Employee Communication in Tough Financial Times
While businesses are struggling to survive in a turbulent economy, it is very easy to avoid communicating with employees. This avoidance can affect overall company performance for a number of reasons. 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.
Here are five tips for communicating effectively in turbulent times.
#1: The C-Level Needs to be Seen
As a general rule, senior leader visibility and accessibility need to increase in proportion to the number of “unknowns” in an organization. Instead of waiting to hold town hall meetings until all of the details have been worked out, communicate frequently when options are being weighed and decisions are being 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 know they will have little solid to say because even they aren’t certain what the impact of a situation will have on the company or what the right response should be? The temptation may be to hold off on communicating until you know more.
Unfortunately, silence only leads to rumors. 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. It is critical for senior management to talk openly and honestly about the state of affairs in order to curb unfounded rumors and to keep their employee’s trust.
#3: Acknowledge the Anxiety
When you don’t have the answers, communicate possibilities and probabilities. TJ and Sandar Larkin, communication experts, indicate that employees lost trust in senior management not because they are hearing about difficult situations from them, but because they are hearing little or nothing at all.
Organizational transitions expert William Bridges agrees. Bridges has discovered that staff members typically prefer to hear that there is no news at all, but they will be the first to be told when there is.
#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. The letter reminded employees that the credit union operated very conservatively, and had never participated in the types of lending practices that got Lehman Brothers in trouble. At the same time, the president explained that the credit union was not immune to the crisis.
This blend of realistic optimism is something that leaders should strive for. Employees don’t want the truth to be sugar-coated. Robert Holland, a communications expert, suggests management to convey a message such as: I understand every employee has been impacted by the financial crisis in a special 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: Reach out to Remote Employees
In times like these, it would be easy for employees in remote and field offices to feel out of the loop and fearful.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.conduct a short phone meeting first thing each week with all staff in order to communicate any new information that has happened since the prior week.
2.A more formal all-hands call midway through the week in order to share rumors or gossip people may have heard and to set folks straight as to the facts.
3.An end of week email to all staff summarizing what has transpired over the week with respect to the reorganization.
The beauty of such a plan comes from its consistency and openness. Staff members feel comfortable voicing their concerns and trust they are fully in the loop as to what is proceeding.There is a lot of laughter over some of the rumors that surface, which really boosts morale.The final result is a team that feels connected and supported, regardless of their location.
Whatever the format, it is critical for senior leaders to acknowledge the anxiety and engage employees in two-way communication. Good leaders recognize that when anxiety is running high, employee communication is not optional, it’s imperative.
Wendy Mack is a professional advisor, trainer, and author with a focus in leading and communicating change. Download her free e-book, Transforming Anxiety into Energy at www.WendyMack.com
