Know your audience – Targeted communications for equity compensation

Targeted communication is key if your company wants the best chance to achieve its desired goals when reaching out to employees in relation to their equity compensation opportunities.

That was one of the take-away messages emphasized by Jackson Vaught, Head of Participant Engagement, speaking during our recent webinar on the current state of the employee equity compensation landscape.

Taking the findings of the recently published J.P Morgan Workplace Solutions’ Trends In Equity Compensation: 2024 Report as a starting point, the panel discussion saw multiple speakers focusing on different elements of the existing equity compensation scene, with Jackson homing in on communicating effectively with employees, arising from that having been cited as a significant pain point by survey respondents.

How do you communicate with your employees?

Jackson emphasized that companies need to think about how they can best reach out to their people.

“Communications become even more challenging as we evolve in society. Right now, we live in an information overload age, and you have to bear that in mind. The key question is how to communicate effectively at the most important moments, when people are most likely to be listening,” he said.

It’s important companies look at the types of channels they use and how these hold the attention of their people.

“Email is not always the answer. It can be effective, but there are many other levers you can look to pull. You can use webinars or seminars or look to go with more modern technologies like chatbots or, depending upon your workforce, more traditional approaches like posters and printed materials. I’ve seen all of it work very effectively, based on the profile of the company and the profile of the employee,” he said, highlighting that what works for company A may not be the best option for company B.

Jackson also emphasized the importance of localization.

“You definitely want to make sure that your communication plan has those more localized elements. One way you can look to do that is to take advantage of time zones. So, if you have a global workforce, taking your emails and splitting them into maybe three different buckets rather than one may be a good way to proceed. Send one during AIPAC business hours for your Asia Pacific employees, one during EMEA business hours for European employees, and another during North American business hours. Something simple like that can lead to an uptick in engagement with whatever you’re doing,” he said.

According to Jackson, using technology to tailor your communications can also make a positive difference.

“You want to make sure that you have a technology platform that allows you to make your communications feel personalized. That means putting somebody’s first name in the subject line of an email, or making sure that the links embedded in an email are personalized to that individual and can be accessed by them,” he said.

Communication plans for a multi-generational workforce

Jackson also pointed to the need to be aware that a one-size-fits-all communications strategy may not suit when applied to a multi-generational workforce.

“Different generations communicate in different ways, just like people in different geographies communicate in different ways. I’m a Millennial. I don’t want you to call me. I want you to email me, and I’m probably not the only Millennial who feels that way. But for older generations, they want a phone call. They want to interact with a human voice. Having a strategy that adapts to those generational trends is really important,” he said.

As well as leveraging different tools, it is sometimes beneficial to customize the message when targeting different age profiles.

“It can make sense to emphasize different aspects of why you have equity compensation in the first place. For someone who’s younger and just starting out in their career, that might mean doubling down on the fact that you use equity as a retention strategy. That can really resonate with someone under the age of 35. On the other hand, if you’re communicating with someone older and who is focused on their retirement plan, that is the point you should be emphasizing in your key messaging when talking to them about taking advantage of their plan,” Jackson said.

He added that it is also important to help employees become aware of changes in the regulatory environment.

“Regulation in this space has changed a lot in the last 10 to 20, years, even in the last few years. That means older people who may have had equity longer may not be aware of the recent changes in our industry. That being the case, making sure that that information is communicated directly to participants who may not be used to how things are now is incredibly important,” Jackson said.

Want to learn more?

To hear all of Jackson’s comments and those of the other panellists, access the on-demand webinar here.

What next?

Workplace Solutions provides businesses of all sizes with an all-in-one equity compensation management solution, including employee communications and education supports. We handle all equity award administration so you have more time to focus on your company’s journey. Get in touch today to find out how we can assist you.