Maintaining Great Employee Communication in Tough Financial Times
As companies struggle to deal with the worsening economy, employee communication is often neglected. Yet ignoring employees concerns can be costly in more ways than one. If not addressed, employee anxiety reduces productivity and may ultimately impact the bottom line via stress-related illness, absenteeism, and decreased employee engagement and loyalty.
I would like to suggest five strategies to maintain effective communication in trying times.
#1: Show the C-Level
In general, the more unknown factors that exist in a company, the more important it is for the companys leadership to be seen and available to the employees. Share the process by which senior management is weighing options and making decision before all of the decisions have been made.
#2: Eliminate the Strain of Silence
Unfortunately, many presidents and CEOs are reluctant to hold town hall meetings or webinars in times of uncertainty. They may be thinking, What on earth could I say when I dont even know for certain how the financial situation will impact us or what we will do about it? The temptation may be to hold off on communicating until you know more.
The reality, however, is that if you arent talking, your employees are talking. When their worries and the office gossip is not addressed, the rumor mills work even faster and employees begin to doubt the sincerity of their company. To build loyalty and trust, senior management must be committed to keeping their employees informed about all aspects of business that could affect them.
#3: Acknowledge the Anxiety
It is as important to share the options you are considering and the possible course of action you will take as it is to give definitive answers to your employees. Communication experts TJ and Sandar Larkin, have found time and again that employees come to doubt senior management more when they hear nothing at all than when they hear about a difficult or challenging situation.
Organizational transitions expert William Bridges agrees. Bridges believes that it is better to tell employees that you don’t know what we will do about X, but that you commit to letting them know as soon as you do than it is to say nothing.
#4: Convey Realistic Optimism
When Lehman Brothers announced bankruptcy last fall, employees throughout the financial industry started to panic. The Navy Federal Credit Union in Vienna, Va., responded with a letter from its president. In the letter, employees were reassured with the reminder that the credit union is a very conservative organization that never ventured into subprime lending. At the same time, the president explained that the credit union was not immune to the crisis.
Leaders should aim to convey this positive blend of practical optimism. Employees dont want to hear watered down versions of the truth. Communication expert Robert Holland suggests leaders to communicate to employees in a manner such as: It is clear the financial crisis has affected everyone in a very individual way. These are anxious and confusing times for everyone, but let me share with you what our company is doing to make it through.
#5: Keep in Touch with Remote Employees
In turbulent times, employees in remote locations or in the field can feel forgotten and anxious. One Denver director of a West Coast company in the midst of a large restructure has implemented a system for delivering information to remote employees which consists of:
1. A short staff meeting first thing Monday Morning in order to ensure that every one is up to date on any news or decisions that took place over the last week.
2. A structured all-hands meeting every Wednesday afternoon, where the agenda consists of what rumors people have heard, what we know now, and what we dont know.
3. A Friday afternoon e-mail to all employees summarizing the weeks news regarding the reorganization.
What makes a plan like this so appealing is that it is open and consistent. Employees are confident that they are being kept in the loop and are able to express their concerns. Some much needed laughs result from sharing the rumors circulating. The entire team feels supported and connected to each other.
Senior leaders in an organization must find a venue and format that works for them so that they dont avoid acknowledging employees concern and participating in a healthy two-way communication. In order to be successful in the long run, excellent employee communication is not an option, particularly when stress levels and employee concerns are running at top levels.