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Strategic Partners

17 February 2009

Surveys show impact of recession on employee communication

Engagement spend rises: Focus on face-to-face comms and talent management strategy.

by Annie Waite, Global Editor, the Internal Comms Hub

Three recent surveys have revealed how economic downturn has effected employee communication so far, and what communicators predict for the industry in the coming 12 months.

First, an online survey of senior in-house communicators and HR professionals has revealed that nearly 70% plan to change how they communicate with their employees as a result of the economic downturn.

Of the 60 people surveyed in November and December 2008 by Allman Communication, a corporate communication consultancy, 78% have had their budgets for 2009 frozen or cut.

Face-to-face communication recognized as more important
Lesley Allman, managing director of Allman Communication outlined: “While budgets for ‘big ticket’ items such as conferences and printed publications are being cut, 80% of our respondents plan to increase their spend on face-to-face meetings with staff and just over 60% plan to increase spend on company intranets."  

"This is promising news as one thing that was learned from the previous recession is that those companies that can maintain employee engagement and benefit from extra effort from their staff have a much better chance of surviving and flourishing during the tough times and beyond,” says Allman.

In response to its survey findings, Allman Communication has created a 3-step guide to help organizations to better communicate with their staff in tough times.

Step 1: What to communicate

• Be clear and consistent on the situation the organization is in and what is being done about it. Make sure employees know what they can do to help and what's expected of them.
• Continue to communicate the company’s vision, strategy and progress to show that leadership has a long-term plan.
• Ask employees for their ideas for things like maintaining engagement, winning new business or reducing costs.
• Celebrate successes, however small, e.g., keeping or winning business, receiving thanks from a customer, overcoming challenges, winning awards, passing exams and so on.
  

Step 2: Where to communicate

• Undertake a communication channel "health check" to see what is working best for employees.
• Consider switching from high cost channels e.g., conferences, printed publications/mailings to lower cost ones e.g., intranets and face-to-face meetings.
• Ensure all scheduled team briefings and communication meetings are maintained to demonstrate business as usual and to avoid creating a vacuum or room for speculation.
• Ramp up use of "quick" listening channels e.g., walkabouts, focus groups and pulse surveys.

  Consider switching from high cost channels to lower cost ones like intranets and face-to-face meetings.

  
  

Step 3: How to communicate

• Ensure your leaders and line managers have the required capability to communicate effectively with their teams.
• The key to this is to communicate, communicate, communicate and listen, listen, listen.
  
• If leaders and line managers lack the information or capability to do this, they should be trained immediately.

''State of the market" survey
In another survey released this month, the apparent resilience of the PR and communications market is revealed. Of the 160 UK communications directors questioned as part of VMA Group's state of the market survey, 23% are looking to grow their teams.

Other results of its survey:

• 72% of respondents claim they had no plans of cutting headcount.
• 48% of PR agencies report an increase in project work.
• 54% of respondents said that they would be looking at cutting their PR budgets compared to the last financial year.

Pressure from inside corporates during the downturn is significant – 64% of in-house respondents said they've felt an increase in pressure to perform from their internal clients.

One survey respondent remarked: "If we learned one thing from the last recession, it’s that organizations that retain a strong voice and profile during a recession tend to come out of it stronger than those that don’t."

Fewer knee-jerk reactions
According to VMA’s CEO, Julia Meighan, "In today’s world, it is incredibly important to manage your business reputation as rumors can spread across the internet in minutes, causing financial as well as reputational damage. Successful PR and communication professionals will be assets to their organizations, able to lead businesses through and out the other side and placing them in an ideal position to benefit once the market picks up."

Alex Cole, global corporate affairs director at Cadbury, commented on the survey findings: "Teams who have fully grasped the need to find the business case for communications, rather than communications for communications’ sake, will thrive".

Cole goes on to say, "Today’s communications professional needs to think and act like an operator as much as a functional specialist."

Keep an eye out for "bargains"
Agencies have seen a significant increase in the amount of work relating to change management issues – 36% of agencies reported that they've been asked for an increase in focus on advisory services to CEOs and Boards on managing communication through change.

"The market downturn will actually provide some opportunities as well and we have clients who recognize that there will be bargains out there. In certain areas there will be redundancies and, as a result, some very attractive candidates will enter the market.

In this climate, Meighan suggests, candidates are likely to be more practical about their salary expectations with a greater emphasis on the role, career progression and stability of the organization. "Companies that are able to snap up these talented people will retain a strong voice and profile during the recession, with an expectation that they'll emerge stronger and fitter than those that do not," she says.

Talent management focus
In another survey, this time from Right Management, an HR consultancy, two-thirds of organizations are not planning to make cutbacks, but instead anticipate focusing their talent management efforts on retaining and engaging their workforce in 2009.

Right Management surveyed more than 700 HR professionals in North America to gain insight into their talent management strategies for 2009. It asked if organizations would be focusing on reducing their workforces or retaining and engaging employees. The results showed that in 2009:

• 67% of organizations plan to focus their efforts on retaining and engaging workers.
• 33% of organizations plan to reduce their workforce.
  

  The best strategy is to develop the employees they have to meet current and future needs so they can respond quickly to changing market demands.
  

Effectively managing talent will be a top priority for organizations looking for ways to successfully navigate the current economic climate while continuing to meet business objectives, advised Right Management’s President and COO Douglas J. Matthews.

“While layoffs are anticipated given the market volatility, what's surprising is that so many organizations are planning to invest in their employees. Organizations need to keep key positions filled. And the best strategy is to develop the employees they have to meet current and future needs so they can respond quickly to changing market demands and remain competitive.”

Keeping engagement high
Matthews cautioned that in an economic downturn, employers need to work harder to ensure employees remain engaged and focused on their work. “Acknowledging their concerns – listening and demonstrating empathy – can go a long way toward sustaining engagement in your workforce. Information is empowering. A leader’s ability to communicate effectively is critical so that employees don’t get side-tracked with assumptions and speculation.”Right Management conducted the online poll between June and October 2008. A total of 704 mid to senior level executives from a wide range of industries and functions responded to the survey. The poll had a margin of error of +/- 4% with a 95% confidence level. 
 
Matthews recommendations echo the advice of many other communication experts at this time:

1. When communicating, understand the unique needs of your individual employees and that “one size does not fit all”.
2. Provide consistent and open communication that informs on strategy, goals and current performance metrics.
3. Offer context so employees understand how they are contributing to the success of the organization and how they can positively impact results going forward.
4. Don’t make predictions, state facts.
5. Be authentic, show compassion and empathy.

Have your say
That "67% of organizations plan to focus their efforts on retaining and engaging workers", according to Right Management, is a positive sign, amongst the current doom and gloom.

Do you think the majority of employees are actually aware that such a high percentage of organizations are thinking this way, or are many employees still being kept in the dark about how companies are really faring? What efforts have you gone to to try and increase transparency at this crucial time? Share your thoughts with us below.

Recommended resources:

Why you should stay upbeat during economic downturn

Executives fear poor decisions from recession inexperience

Focus on your "almost engaged" employees for quick wins

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