We’ve all been inundated recently with the flurry of sensational press and panic surrounding our ailing economy, $4.00 a gallon gas, and the financial crisis on Wall Street. Even if you weren’t worried three weeks ago, you probably are by now; not so much because your own world is tangibly crumbling (although for some it admittedly is), but because of how much pessimistic media coverage there has been. It’s like a dark sense of foreboding lingering in the shadows of our collective subconscious.
Besides the sense of uneasiness that has entered our personal lives, the atmosphere in many organizations has simultaneously become more tentative. Employees have become less trustful of management (possibly made worse by recent stories of out-of-control CEO compensation) and more uncertain about the future of their respective companies. In companies where there have been layoffs or hiring freezes, remaining associates are constantly monitoring the rumor mill for any new signs of news that could negatively affect their futures. Even in healthy organizations, nobody seems to feel quite as secure as they did at his time last year.
Sadly, there isn’t much we can do to solve Wall Street’s woes or lower the price of gas. But there is a way to soften the impact of pessimistic press coverage that predicts catastrophe at every opportunity. It’s called information ...and it goes a long way towards keeping employees focused and engaged. On a macro level, most organizations could do a significantly better job helping their employees understand their company's financial status, what leaders are doing to minimize business risks, and more importantly, what they're doing to prepare for the eventual economic recovery. They also need to understand the rationale behind the sometimes difficult decisions that must be made. Employees (and managers) are people and people almost always respond to their environment emotionally before they do intellectually. Reassurance from company leaders that they have a solid business plan and are doing everything possible to protect their people goes a long way to protecting productivity.
Sometimes a solid plan forward means difficult short-term decisions. It is especially important during downsizings to let your retained employees know that you took care of those who left with compassion and in a manner that kept their dignity intact. Visible demonstrations of fairness and compassion during these events serve to keep your remaining employees engaged and productivity at optimum levels. It also helps prevent a climate of fear that may lead your stars to start looking for better options on their own.
When doubt is in the air, share more, not less. Although it’s not going to change the realities of the external business environment, a coordinated, well-thought-out internal communication strategy reaffirms mission, facilitates clarity, and instills confidence. The alternative is to do nothing and let people invent their own realities. Given the human brain’s bias for negative interpretation, this is a non-strategy that few organizations can afford right now.
