Employee share plans offer a valuable opportunity for participants to become owners in the company they work for and share in the company's successes while building their own financial wealth. Effective communication of your plan is critical, and the strategic timing of these communications is key to delivering the value of your plan to maximise employee engagement.
A strategic communication plan allows employees to appreciate the value of the plan, become educated and informed, and gain a greater understanding of what the plan is, how it works, and when to act.
But when is the right time to communicate and promote your plan? While the real answer is always, here are some key moments to prioritise your communication efforts:
Recruitment and new hire onboarding
To attract top talent, position your share plan as a competitive benefit during your recruitment process. As part of the new hire onboarding process, you'll want to highlight your plan as a key benefit and include material conveying important information and how to join.
Offer periods
Sending communications in advance of the enrollment periods helps to create awareness and builds anticipation. Communications should also frequently occur during the offer period and should include detailed information highlighting the benefits of joining the share plan, key dates, share plan features, and clear directions on how to enroll.
Grant and vesting
Grant and vesting moments are critical times to promote your share plan because they directly demonstrate the tangible benefits of participation.
- Grant: This is when employees are initially awarded shares, rights or options. This is a powerful moment to remind employees about the long-term potential of the plan and how their continued contribution directly links to their future ownership in the company. It reinforces the idea that they are now part-owners, with a vested interest in the company's performance.
- Vesting: This is when employees gain full ownership of their awarded shares, rights or options. This is a prime opportunity to showcase the real value of the plan, drawing attention to the wealth-building potential and the direct link between their efforts and the equity they now own.
Dividend Payments
When the company decides to pay dividends to shareholders, this is an excellent opportunity to promote the benefits of your share plan. Employee participants who hold shares will directly benefit from these dividend payments, providing a tangible and immediate demonstration of the plan's value. Highlight how their ownership translates into real financial returns, reinforcing the attractiveness of being a shareholder.
Promotions and new roles
A promotion or a move into a new role is a significant career milestone. This is a prime moment to reinforce an employee's growing impact on the company and a reminder of the benefits of participating in a share plan.
By leveraging these key moments, you can ensure your employee share plan is consistently top of mind, clearly understood, and valued by your employees.