Communicating To Employees During Difficult Economic Times

In 1998, Pat Jackson wrote in the forward to pr reporter’s special report on Shaping World –Class Internal Relationships & Communications that “the task of motivating employees and achieving teamwork has been made difficult by a more diversified workforce, work-family conflicts of working parents, social issues that penetrate the workplace, decline of organizational loyalty and new ethical standards.” And that was in GOOD economic times!

Today, employees are faced with a daily barrage of messages – both spoken and unspoken – about the state of the world, the economy, their industry, their organization and their job. Emotional ambushes are everywhere, causing moods, focus and outlook to plummet due to something one has read or heard. Unemployment rates, industry troubles, housing foreclosure numbers, sales declines and stock declines can all be contributing factors to low morale.

Leaders in our organization, even the most communicative ones, tend to close down communication when faced with uncertainty. Communication become stilted, controlled, and limited, if not non-existent. Organizations suffering from steep sales declines have senior managers hyper-focused on stock-price, sales and production – but not communication. Some managers have the mindset that employees are fortunate ust to have a job.

Thus, fear grows and paralysis sets in. Paralysis can impact productivity and prevent employees from helping us position our organizations for success.

Effectively Communicate in this Environment
We must begin with an understanding of the anxiety levels your employees are experiencing, then design a communication system that will motivate them.

Start with an environmental scan to ascertain the following:

• Is your industry or related industries in trouble? Stock price down? Sales down?
• Are there layoffs or threat of layoffs in other, similar organizations?
• Have there been layoffs or threat of layoffs in your organization? Department?
• Do many of your employees have relatives or friends in financial trouble?
• How many of your employees have significant personal financial trouble? Trying to pay off a mortgage that is underwater? College or car loans?

Research First
Examine the internal culture from before the downturn and now.

• Was\Is the managerial style & training open and fluid? Were\Are managers good communicators?
• Was\Is there cross-organization sharing – turf protection or teambuilding?
• Was\Is listening valued – bottom up feedback valued, acted on or ignored, discouraged?
• Have there already been salary cuts, furloughs, 401k stoppages or layoffs? How were they handled? With compassion or chaos?

Use a scale of 1 – 10 to rate the level of anxiety on each of these dimensions, with 10 being the highest level of anxiety. Though formal research on these subjects would be ideal, given the circumstances, informal research will work. But don’t rely strictly on your own gut. Get out and talk to opinion leaders in the organization at all levels.

Change Communication Strategies According To Anxiety Levels
Two different strategies are recommended, depending on the level of anxiety in your organization. You may also have locations, divisions or departments that require differing approaches.

Low Anxiety Strategies & Tactics
Organizations with relatively “low anxiety” levels (a majority of indicators at 5 or below on the measurement scale) would utilize the Low Anxiety end of the matrix (see diagram).

Here, the strategy is to continue a regular schedule of “traditional communication” vehicles and sources. “Monitor and respond” to isolated incidents of anxiety spikes. “Isolate and solve” issues that arise as soon as possible to keep them from spilling over to the whole workforce, thus spreading anxiety.

Continue to utilize “Supervisor as Communicator”. The supervisor is well-positioned to confirm and explain organizational issues - they are a trusted resource. Finally, keep the focus on “goals”, and big picture achievements.

Tactics involve ongoing research, assistance in potential stress areas like financial and stress management. Make sure senior management is visible, interacting with employees whenever possible. Find roles for the employees to remain focused and active internally, with cost saving ideas and action, and externally through an organized ambassador program.

"Message strategy" should focus on things that make a difference, highlighting what is going right -- what is being done to improve productivity and performance and how employee ambassadors are making a difference.

High Anxiety Strategies & Tactics
An organization that has High Anxiety, a majority of 5’s and above on the measurement scales, should take a different tact.

First, the strategy should be one of “High Touch”, with as much face-to-face and one-on-ones as possible, connecting with employees on a personal level. Secondly, “Secure and Hold” employees who are struggling. This means working to get them stable and then reinforce and monitor them. As with low level anxiety communication, “Isolate and Solve” any problems that you find. A significant difference here is the use of “Management (rather than Supervisor) as Communicator”. In these circumstances, employees want to hear information from the person in charge. Let supervisors reinforce the messages, but keep management as the primary communicators. Finally, change to an “Objectives Focus”. Set smaller objectives, weekly or daily, that can help employees work toward a bigger goal. The achievement of small steps gives a sense of accomplishment toward the overall goal.

Tactics should include communicating face-to-face and one-on-one, and gentle cheerleading. Focus on what employees can control - for example, customer service strategies (which certainly can contribute to the bottom line).

Message strategies should be designed to keep things calm while maintaining transparency. Do not allow management to promise things which might not come to fruition, or raise hopes. But do not raise fears either. Education is key.

Employee Activities & Programs
These can take many forms, but should be appropriate for your organization’s culture. They should be “authentic” (true to the organization’s values) rather than “flavor of the month” programs. They should be “sustainable”, able to continue after the downturn is over. Activities should also be both “meaningful and measureable”. Make sure they are not make work but actually make a difference to the organization.

• Ambassador programs can utilize pre-existing relationships employees have outside the organizations (business groups, school relationships, nonprofit boards, leagues, etc). Finding key outlets where your organization is not currently represented is important. Ask employees to represent you. Regularly brief on key messages!
• Social responsibility programs give employees a sense of giving back and the ability to see beyond their own situation. Consider groups and organizations where employees are already involved. It’s important that employees at all levels can participate equally. Ideally, these will be executed on a local level so that it is easy to get positive feedback and reinforcement to employees from local community members.
• Teaming/Collaboration can take place across divisions or departments. These include sharing skills (making employees more valuable to the organization and, if necessary, more marketable outside the organization). Create opportunities for employees to brainstorm on cost-savings and new opportunities. Make sure you have organization development counselors available for the toughest areas. And don’t forget the need to celebrate – it doesn’t have to cost much!
• Communication opportunities – lateral, bottom up and top-down can be expanded. Feedback mechanisms are key. Train supervisors and managers to listen better. Give guided questions forms to help them probe issues.

If/When Layoffs Happen
Much has been written about what to do when layoffs do come. How layoffs are handled is critical to the commitment and continuing productivity of those who remain. Be open about the rationale for layoffs and how the decisions were made. Treat severed employees fairly. If you want 110% from those left, they need to believe that the organization is worthy of it.

Watch the contradictions! When management announces layoffs on Friday and then take corporate jets to a fancy conference, give out big bonuses, or host lavish holiday celebrations, trust is shot. Avoid even the appearance of hypocrisy.

In the JJ&W “9 Ways PR Contributes to the Bottom-Line – The Non-Financial Indicators” , way #2 is “Organizational Motivation”, using internal relations, communications and OD interventions to build morale, teamwork, productivity and a corporate culture that works toward establishing One Clear Voice outreach. In tough economic times, applying these skills is critical to our organization’s bottom line success.

(For a copy of the Anxiety Matrix, or the theoretical models upon which this article is based – the PR Behavioral Model and Maslow’s Hierarchy of Needs, please contact Stacey Smith at ssmith@jjwpr.com).