15 April 2008
Employee communication protects company bottom line
The importance of maintaining communication – from unions to CEOs.
The Union Review recently posted the results of a workplace study showing the benefits of unionized workplaces.
Unions are associated with improved communication – and other benefits, such as higher productivity, lower employee turnover and a better-trained workforce – says Professor Harley Shaiken, University of California-Berkeley.
Benefits of unionized workplaces
Several other academic studies support his findings, saying that US surveys have found a positive, statistically significant association between unions and productivity of between 10% and 20%.
Surveys have found a positive, statistically significant association between unions and productivity.
Unions can also positively impact economic development. For example, members of the Wisconsin Regional Training Partnership – “an association of 125 employers and unions dedicated to family-supporting jobs in a competitive business environment” – have stabilized manufacturing employment in Milwaukee by contributing some 6,000 additional jobs over the last 5 years.
Union channels give workers a voice
When unions provide workers with a voice, employees are better able to deal with safety hazards. Survey findings suggest union growth could indirectly reduce job stress by helping workers cope more effectively with job hazards.
By improving communication channels, unions give workers the ability to improve their conditions short of leaving and so reduce the organization’s turnover.
One study credited the General Motors-United Auto Workers partnership at the Saturn Corporation with building a dense communication network, with a significant positive impact on quality performance.
CEOs – a key communication channel
However it's done, effective employee communication is clearly the way to go.
Writing in Financial Week recently, Gene Colter and Ted Birkhahn, of New York-based strategic communication firm, Peppercom, compare the different communication styles of Bear Stearns' chairman, James Cayne, and Lehman’s CEO, Richard Fuld.
By improving communication channels, unions give workers the ability to improve their conditions.
Support for staff in turbulent waters
CEOs navigating similar difficult times need to remember, “Employees really are your most valuable asset,” say Colter and Birkhahn.
“Failure to give them the tools they need to do their jobs – information, tone from the top, moral support – only makes a bad situation worse.”
Colter and Birkhahn contrast the apparent silence from the top of Bear Stearns – shades of Yahoo! perhaps? – with Lehman’s “gutsy, productive communication” as CEO Fuld “made himself broadly available for commentary.”
Colter and Birkhahn say companies need to find ways to engage employees and keep them motivated at work. They suggest using digital tools such as blogs, podcasts, intranets and wikis.
Don’t stop once you start
“The type of digital tools deployed will depend on a variety of factors at any given firm: its overall culture, how employees typically receive and digest information and the willingness of management to dedicate time and effort,” Colter and Birkhahn say.
But don't stop once you've started, emphasize the consultants. “It's important to view digital campaigns as an ongoing venture during good times and bad,” they say.
Have your say
Could it be time for a resurgence of trade unions in the workplace? Although deemed by many to be a “bad thing” – old fashioned, militant and anti-management – US studies are discovering several benefits.
Some senior leaders prefer to ignore their unions, keeping them out of the information loop, but how much better to bring them “inside the tent”. How do you communicate with your organization’s unions?
And on the topic of employee communication – another “radio silence” story has recently hit the headlines. While this behavior might be understandable, it clearly doesn’t work – certainly not in terms of keeping employees motivated to continue doing a good job. How do your senior leaders react in a crisis – and are you able to coach them into Fuld’s style – “gutsy, productive communication”?
Discuss these issues with other comms practitioners by joining the Internal Comms Hub members' group on the Communicators' Network.
Other recommendations:
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