Hot Topics

In Tough Economic Times, No News Is Bad News

While it’s tempting to adopt a “wait and see” attitude when the economy goes south, leaving employees in an information vacuum is the last thing you should do during this time. Here are some tips for keeping your workforce focused and engaged during a recession:

1. Have a battle plan: Establish a strategy for how your organization wants to address economic issues, and ensure that executives, human resources, communications staff and managers/supervisors are on the same page when it comes to messaging.

2. Stick with straight talk: Be candid with employees about how market conditions are affecting your organization. While this approach may entail discussions of potential layoffs or site closures, clear, honest updates will give employees the opportunity to know what’s happening, what options they have and what they can do, for themselves and for the company, during this difficult period.

3. Engage executives early on: Leader visibility and accessibility are essential to keeping employees focused during times of uncertainty. Create opportunities for executives to convey strategic messages to your workforce (through email blasts, videos, town halls, for example), before employees start asking questions.

4. Prep your managers: Managers play a pivotal role in keeping employees connected during crisis situations. That said, not every manager is a born communicator. Make sure you provide your front-line staff with the support, information and coaching they need to be effective in their one-on-one and team communications.

5. Keep your ear to the ground: Leverage input from front-line managers and supervisors, as well as feedback from sensing tools, such as pulse surveys and brief online polls, to stay in touch with what employees are talking about and what they need to know.

6. Share good news, when you have it: Remember — we’re in a downturn, not in mourning. Continue to acknowledge and reward positive achievements, by the organization and by individuals.

While we can’t control uncertain market conditions, we can be sure that employees have the benefit of honest and timely communications to support them through tough economic times.

Financial Education Is a “Can’t Miss” Investment

With the country heading towards a recession, promoting your company’s 401(k) may be the last thing on your mind. In reality though, providing financial communications to your workforce is more important now than ever. Here are some ideas on how to invest in your employees’ financial future through smart internal communications:

1. Start with the big picture: Help employees understand how their company benefits, along with personal savings and Social Security, work together to build their retirement nest egg. Total benefits or total compensation statements are effective tools for capturing an individual’s financial picture.

2. Target your audience: Financial priorities for a new hire straight out of college are vastly different from those of an employee five years from retirement. Targeting your financial and retirement communications by life stages helps ensure that employees receive meaningful educational material.

3. Keep it in the family: Retirement decisions often involve input from an employee’s spouse. Consider offering onsite financial/retirement planning seminars at locations and hours convenient to employees and their families.

4. Increase financial literacy: Provide financial education as well as retirement education. Company-provided materials (online and hard copy), along with external resources (for example, www.mymoney.gov, www.CNNmoney.com, www.fool.com), can help employees grasp the basics regarding money matters.

5. Don’t overlook your EAP: When educating employees about your Employee Assistance Program (EAP), be sure to mention if it provides free or low-cost financial planning consultation as part of its suite of offerings. Many employers miss out on the opportunity to market this convenient and valuable service.

Whether it’s a bull or bear market, providing financial education is an investment that always pays off, both for you and your employees.