five techniques to turbocharge your espp education · > post materials only to the company...

FIVE TECHNIQUES TO TURBOCHARGE YOUR ESPP EDUCATION

TURBOCHARGE YOUR ESPP EDUCATION

Why do you want to promote your plan?

Participation in your employee stock purchase plan is crucial. Not only does participation mean your employees are vested in

your company, but it can also attract and retain workforce talent, boosting your employee base with nothing but the best talent

out there. But what does participation in your employee stock purchase plan look like today? If the answer is anything short of

great, it might be time to reassess, fine-tune and even turbocharge your ESSP Education!

But where do you start? Well, to start you should consider a few basic

questions (below) to help you identify your purpose, message and objective.

You’ll need to determine what you’re trying to accomplish with your education

initiative. For instance, your focus might be employee engagement.

Offering an ESPP can lead to a better, more engaged, more valuable

workforce. Identify the reason(s) you want to promote your plan and

incorporate them into your messaging.

Studies show that employees who participate in an ESPP:

Work longer hours

Are absent less frequently

Are less likely to quit

Express greater job satisfaction


What do you want to communicate?

You’ll want to easily engage your employees through regular communications that are relevant and timely. In providing

multiple touches of communication, and at the right time, your employees will get a better understanding of the value in

which your equity plan can bring to them. For example, wait to provide detailed information about the tax implications

to participating in the plan until the purchase date and/or at year end, when the information is most relevant.

You’ll also want to identify the questions people

are repeatedly bringing to your department

about your program. These are ideal subjects

to craft communications around. For every

person that asks a question, there are likely

several others that are wondering the same

thing or who may ask about it later.

Some of the most common terms, topics

and themes you’ll want to covered in your

messaging can include the following:

>> Basics>of>an>ESPP

>> Terminology

— Discount, offering period, lookback, etc.

>> Purchase>lifecycle>of>an>ESPP>

from>enrollment>to>purchase

— Provide examples with hypothetical,

but relatable figures

>> Tax>implications

— 423(b) Plan or Non-423(b) Plan

— Risks and disclaimers

>> Plan>prospectus>and>plan>documentation

— Where to find them and why it’s

important to review them

>> Action>timeline>for>employees

— Tables that provide offering periods,

enrollment periods, contribution periods,

purchase date and any other significant date

— Deadline reminders (When to enroll in the

plan, make changes, or cancel participation)

>> ESPP>enrollment>versus>open>enrollment

— Differences between the two and

what benefits each can offer

> Aftermath>of>purchase

— What happened and what does

that mean to your participants

> Process

— How to enroll, make changes, or cancel

participation — vendor website or paper form

— Where to access shares and how to sell

>> Details>of>purchase

— What price was used for purchasing

and when shares will be posted

to employee accounts


What is your communications objective?

You’ll need to think about what the goals and objectives of your communication plan will be. There is a significant difference

between communications that create awareness and those that impart information. However both are equally important and

you’ll need to deliver both in order for your plan to operate at peak performance.

A recent Gallup poll shows that over 85% of large employers in the U.S. offer

some sort of wellness program. Yet, only 60% of workers are even aware of

the existence of such programs within the organization. Of that 60% that

are aware, only 40% actually make use of their wellness benefits. This study

makes it clear that simply offering an employee benefit program doesn’t

guarantee participation in it. Unless the program is combined with effective

strategies for increasing awareness and understanding of the program, it will

likely fail to yield expected results. Out of sight, is out of mind!

Creating awareness is the first step. Only once your employees are aware,

can you start to impart the information employees need to make an informed

decision. Keep in mind these communications should highlight the key items

listed above, while pointing employees to the plan’s documentation for more

in-depth explanation.


Best Practice #1 – Easily Engage your Employees through Digital Media

In today’s world the reality is that your employee base includes multiple generations. From baby boomers to millennials,

it’s your job to create a communication campaign that reaches all your employees regardless of the potential generational gap.

For years, companies spent countless hours trying to understand how to communicate in a single way that would reach several

different age groups. And, as it turns out every age group consumes digital media.

According to a study conducted by Pew Research

Center, 81% of Americans owned a smartphone

in 2019, up from 35% in 2011. But most important

here is that people in the typical working ages

of 18-64 are all heavy owners of smartphones.

is that more than half of all internet traffic

is consumed on mobile devices. So what

does this mean? It means that using digital

channels to communicate to your employees is

a surefire way to get your program noticed.

Based on the data above, you know digital

media will work. But how can you take full

advantage of digital media to get the best

results? Digital is great for educating your

employees and providing necessary information

to help them understand the value of your plan.

Because digital media needs to be accessed (via

computer or mobile device) it requires active

effort by your employees. This effort means

employees are committed to taking the time

to consume the information you provide.

Here are some other digital do’s and don’ts:

DO

> Create both a web page and a PDF for each piece

of collateral. PDFs are great for printing. Web

pages are great for reading on your mobile device.

> Use video

> Host all materials on an external

web site or microsite

> Conduct webinars (a form of live

presentation, but still digital)

DON’T

> Post materials only to the company internet.

Ages 18-29

Ages 30-49

Ages 50-64

Ages 65+

96%

92%

79%

53%

Smartphone Ownership in 2019*

And the statistics don’t stop there! 88% of

all Americans use the internet, and 73% have

broadband at home. Particularly interesting

*Pew Research Center


Best Practice #2 – Build Awareness Through Traditional Communication Channels

While it’s evident that most employees will consume information digitally there will still be a handful of employees that prefer

the more traditional communication channels. That said, you will want to consider additional, more traditional, forms of

communication to attract this base of employees.

For instance, consider sending a postcard to every employee’s home

that highlights key program benefits. Include a call to action that directs

employees to a website to get more information. Advancements in printing

technology have significantly lowered printing costs and you can reduce

mailing costs by simply using third-class or bulk mail rates.

Posters and tent cards can be in the break area or lunchroom and provides

for an excellent and inexpensive way to create awareness of your plan and

education your employees. Much like the postcards, highlighting key benefits

with a call to action that directs employees to a web site for more information

can help increase participation.

Other traditional communications techniques to consider include holding

live meetings. These are still one of the best ways to share information

with employees as they allow for in person Q&A and the enthusiasm of the

presenter can incite excitement with the audience to a) want to learn more

about the plan and b) sign up in real time.

Traditional media is important and will always remain relevant in the

world of business. More than half of all newspapers are still print only.

And, more importantly, 72% of people still trust things they read in the

paper or see/hear on television and radio.


Best Practice #3 — Strengthen Your Stakeholder with Connections with

Additional Off-site Access to Plan Information

Have an intranet site? If so, this is also a great way to share information with employees in a secure environment.

But there’s a downside; employees can usually only access the intranet while at work, either through company provided

individual computers or, in some cases, at terminals or kiosks set up in breakrooms or HR offices.

Making decisions on benefits is not an easy thing. Most people don’t

understand how stocks work in general, much less the complexities of an

ESPP. You will want to consider offering access to information on your plan

outside the office.

Offering an internet site or a microsite where all plan documentation and

education material is housed (in one place) allows employees to make

decisions at their convenience and in the comfort of their own home. Since

participation requires a contribution of their own paycheck you’ll want to

be considerate of the fact that employees will want, and likely need, time

to consider and reflect, and even discuss with a spouse, a partner or some

other family member what they can afford and what is best for their personal

situation. You’ll be strengthening your stakeholder connections while

providing the benefit of ease and comfort to your employees.

You can password-protect the site if you feel the information on it is sensitive.

If you’re not set up to manage a password-protected system for the site,

another option is to block indexing of the site by Google and other search

engines. What this means is that search engine bots will never scan your site

and therefore never list it under any search results. The only way to get to

your site is to know the URL.


Best Practice #4 — Think like a Marketer

An ESPP can be a great benefit to employees. Not only are you offering employees ownership of the company, but you’re

offering the potential of additional income (through discounted share purchase price or company match) to your employees as

well. And with research showing that participation in an ESPP is directly correlated to happier, more engaged employee, you

benefit from an excited, thriving workforce.

Your ESPP communications need to match that

excitement. Primarily focusing on the facts of

the plan — what it is, how it works and how to

enroll — are important, but you need to convey

the benefits to really make an impact. Position

your communications so that employees get an

understanding of the value your plan offers, along

with benefits of signing up.

So put your marketing cap on and start thinking

like a marketer to get the best results! Take a look

at the quick tips below to help your start.

Focus on the benefits.

A marketer’s first question is always, what is

the benefit to the customer? In this case, your

customer is your employee base. Once you know

the benefits (e.g., discount, company match,

lookback, etc.), they become the centerpiece

of the communications. Leading with benefits

engages your audience on a personal level.

Break communications up into smaller parts.

Some companies produce 16 or even 32-page

brochures that cover every single aspect of the

company’s ESPP. They are thorough, and they are

daunting. Instead, try a series of 1-page documents

that each cover a single aspect of the plan. Topics

can include benefits of participation, how to enroll,

and how the taxes work, to name a few.

Word of mouth is the best form of marketing.

Find employees who participate in your plan

and get them to provide first hand testimonials.

Record them on video or other form of

communication and make these testimonials

available to your employees.

Use interactive marketing elements.

Develop a quiz or survey to build interest and

create a buzz. Ask questions specific to the ESPP

and offer raffle prize drawings among those who

participate.

Time communications around big events.

Think about big events you may have coming

up and tailor communications in line with those

events. Have a long offering period? Launch

communications just after the purchase date

with topics such as number of employees

who participated and how many shares were

purchased. Create a sense of excitement and a bit

of anxiety around ‘missing-out’ among your non-

participants. Then repeat that communication just

before your next enrollment period.


Best Practice #5 — Know your audience and target your communications for a bullseye!

Knowing your audience is a huge factor when it comes to the success of your communications. Consider the make-up of your

eligible employees and target your communications appropriately. It’s likely you have a wide range of employee demographics.

So how will you deliver a message that appeals to the entire audience?

The good news is you don’t have to get so granular. You won’t need to create

multiple sets of collateral for each employee. However, there are some things

you should do to get the most out of your communications:

Your audience is 100% human.

So be sure to include pictures of people in your collateral to humanize and

soften your communications making them more relatable to your audience.

And not just any pictures of people but images that look like your audience.

Speak their language.

It may seem so obvious, but when you translate your materials into the native

languages of your employees, you great increase their responsiveness.

Know your corporate culture.

Are your employees generally older? Younger? College educated? Savvy with

stocks and taxes? If a large percentage of employees fit a certain outline, lean

into that with how you communicate to them.

Ready to start your own communication campaign?

You don’t have to spend big to make a big impression with your

ESPP education initiatives. Simply follow some of the easy-

to-adopt, low or no cost recommendations in this paper and

your program will have a better chance of being successful.

Computershare offers a wide range of communication solutions

to help you educate your employees on your employee

plans, how they work, and why they are beneficial.

To>learn>more>or>if>you’d>like>to>speak>to>one>of>our>employee>

plan>experts,>visit>www.computershare.com/EmployeePlans

Copyright © 2019 Computershare Limited. All rights reserved. CPM21962 DEC2019

http://www.computershare.com/EmployeePlans

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