The importance of employee communication in a recession

TALKING MATTERS is a paper that shows how to achieve business goals in a downturn through effective employee communication. It was produced by Impact Employee Communications – Australia’s and the Asia-Pacific’s leading employee communication consultancy. Impact is part of Ogilvy Public Relations Worldwide, Australia,

We are facing one of the most challenging business environments in years. Global growth is declining and unemployment is rising. No one knows how long the downturn will run or what the consequences for international markets, industries and individual businesses will be.

In these challenging times engaging employees in a meaningful way and managing their morale is critical for organisations meet their goals. Employee engagement is tied to productivity, business performance and employee morale.

Notable differentiators for this recession include:

• Gen Y has only seen the good times. They have not encountered an economy as turbulent and negative as the one we are currently experiencing
• The emergence of social media as a mechanism that links people both globally and locally in a way that has not been seen before. This means information travels faster, facts are unlikely to be ‘owned’ by a privileged few and it is an extensive and effective communication ‘enabler’.

Leadership is now more crucial than ever. The most successful leaders are those who proactively invest time to engage with employees and understand the importance of leading by example.

It is crucial to maintain open lines of regular communication with employees to reduce anxiety and keep the business moving forward. Employees must hear news about the organisation from inside the organisation first.

Organisations that keep their employees in the dark will find themselves the targets of negative opinion and criticism both inside and outside the organisation.

Messages must be consistent to maintain trust and prevent the rumour mill. For many CEOs, blogging represents a way to connect with employees, helping them get to know their leaders in a more informal, approachable environment, while also encouraging dialogue.

Leaders are not the only communicators within an organisation, or even those best able to initiate or influence change. Employees themselves can be keen and powerful influencers with their colleagues and can be effective change agents, supporting others to accept organisational evolution. Employees who have a strong connection to the business strategy and understand how they fit into the bigger picture will deliver more productive outcomes.

Effective employee communication is a ‘must have’ for organisations to ensure their sustainability and future growth during this downturn and beyond.