Step 2: Incentive Compensation, Unprecedented Times Require Unprecedented Actions, Building a Foundation of Trust and Understanding
Step 2: Communication must be the foundation of any effort
Oil-producing countries are locked in a historic battle over the control of supply and prices. Stock markets are swinging erratically and dramatically while the entire globe is in some state of human lockdown. These are confusing times for everyone. Incentive plans and equity compensation can be confusing pay elements for anyone to understand. In the best of times, companies often struggle to find the time and resources to communicate their incentive programs properly. In the worst of times, communication can become a distant afterthought. The companies who successfully navigate these unchartered waters will invariably be those who communicate often and well.
The basics are simple. Provide clear, consistent messaging about the intent of each plan, of any changes, and the impact on any employees. This simplicity makes the communication process seem more manageable and faster than it is. Communicating is easy. Communicating well is a different story.
First, define or clarify the intent of your programs. This process will drive the intention of your communication effort. With your intent clearly defined, you must develop your required communication timeline. Do not be surprised if you find there isn’t enough time to do everything you need. There is never enough time to do it all.
With your intent clearly defined, you can establish the consequences of doing nothing and the impact of doing something. In times of crisis, it is essential to focus on the following four principles:
Messaging – The word, images, and tone you use will set the foundation for your success. Utilize every resource you have available. Bring your Marketing and Communications team into the mix early and let them guide the way. Explain what you want people to hear and let them craft the language and graphics.
Mediums – People have evolved to communicate face to face. In today’s world, this may mean far more time spent on video than you had initially envisioned as part of your career. Email, presentations, and web addresses are also common and necessary. Interactive modeling tools are a magic ingredient when asking people to choose from several options. Finance team members are especially adept at modeling in spreadsheets. Get their help early and make changes as needed. Finally, don’t miss out on the ease of creating videos (there are tons of tools to help).
Audiences – All employees are not created alike. Respect the sophistication, history, and expertise of each group. Monolithic communications are an excellent place to start, but segmentation is where you will find the most significant impact.
Measurement – You need to know that your communications are achieving their objectives. It is unlikely you will have the time or bandwidth for polls and surveys. An equally effective method is creating a stakeholder group that is representative of your audience(s). Even groups of 5-10 people can help you measure and improve messaging in a real-time environment.
No one has ever finished a project like this and stated that they had too much communication. It is also true that no one has ever said they started the communication process too early. Putting together your team and planning immediately will allow executing when the time is upon you successfully.
The management consultancy firm FutureSense specializes in the creation and maintenance of human capital competence. The business can assist you in managing your personnel through coaching and mentoring. For more information, visit FutureSense.com.
