Internal Communications in Difficult Times
Posted by Brian Healy on June 22, 2009 in Internal Communications with 0 CommentsWith the economic challenges we are currently enduring and the ensuing organisational change and challenges, internal communications takes on an even more vital role.
First, let's explain exactly what we mean by difficult times. For many organisations the current economic downturn means communicating redundancies, restructuring and closures. While bad news like lay-offs will always be a blow to employees, it is certainly possible to soften this blow through good planning and good communication. 'Andy Grove, co-founder of Intel Corporation, gave sound advice when he said "The worse the news, the more effort should go into communicating it."
Open and honest communication within the organisation will result in a smoothly-running process and a rapid return to productivity for the remaining employees. Many organisations have yet to learn that saying nothing gives others the chance to fill the silent void with rumours and conjecture. Silence fuels the rumour mill and 'there is no opportunity to manage the message. Employee morale, trust and alignment all suffer greatly', as G. Hoover in 'Maintaining Employee Engagement when Communicating Difficult Issues' says. If at all possible, employees should be given warning that lay-offs may be coming. 'Warning of possible lay-offs may create anxiety around the water cooler, but it does give employees time to prepare themselves emotionally and financially', says Matthew Boyle.
Of course there are occasions when organisations are legally prohibited from sharing sensitive information with employees. Rumours should still be addressed. Hoover cites an example in which a 'company's leadership explained why it could not confirm or deny the rumours and promised to follow up as soon as possible...Staff reacted positively'.
Decide who will be charged with breaking the news and prepare them. Employees may appreciate the news coming from a line manager, with whom they have a personal relationship, rather than a corporate axe-man, but ensure the line managers are ready and able. As Boyle advises, 'The managers doing the firing need to know how to calmly convey that the decision is final, but not personal.' Take care to avoid jargon; this is an emotionally charged situation and calling lay-offs 'right-sizing' is only going to confuse and anger employees. As Kim Ribbink points out, '[Jargon] can aggravate an already fraught situation by conveying coldness and insensitivity to employees looking for reassurance'.
Impersonal and inappropriate messages result not just in anger and distress among the former employees but also among the 'survivors' who remain, and contempt for the organisation among stakeholders and competitors.
As an example of worst possible practice, a UK firm The Accident Group famously fired 2,400 people by text message. The messages also included the information that the company was bankrupt. "Sorry to inform you that you will not be paid today. Don't bother ringing the office." Radio Shack in the US also famously informed staff of massive lay-off by email. 'The organization that employs people who do this will get a reputation as cold, callous and unfeeling and who wants to work for an organisation like that? ('Bad News Bearers')
According to one study in the Academy of Management Journal, a lay-off of 1% can result in a turnover of 31%. If the company is already in financial trouble, costly recruitment and training may be the nail in its coffin. 'The resulting unexpected staff shortage can hinder efficiency, and the company incurs costs as it scrambles to find and train new people.' Communication is key in avoiding this. These employees will experience 'survivors' guilt' and will struggle with doubts about the organisation and about their own future. They will need to be either reassured or advised that more lay-offs may be imminent, and advised of any changes to their own roles brought about by colleagues' absence.
Finally, open and honest communications employed now will pay off in the future if the organisation does undergo major change. 'The more leaders cultivate trust when times are good, the more they will reap the benefits when the cream turns sour. It is vital that leaders focus on good communication in good times and bad', says Hoover.
Brian Healy provides consultancy across a broad range of communications arenas, but specialises in employee engagement and issues relating to internal communications. Find out more at Brian's Profile. Don't forget to subscribe if you'd like to hear more!
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