7 October 2008
Communication tips for leading workers through economic crisis
Ways executives can cheer up moping employees.
“The current turmoil in financial markets is obviously a distraction to workers,” says Richard Guinn, senior communication consultant at Watson Wyatt, a global consulting firm.
To maintain employee morale during times of financial crisis, senior leaders can allay employee fears by communicating clearly on topics such as pensions, 401(k) investments and job security.
Leadership communication principles
Guinn's advice, that communicators can relay to senior executives, includes these basic communication principles:
- Be a leader. Leaders don’t have to have all the answers. Tell employees what you know and what you don’t. Explain the steps the organization is taking to identify issues and resolve problems. Knowing senior executives are there to lead through uncertain economic times is crucial to your people.
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Have a process for quickly developing and distributing answers to rumors and for clarifying inaccurate statements, such as possible layoffs.
- Be visible. Credibility, conviction and passion are important messages that only actual presence can convey. Employees can benefit from seeing engaged and informed senior leaders through webcasts or other interactive vehicles.
- Use your team. Make sure the management team knows how and what to communicate, and that no one is a bystander. Limit potential damage from leaders’ informal conversations that are overheard and ripple through every organization.
- Share responsibility. Be clear about what you want your managers and your workforce to do. People want to help – tell them how. It’s never a bad time to reinforce customer focus.
- Give up the myth of message control. Find ways to listen to what's on employees’ minds. Monitor the press and social media for what's being said about your company and your industry. Have a process for quickly developing and distributing answers to rumors and for clarifying inaccurate statements, such as possible layoffs.
- Show your strengths. Reinforce the core competencies and values that make your organization successful. Talk about how they'll help the organization thrive in the future.
- Be humane. Some employees are experiencing personal trauma from falling account balances and home prices. Acknowledge their pain and make them aware of the resources at their disposal, such as your company’s Employee Assistance Plan (if you have one).
- Be coordinated. Coordinate your internal and external messages. Employees should hear company news from the company first.
How sensitive are your managers?
Earlier this year we ran a quick poll on the Hub that asked "Does your firm communicate major change such as mass layoffs and outsourcing sensitively enough?" You answered:
- We can always do better: 44%.
- No, we should be ashamed of ourselves: 29%.
- We've learned from our past mistakes and are making good progress: 20%.
- Yes, we have a well-structured procedure in place: 7%.
Aniko Czinege (pictured, left), author of Melcrum's special report on Communicating during economic downturn, suggests ways communicators can address this question and help managers and leaders communicate sensitively and appropriately during tough times:
- Coach leaders and managers on how to be more approachable and respond positively to questions.
- Prepare leadership to communicate consistent core messages.
- Agree on a consistent leadership response to challenges and issues.
Acknowledging employee fears
Czinege also reminds us that during uncertain economic times, or if a company's undergoing major change, rumors are often rife about potential plans.
Her advice for how communicators can help manage such gossip is to use two-way leader meetings – i.e., skip-level meetings and brown bag lunches – to “out” rumors.
"Prepare the leader in advance and help support the meeting by taking the role of asking the challenging questions that are on the employees' minds. Provide a report back from the feedback session on the intranet or company newsletter," Czinege advises.
Have your say
Do you agree that rumors should be addressed head on during times of change? How do you balance the risk of a manager saying "the wrong thing", with the positive effect such transparency could have on employee morale?
Do the findings of the quick poll resonate with your experiences of how major changes are handled at your organization? Share your thoughts on the topic with us below.
Recommended resources:
Melcrum report: Communicating during economic downturn
Eight ways to maintain confidentiality during change
Coaching managers to become better team leaders at Norwich Union
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