Applying Advertising Principles to Compensation & Benefits Communication

Frank Giancola has a knack for finding underserved topics in total rewards management.  And when he does, lucky for the rest of us, he goes after them.  The result is a number of well-researched and well-written articles covering the "missing links" in compensation and benefits literature.  (See also my previous posting covering his article on employee sabbaticals.)

In an article in the current issue of Compensation & Benefits Review (sorry - the article is only available to paid subscribers) titled "Using Advertising Principles to Sell Total Rewards", Frank reveals and helps us apply the principles of consumer advertising to employee communications in compensation and benefits.  Among the helpful information included in the article are these guidelines on how to execute a total rewards marketing strategy:

Offer a benefit as well as a product attribute

Frank zeroes in on a mistake that many of us are prone to make when we communicate to employees about compensation and benefits:  we focus too much on the program attributes rather than the benefits that the employee will experience.  To illustrate this, the article states:

For example, an advertised feature of target date mutual funds in a 401(k) plan is automatic investment selection.  The underlying benefit is the peace of mind and leisure time that comes with turning over investment selection and management to professionals.

Appeal to the mind and heart

Research confirms the wisdom of appealing to employee emotions, as Frank illustrates with the following quote:

When applied to HR programs, messages should be personal.  For example, when encouraging savings plan participation, include the thought of providing for children's education; for accidental life insurance, lightening survivors' financial burden; and for skill development, realizing their full potential.

Make strategy clear and easy to use

The article makes the point -- and many of us already know this -- that everyone seems to have a different definition of what is entailed by "rewards", and this results in a confusing message to employees.  Frank advocates abandoning that term in favor of more specific program descriptions:

Strategists should avoid the direct use of the term rewards.  Instead, promote specific programs (tuition reimbursement), categories (career development) and themes (advancement).

Comments

[Matt Johnson]

I like the idea of taking practices that work in other industries or markets and applying them to the field of Human Resources and compensation/benefits. I've been researching the application of software design principals around "simplicity" and how those might be applied to compensation design. I think that we, as compensation professionals, can get caught up in our own language and processes and sometimes forget how the plans we design will impact the employee. Is the plan communication designed to use plain and easily understood language? Is the plan designed in a way that makes "sense" and has a level of transparency to gain the employee's confidence? I'm particularly impressed with a book published by 37signals called "Getting Real". There are some real gems of insight that they've developed in their business that could be applied to compensation design and plan communication.

Good article Ann! As always, I enjoy reading your posts.