The ongoing recession highlights the need for more transparent communications between the C-suite and the factory floor. The gap in employees' minds between their company's business strategy and its impact on pay, benefits and even jobs existed even when the economy was healthy, but it has grown wider since the economic downturn.
Many organizations have positioned recent pay and benefit adjustments around the economic climate - and certainly the economy is a major factor behind the changes. However, forward-thinking employers recognize that the recession won't last forever and being competitive going forward means having a workforce that is committed, not distracted by cost-cutting measures.
This puts human resources and benefits leadership in the driver's seat to develop communications that narrow the gap and position their organization to emerge from the recession with personnel who are less anxious, more trusting and more productive. The HR-benefits community has gained a lot of traction in recent years through the communication of tactical concepts such as wellness and retirement planning. What it hasn't done as well is educate employees about the value of the employment experience.
Fortunately, human resource professionals understand how important effective communications are to employee appreciation of the employment deal. According to the results of the 2008 Aon Consulting Benefits and Talent Survey, nearly 57% of employers say that communications has a significant impact on employee satisfaction. Regrettably, only 4% communicate the employment deal more than once a month, and 31% only communicate it to new hires.
Helping clients design and implement a long-term human resources communication strategy that addresses a more holistic view of necessary changes can help alleviate employees' anxiety and refocus their energies on your business. Will it require their investment and effort? Yes. Is it necessary? Absolutely.
A recent report from the Corporate Executive Board shows a substantial decline in employee engagement in the first quarter of 2009, resulting in as much as a 5% reduction in employee productivity. It's hard to be engaged at work when leadership seems out of touch with the average employee.
Fortunately, the guiding principles learned by organizations when developing pay and benefits communications can be applied to educating employees about business challenges and their affect on the employment experience.
>> Keep it simple. Define the messages clearly and in terms employees can understand. Get to the point quickly and avoid business jargon. Explain the decision-making process and what the company expects to gain and when.
>> Walk in their shoes. Answer the question: What does this mean to me? Employees need to know what the impact will be on their day-to-day activities. Be specific about your expectations and give employees as much notice of a change as is practical.
>> Put a face on it. Empathy goes a long way toward building trust. Having senior leadership available and visible during bad times helps employees feel that this is a team effort. Getting to know senior leadership makes it more difficult for workers to perceive executives as the "bad guys."
>> Keep the front line in the loop. Make sure your managers have the resources and access to information they need to accurately discuss the issues with employees and minimize false rumors. Front-line supervisors are the most important source of information for workers.
>> Stay committed. People are feeling lost and unsure. By being connected to your workforce, you reinforce trust and credibility. And, look for different ways to get messages out. For example, social networking media can help encourage employee involvement by enabling them to share their ideas, thoughts and feedback through blogs, message boards, Twitter, Facebook and other networking channels.
Despite cutbacks and reductions, companies still spend a significant percentage of payroll costs on compensation and benefits. However, there continues to be a large disconnect between the investment companies make and the perceived value by employees. Brokers can help employers connect the dots between company business goals and the employment experience.
Box-Farnen, VP and Communication Consultant, Aon's Human Capital Consulting practice, can be reached at helen_boxfarnen@aon.com.
