2014 Sonoco Communication Plan for Review

TotalRewards

Communication Stategy

presented by The Williamson Group Faye Bulloch, Director, Marketing Communications

1

Situation Analysis Background Several factors put employee benefits at a critical juncture today. A slow economy and rising health care costs are squeezing employers’ ability to offer core benefits without sacrificing the bottom line. A sense of entitlement pervades the Canadian workforce, an aging workforce—with its higher incidence of chronic disease—adds upward pressure to the cost of providing health benefits, and union threats seek to disrupt the bottom line.

Given these factors, it comes as no surprise that Sonoco is carefully evaluating their current benefits and is searching for strategies to improve or maintain them without increasing costs. These strategies may be in workers’ best interest, but Sonoco is lacking in the resources to effectively inform employees about the benefits that can keep them healthy, protect them from future health risks, and ensure financial stability for their families. In addition, a sense of urgency exists on the corporate side to encourage employee responsibilty in cost containment.

The solution appears to be hiding in plain sight: improved benefits communication provides a significant opportunity to address the above challenges. A well-informed workforce better understands the value of employer-based benefits, and is more likely to take advantage of these offerings. Sonoco is seeking to expand their benefits communication efforts through their relationship with The Williamson Group.

Understanding and appreciating the value of benefits Employees already feel uneasy when changes are made to their workplace benefits. They fear that any change, is a negative change. The vast majority of workers don’t understand the value of the benefits they have now. Benefits (aka - fringe benefits) can account for more than 30 percent of an employee’s compensation, yet few employees know the actual cost employers pay for providing benefits — health benefits in particular.

It isn’t simply that employees underestimate how much their employers pay for their benefits; they also lack an understanding of how their behaviours can impact employer costs, and feel no responsibility for containing these costs.

This benefits knowledge gap carries a number of consequences. First, workers who don’t know the value of their current benefits are more likely to look for greener pastures with the assumption that every organization will provide them with the same level of care and coverage. If Sonoco cannot effectively communicate the value of their benefits packages, then they will never see an effective return in responsibility and action on the employee side. Many employers are shifting the costs of benefits to their employees, and Sonoco’s workers need to know the price components of their benefits package, and what financial or lifestyle changes they will face if any of these components are revised—or eliminated altogether.

Creating a sense of satisfaction—your employer cares There is a strong association between benefits knowledge and employee satisfaction in the workplace. Employees who understand their employer’s benefits investment are more likely to be satisfied with their workplace, and feel connected with their employer and workplace. By educating their employees, Sonoco can demonstrate that they are an employer that cares about employee well-being, and encourage a reciprocal approach to caring on the employee side. Helping employees understand their benefits is an investment in retention and workforce morale that gestures towards a fiscally responsible employee base.

2

Stakeholders & Objectives Sonoco Stakeholders • Lynne Demontmorency • Marc Bannister

The Williamson Group Stakeholders • Marketing Communications - Faye Bulloch, Katie Michiels • Consulting - Noel MacKay

Key Objectives • • • • • • •

To improve employees’ understanding of Sonoco’s benefits provisions To initiate plan savings through the development of employee consumerism To improve employees’ understanding of sponsored pension plan To increase employees’ return on investment through retirement savings plan To promote “caring company” philosophy To promote employee fiscal responsibility within benefits plan To promote “Total Rewards” concept

Highlight benefits along four major components: 1. Group Health & Dental 2. Group Pension - Retirement Savings Plan 3. Disability Coverage 4. Health & Wellness Branding • Refreshed branding required for promotion of Sonoco’s Total Rewards communication strategy • Bright, fresh colours • Friendly, recognizeable imagery • Connect with manufacturing employee base • Themed messaging with common icons and taglines to be developed to increase impact and understanding

3

Audience & Messaging Audience - Key Details • • • • • • • •

Blue collar workers Address ESL challenge (English as a Second Language) Diverse age groups Approximately 80 percent male audience Approximately 90 percent family oriented Non-unionized Shift workers Approximately 1,000 workers at 12 sites

Messaging - Tone / Style • • • • • • •

Personal Friendly tone, non-threatening Plain language, friendly communication style, basic concepts Communications need to be in English and French ESL component means that conceptual components require simplification Language should not exceed a grade 10 level Begin with soft sell; promote health, family, and a company that cares

Messaging - Details for Medium Selection • • • • •

Traditional formats No access to internet at work Common areas at each work site Shift work Structured homelife - need to reach spouses

Messaging - Channels • • • • •

Print - posters, newsletters, brochures, letters, etc.

Direct mail Require tangible pieces In person - reaching out to key influencers, brief pre-shift meetings, promotional days on site Online not a great option at this time

4

Strategies & Tactics: Immediate Strategy #1 Ensure employees are familiar with basic plan design

Tactic Benefits at a Glance Produce easy to read benefit summary booklet for all employees. This booklet will provide a summary of plan details and coverage. Not to be personalized, but general information for non-unionized employees to demonstrate extent of benefit package. Not a total rewards statement.

Medium: Print marketing material, booklet (4-8 pages) Distribution: On-site Estimated cost: $2/piece = $2000 for 1,000 employees; Sonoco to print bulk and handle shipping to sites Translation: $0.24/word; estimate 1,500 words = $360 Total Cost Estimate: $2360

Strategy #2 Educate employees on current health status - collect health risk data

Tactic Health Risk Assessments • Use pre-designed carrier health risk assessments • Coordinate data extraction with carrier to develop outline of Sonoco Canada employee health risks • Provide incentive to complete - per site Medium: Online self-assessments; carrier based Distribution: Promotional card with link information included in benefit summary booklet Estimated cost: $200 per site for incentive based approach with the estimated twelve sites = $2400; no associated print or distribution costs as tactic is online / carrier based Total Cost Estimate: $2400

Timing Collection of information and coordination of materials to be completed over the summer months with the launch of booklets and Health Risk Assessments (HRA) to be in September 2014. HRA to remain open for a minimum of one month for data collection.

5

Strategy #3 Create profile of Sonoco Canada employee health based of HRA data. Educate employees on major health risks facing them today—and in the future.

Tactic Our Health, Our Future report Produce employee health report based on HRA data. Include health outlook based on results. Tone to be realistic, but optimistic. Emphasize health impact on employee, family, and organization. Include health tips, additional resources.

Medium: Print marketing material, booklet (8-12 pages) Distribution: on-site pick-up from HR before shift (see below) Estimated cost: $3/piece = $3000 for 1,000 employees; estimate postage to ship to each site = $600 Translation: $0.24/word; estimate 6000 words = $1440 Total Cost Estimate: $5040

Strategy #4 Promote “caring company” philosophy.

Tactic Your Health Matters - employee folios Produce branded employee folios in which staff may keep all of their health related documents and plan information.

Medium: Promotional item Distribution: staff to pick up from HR before shift with Our Health, Our Future report included Estimated cost: $10/piece = $10,000 for 1,000 employees; postage to ship to various sites = $1800 Total Cost Estimate: $11,800

Timing Data to be disseminated in November 2014 - for publication and distribution in December 2014.

6

Strategies & Tactics: On-going Strategy #5 Create on-going education and awareness opportunities for employees.

Tactic Quarterly health and wellness theme boards Each quarter The Williamson Group will produce large scale communication posters based on pre-determined themes for presentation / posting in Sonoco employee common areas. These boards will feature general health and wellness information, important quarterly dates, key facts / data, plan details, and employee stories / testimonials. Look and feel of infographic materials in order to ease information dissemination for ESL employees (visual representations to assist learning).

Medium: Print marketing material, large scale posters for print (72” x 48”) Distribution: Estimate one per site - posted in main common area Estimated cost: $175/piece = $2100 for estimated twelve work sites; estimate postage to ship to each site = $360 Translation: $0.24/word; estimate 1,000 words = $240 Total Cost Estimate: $2700 / quarter

Strategy #6 Promote employee engagement, responsibility, and connection with company through learning.

Tactic Quarterly employee “activity” books which feature soft sells on plan responsibility. These activity books will seek to inform and educate while offering employees break time activities that anyone can enjoy.

We want to create a culture of caring and engagement through learning. These activity booklets will feature common word and number games, trivia, and short stories / life-experience based articles. Think of them as a combination of “Coffee News” and Reader’s Digest, but with a focus on your employees and your benefit plan details. While employees are on break, they can enjoy a Sodoku, word-search, cross-word puzzle, trivia challenge, and amusing anecdotes - all featuring different soft sells on information pertaining to their group benefit plan, pension, retirement savings, or disability benefits. For instance, a Soduku may have a line of numbers highlighted and once complete, reveal the average spend on benefitss by Sonoco per employee. Cross-word clues will be based on health and wellness, or plan based knowledge, and each quarter, answers can be found within the content on the promotional / themed boards.

Medium: Print materials - booklet (20 pages) Distribution: placed in common areas near boards for pick-up and completion Estimated cost: $2/piece = $2,000 for 1,000 employees; Sonoco to do a bulk print and ship to each site with an estimated postage of $240 per quarter Translation: $0.24/word; estimate 2,500 words = $600 Total Cost Estimate: $2,840 / quarter

7

Strategies & Tactics: On-going Strategy #7 Ensure employee engagement with materials

Tactic Quarterly incentives for completion of activities Should it be needed, each quarter Sonoco can offer staff the opportunity to win small prizes with the completion of all the activities in the booklets.

Medium: gift cards or promotional items Distribution: up to 4 mini prizes per site. Provided to head office, distributed to all sites.

Estimated cost: $100 value / site = $1200 for estimated twelve work sites Total Cost Estimate: $1200 / quarter

Strategy #8 Engage spouse / family members in plan information / responsibility

Tactic Quarterly publications mailed to spouse; Sonoco’s Better Half publications Based off the quarterly themed boards, spouses will receive a mini-version of the information provided in the mail for posting on their fridge at home / placing in the “Your Health Matters� folders. This will serve to engage the spouses / family members in the same caring culture, while providing additional messaging opportunities.

Branded magnets sent with initial publication to promote posting on the fridge in the home.

Medium: Direct mail printed marketing materials (4 pages); promotional items (magnets), branded envelopes Distribution: Direct mail to all home addresses Estimated cost: $0.50/piece = $500 for 1000 employees in print costs; $1.20 in postage / piece = $1200 / quarter; bulk order 8000 envelopes at $1000; magnets at $0.60/piece = $600.

Total Cost Estimate: $3300 ($1700/quarter; $1600 initial)

Timing Themes to be determined in Fall 2014 with launch of boards, booklets, possible incentives, and spouse communication to begin in January 2015. They are to proceed on a quarterly basis with publications in January, April, July, and October.

8

Sample Visuals - Pending Approval Together, we all win.

TotalRewards

TotalRewards Please note, we are happy to go back to the drawing board on branding should none of these options peak interest.

Total Initial Investment: $23,200 Total On-Going Quarterly Costs: $7240; optional $1200

Please note that all pricing and timelines are to be considered estimates based on details provided. Should tactics, format, content (word counts) vary, revised pricing will be provided. The Williamson Group will meet with Sonoco on an on-going basis to evaluate tactical plan and success in order to modify approach as necessary. Creative and layout to be supplied by the Marketing Communications department at The Williamson Group with Noel MacKay providing all pertinent plan details and specifics. Sonoco to work in conjunction with The Williamson Group through Noel MacKay in the collection of employee testimonials, stories, and other pertinent details in support of the recommended communications. Sonoco to provide final approval on all tactical pieces prior to print. Sonoco is free to pursue their own print quotes should they not be happy with the pricing that The Williamson Group procures. The Williamson Group’s Marketing Communications department will gladly work with Sonoco’s preferred providers should it be requested. Final quotes and invoices will be provided to Sonoco as they arise throughout the fulfillment of any tactics pursued.

9