Given the economic challenges facing small and large businesses today (check out article on marketing during a recession, here), effective communications with employees is quickly rising in importance among managers and ownership.  A recent survey of executives at 425 large businesses (conducted by Message Bank, LLC) showed that these senior managers are increasing their communications efforts with shareholders and customers (as expected) but also with employees.

As reported by Ragan.com, the survey results provided the following insights:

  • Companies are increasing public contact between senior executives and employees, shareholders, analysts and the media through interactive conference calls and webcasts.
  • Many more companies are using speeded-up communications to reach employees in the worsening downturn and, in some cases, relying on a crisis communications plan to do this.
  • More than 45 percent say they rely on collaborative communication (social media, long-distance telephonic town hall meetings, live audio and video webcasts) between C-suite executives and front-line management to maintain morale and foster openness.
  • 72 percent say that acceptance of new communications technology by management, and the ease of use of that technology, are reducing the reliance on travel and on-site corporate events to get messages to employees.
  • 68 percent say that their companies have issued a mandate to reduce spending on travel and entertainment

Managers seem to be gunshy about being accused of hiding bad news and not leveling with employees.  Social media plays a part in all this, no doubt.  Word spreads quickly through the blogosphere – and bad news seems to spread even more quickly.

The take-away for small and mid-sized businesses: whiz-bang communications technology aside, the practice of engaging employees in forthright discussion about the status of your business and the role they play in keeping it healthy (or making it better) is a good idea.  Owners and managers have to get used to the idea that turbulent times call for clear-eyed and firm leadership.  Such leadership reassures employees and allows them to focus on the things they can control and change for the better.

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