Three Simple Guidelines for Your Bonus Plan Communications

It’s bonus plan documentation time! Ensuring effective bonus plan communications is critical to achieving clarity and trust among plan participants. Clear communication eliminates confusion, fosters understanding, and builds appreciation for your plan. Here are three simple guidelines to make your bonus plan communications successful.


Guideline 1: Simplify Your Bonus Plan Communications

When communicating your bonus plan, simplicity is key. Avoid overly complex language in participant-facing materials. While legal documents might require precise jargon, plan participants benefit from concise, straightforward language.

Pro Tip: Use tools like the Flesch Reading Ease Score to evaluate readability. Aim for a score between 60 and 70, or a Flesch-Kincaid Grade Level of 5.0 to 7.0. This ensures clarity for a broader audience.


Guideline 2: Plan Three Key Bonus Plan Communication Events

To effectively communicate changes or details in your bonus plan, schedule at least three events:

  1. Announcement: Share the plan with clarity and excitement.
  2. Details Review: Host a session to explain changes, eligibility, and calculations.
  3. Reminder and Q&A: Provide an opportunity for participants to ask questions and solidify their understanding.

Why Three Events? Communication experts emphasize the “Rule of Three.” It reinforces awareness, comprehension, and appreciation among participants.


Guideline 3: Track, Adjust, and Enhance Your Communications

Leverage feedback and tools to measure the effectiveness of your communications. For instance, analyze participant responses using surveys or engagement metrics. Adjust communication materials and delivery based on feedback to improve understanding.

Remember, clear bonus plan communications foster trust and confidence among participants, ensuring your program’s success.


Use Bonus Plan Communications to Foster Trust

By prioritizing effective bonus plan communications, you can eliminate confusion and build trust among participants. With clear language, structured rollout plans, and active feedback loops, you ensure that participants value and understand the plan.

For further guidance, explore resources like the SHRM Guide on Employee Communications. Need help refining your approach? Contact us at hello@morganhr.com.

About the Author: Neil Morgan

Neil Morgan is the Managing Director of MorganHR, Inc., a leading Human Resources consulting company and software provider. A technology proponent who is also passionate about process simplification, Neil led the creation of SimplyMerit to help leaders take control of and optimize their annual merit, bonus, and equity processes. SimplyMerit now forms the backbone of MorganHR’s Compensation Management solutions.