great opportunity to really get in touch with your participants on a whole new level.

-Jennifer