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Category: Internal Communications

How to Communicate About Incentive Plan Results

For many corporate employees, this is bonus season.  In February, when year-end results are being finalized, the buzz builds. Will we make bonus, and by how much?  In March, the anticipation is unmistakable.

Whether the news is good or bad, bonus season gives leaders a spotlight to connect individual performance and business results.  While the architecture of bonus plans vary, most include a performance-related reward with a pay out when the company’s financial results and the individual’s performance meet set criteria.  For example, when Apple missed sales and profit goals for 2016, Tim Cook saw a cut to his performance-based cash incentive.  Don’t worry about Tim. Overall, he still did pretty well.

Whether the news is good or bad, the way you tell the story will impact employee engagement. Let’s look at communication strategies for both scenarios.

When the incentive target is achieved

  • Explain how it works.  The only people who truly understand the bonus system work in Compensation.  Prior to bonus announcement, send out a review of the bonus program with visual examples.  Provide an online bonus calculator.
  • Celebrate.  Good news should never be buried in an email. Create a brief video from the senior leadership team thanking employees for their contributions last year. An authentic thank you is always appreciated.
  • Set expectations for the current year. High performance cultures innovate, collaborate and continuously improve. Now is the time to be talking about 2017 stretch goals and aligning performance and priorities so bonuses are achieved in 2018. Create talking points for managers to cascade.

When the incentive target is missed

  • Explain how it works.  See above. Talk through the plan structure.  If thresholds were not achieved, clarify how that impacted pay outs. Remind employees that the bonus is just one component of a comprehensive rewards package and it’s performance-based. It’s extra pay for exceptional results.
  • Pre-announcement preparations.  Prepare for this like you would for a customer or shareholder meeting.  Compose key messages, draft FAQs and ensure managers are informed and prepared.  Set up a channel for employee questions.
  • Hold town hall meetings.  Where did the company fall short? Talk about it. Listen, answer questions, and discuss priorities and opportunities for 2017.

Proactive communications help connect the dots for team members. Businesses win when everyone knows, understands and lives the company’s values.  Show them their contributions make a difference.

Four Ways to be a Better Communicator in 2017

Successful leaders know that effective communications are a competitive advantage.  As you begin 2017, make a resolution to evaluate the health of your employee communications. Are business goals and actions aligned? Do employees understand priorities and do they have a way to participate and share ideas?

Everyone talks about the importance of communications, but it’s just lip service without an actionable plan.   Here are four ways to commit to better communications in 2017.

1) Map out your communications calendar right now—Begin with a “Welcome to 2017” message. Schedule dates for the entire year now to ensure it remains a priority. Keep the content fresh with a mix of performance results, customer and employee stories, and encouragement.  We all need more of that.

2) Articulate the vision— If a customer asks an employee what your business was about, what would they say? Everyone on your team should use the same headline.  When people can connect their work to big goals, they are more engaged.  Leaders who communicate the vision and values, then put those values into action, see performance climb.

3) Use stories to make an impact—Think back to the most recent story that struck a chord with you.  Was it complicated or overstuffed with facts?  Simple stories make an emotional connection with the audience and hold their attention.  Use your own experiences to make a point.  I recently heard the president of a large hospitality group say that he makes time for fitness daily because “We only get one set of parts and I want mine to last.”  That’s memorable and tells me something interesting about him. Leaders who share a little of themselves in communications are viewed as credible and human.

4) Get visual—Visuals are processed 60,000 times faster than text.  If you rely on email as your primary form of communication, know that there is a better way. In 2016, there were 4.6 billion cell phone users in the world and most phones have video or photo capability. Your team members are viewing or creating visual media every day. Use photos and video as frequently as you use memos. Video is an excellent way to improve message retention, connect with remote workers, and engage senior leadership with teams.  The best part is you don’t have to have a large budget or be an on-camera pro.  If you’re sincere, it will be memorable.

That will get you started.  Need some help in communications planning for 2017?  Get in touch.

Ten Inspiring Movie Quotes about Communications

wizard-of-oz-photoBefore you craft your next message, take a look at these and enjoy.

  1. “When you are telling stories, have a point. It makes it much more interesting for the listener.” Planes, Trains and Automobiles, 1987
  2. “Don’t use seven words when four will do.” Oceans Eleven, 2001
  3. “Learning to listen, that takes a lot of discipline.” Forever Strong, 2008
  4. “Some people without brains do an awful lot of talking.” Wizard of Oz, 1939
  5. “Avoid using the word very because it’s lazy. A man is not very tired, he’s exhausted.  He’s not very sad, he’s morose. Language was invented for one reason, to woo women. And in that endeavor, laziness will never do.” Dead Poet’s Society, 1997
  6. “The Internet’s not written in pencil, Mark. It’s written in ink.” The Social Network, 2010
  7. “Whoever tells the best story, wins.” Amistad, 1997
  8. “You must write your first draft with your heart. You rewrite with your head.  The first key to writing is to write, not to think.”  Finding Forester, 2000
  9. “You never really understand a person until you consider things from his point of view… Until you climb inside of his skin and walk around in it.” To Kill a Mockingbird, 1962
  10. Everybody has to sell a little. You’re selling them this idea of you, you know, you’re sort of saying trust me, I’m, um, credible.” Broadcast News, 1987

Take a look at your Employee Handbook

messy manual

What is the last line in every Employee Handbook?

“Please take some time to familiarize yourself with the contents and policies of our Employee Handbook and feel free to contact your HR representative if you have any questions.”

Does that sound familiar? Probably not, because in all honesty, who actually reads through their entire Employee Handbook?

Most of the time your Employee Handbook is distributed, put in a drawer and then thrown away when the next handbook is distributed.  They are often an afterthought to both employees and employers that are only brought out in when someone wants to check company policies.

I recently read an article about one such extreme situation.  The company, Quicken Loans, was summoned to the National Labor Relations Board offices this past December.  The case against them alleged that the Detroit-based company had violated the First Amendment rights of employees and their protections under the National Labor Relations Act to discuss salary and benefits information.  The allegation claimed that company policies in their Employee Handbook restricted discussions to the formation of a labor union.

Whether or not Quicken Loans is found in violation, this is a perfect case of why it is important to know what is in your Employee Handbook and why companies need to periodically update and revise it.  Attorney Daniel Schudroff made a great comparison when he said “It’s like taking your car to the shop every six months for a checkup, the preventative maintenance could save an employer a costly event.”

Do you need support updating your Employee Handbook or would you like to give the design a refresh? We can help you with that.  Visit our website www.insight-communication.com or email me at   ben.clayton@insight-communication.com.

Three Tips to Take the Sting Out of Benefits Communications

Three Tips to Take the Sting Out of Benefits Communications

It’s Open Enrollment season and that sound you’re hearing is not a cheery holiday carol, but the collective shriek of millions who are reviewing their medical benefit costs for 2016.

According to the Healthcare Cost Institute, a non-partisan non-profit entity, health care spending among those with employer-sponsored insurance increased 10 % from 2011-2014. The Milliman Medical Index (MMI) calculates the annual cost of healthcare for a typical family of four with employer-provided PPO insurance coverage. According to Milliman, this year’s Index is $24,671, an increase of 6.3% over 2014. Employers still pay the majority, but as cost sharing for medical benefits continues to climb, employees may be paying over 40% of the tab.

For internal communicators, there is no way to spin this. Businesses must manage their benefits costs, and since medical service is becoming more expensive, cost sharing is the prevailing technique to manage the company budget. But there is a way to make it less painful for employees and the business. There are 11 months leading up to Open Enrollment. Each month is an opportunity to inform and educate about the value of your company’s benefit plan. The good news is you don’t have to spend a lot of money to do it.

Start with a survey—Let’s get really basic: Do your employees know what benefits you offer? Design a simple survey (easy to develop on Google or through providers like Survey Monkey). Determine the awareness of all your benefits. Include Employee Assistance Programs, discounted purchase programs and retirement plans. Anything and everything. You’ll have a good foundation for the second step of this plan: education.

Develop a 12-month communication plan—Many companies cover all their benefits communications once a year to meet compliance requirements. Think about this from the employee’s perspective. No information for 11 months, then lots of information when decisions must be made immediately. It can be overwhelming. Use multiple channels to promote your benefits programs: news items, Lunch and Learns, posters. Consider highlighting one personal employee story every month. A consistent flow of communications about your benefits will increase understanding and engagement.

Be transparent—No one likes higher fees. However, if employees understand what’s driving cost increases, when the prices go up they’ll be more prepared. The time to share this information is mid-year, so the foundation is prepared for Open Enrollment. Telling that story during Open Enrollment is ineffective because your employees will be focused on their out of pocket costs. Get out in front of the issue.

Want more benefits communications ideas? Let connect.