By Linda C. Haneborg
Employers are finally hiring again—nearly a quarter-million jobs were added to the U.S. economy in May. Economists now predict that all 2.7 million jobs lost since the 2001 recession could be recouped by the fall elections if the economy continues improving at the current rate, creating a high demand for workers. If companies want to retain current performers and attract top talent, they need to ensure they're communicating effectively with their employees.
A recent study by Watson Wyatt Worldwide, a human capital and financial management firm, concluded that companies with the most effective employee communication programs resulted in a 26% total return to shareholders versus a 15% loss by firms with poor communication ratings. The survey also showed that companies valuing communication are more likely to experience lower employee turnover than similar companies in their industry.
Today's employees demand more dialogue with decision-makers. According to a 2002 Society for Human Resources Management survey on employee communications, employees believe that companies could strengthen credibility by increasing two-way communication involving employees in the decision-making process. Eighty-four percent of employees said they want management to share good as well as bad news as quickly and completely as possible.
However, if employees don't feel they're being told the truth, the company is better off having not said anything at all. A 2003 survey on enhancing corporate credibility by HR services firm Towers Perrin asserts many employees think their company is more apt to tell the truth when speaking to shareholders than to their own employees. Overall, only 51% of workers believe their employer generally tells employees the truth.
Here are several simple, immediate steps leaders can take to improve communication with employees:
- Two-way dialogue
Employees should feel comfortable interacting with executives. Many companies have a town hall-style meeting each quarter to allow employees and senior management to openly discuss issues affecting the company. Others have an open door policy, allowing employees to meet with executives when an idea or concern arises.
- Listen to your employees
Many executives tune employees out, perceiving their suggestions as complaints. Workers want to know that company leaders value their opinions and feedback. Employees are motivated by the idea that their input can make a significant impact on the company. Perhaps even more important than listening to employees and soliciting their feedback is acting on the information.
- Speak honestly
Be open with employees, even if the news is bad. They will spend less time worrying if they know the facts. This practice of “telling it straight” should occur from the top down.
Senior executives set the communication tone in any company by being available and honest with employees. Top leaders should be a shining example of good communication for the rest of the company.
Learn more about improving communication at your organization at these AMA Seminars:
Author Bio: Linda C. Haneborg, is senior vice president of marketing/communications at Express Personnel Services, the world's largest privately-held staffing firm.
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