The number of employees participating in retailer Asda’s employee share plan has risen by 45% in five years to the point where 38,100 employees were enrolled in the scheme in August 2015. The rise is down to Asda adopting a strategy of ‘total engagement’, with ‘regular, tailored clear communication’ with employees, according to the scheme provider, Computershare.
Before designing publicity material for the share plans, Asda carried out face-to-face research with a broad section of Asda ‘colleagues’ to test their understanding of the plan and the effectiveness of existing communication. One of the clear messages from this work was that employees had a strong affinity with their particular part of the company, for example, head office, stores or warehouses, and wanted to see things that were familiar and relevant to them in any communications around the share scheme. Staff also reported that they frequently make decisions based on peer endorsements, so Asda used real-life examples and anecdotes in the share plan marketing.
The retailer provides an online ‘savings calculator’ for staff which helps them to experiment with different contribution levels and see how they affected their potential savings. It also created a dedicated ‘one-stop-multimedia shop’ for information about the plan on their employee internet site, including an enrolment video, an electronic copy of invitation material, FAQs and the interactive ‘savings calculator’. Nevertheless, the diversity of the company’s workforce meant it did not rely on electronic communications alone, and poster and teaser campaigns, such as a Christmas themed postcard sent to home addresses, also helped get the message across. Asda offered its first employee share scheme over 30 years ago.
Simon Bell, senior manager – reward at Asda, said:
‘The advantages of share plans are clearer than ever: reduced absence, fewer leavers, increased working hours and more job satisfaction, as well as tax-free saving and investment for our colleagues. The commitment and hard work of colleagues is fundamental to our achievements, and that means looking after them as part of the Asda family, rewarding them in as many ways as possible and encouraging them to feel they have a direct stake in the success of the business.’