Enhancing corporate credibility: do you need to take the 'spin' out of employee communications?

Employees are hungry for the truth from their companies, but only half are satisfied with what they're being fed.

That's the reality captured by Towers Perrin's recent study of the credibility of corporate communication. And it raises some important questions for those of us who communicate with employees for a living.

Are we, even as we try to convey the truth, falling into a "spin zone" that contributes to employee skepticism?

Are we in tune with our audience enough to recognize the danger signals of falling into the spin zone?

What simple steps can we take to get out of the spin zone and, if necessary, restore credibility to the communications we create?

STUDY RESULTS

Results from the survey of 1,000 "average" U.S. workers tell us that companies may be trying too hard to spin their internal communications and, as a result, may be undermining their credibility with many employees.

Employees want plain talk that makes it easy to evaluate issues of deep importance to them. For many employees, the company is their only source of information on many personal topics, including career, retirement and health care.

Although other research shows that Americans in general have become increasingly cynical and suspicious of major organizations, both public and private, most corporate leaders would likely be concerned that only half of employees believe what their companies tell them. Perhaps more telling is that the workers surveyed believe companies are more truthful with shareholders and customers than with employees.

Consider these survey responses.

* Half of respondents believe their company generally tells the truth to employees ... and half do not.

Employees are looking for greater transparency from their employers, but only half think they are getting it.

The survey responses show that many employees do not feel they are getting a full and accurate picture from their company, even though the vast majority of employees believe they are ready to hear the truth about their company, pay, benefits and jobs.

Of course, where to draw the line in trying to be open and honest with employees is a difficult call, depending on the organization's issues and culture, and whether other stakeholders may be affected. But organizations that fail to address these concerns risk damaging their credibility even further with an increasingly important, and at some point mobile, group of stakeholders.

* Employees believe their companies are more honest outside the organization.

This is a tough one. Employees who participated in the survey believe their company is less truthful in communicating with them than with customers and shareholders.

At the same time, 55 percent of respondents feel their organizations try too hard to spin the internal story instead of telling it to them straight. Now, this isn't the same as saying these employees believe they are deliberately being lied to, but it's hardly the kind of trust that's necessary to build employee engagement and commitment to a company.

* Demographic differences in perceptions of truthfulness to employees suggest a "cynicism" factor.

In general, short-service employees (with fewer than five years of service) are more likely than longer-service employees to view their company's communications as credible.

Younger employees (under age 35) are more likely than those age 50 or older to believe their company tells them the truth. Higher-paid employees are more likely than lower-paid workers to view their company as a credible source of information.

These findings suggest something many communicators have known for years--they need to carefully analyze and segment the audience to ensure that messages are understood and believed.

* Employees feel their companies are least truthful when communicating about the "deal,"

Employees want plain talk they can easily evaluate on personal issues of deep importance to them. Few issues are as personal, or important, as what an employee receives from a company in return for what the employee contributes.

Because companies are many employees' sole source of information on personal topics such as career, retirement and health care, it's troubling that survey respondents feel their employer is least truthful when communicating about the fundamental "deal" between the company and its employees--what the company needs from employees and what the employee can expect to receive in return.

Indeed, only half of employees surveyed believe the company is open and honest in communicating what the organization needs from employees, and well under half (39 percent) believe the company is honest in communicating what the organization offers.

* Employees do not have confidence in the truthfulness of communication about the business.

Of course, any understanding of the elements of "the deal" requires a fundamental understanding of the business issues a company faces and the strategy it follows.

Unfortunately, fewer than half of the survey respondents believe their employer is completely open and honest in communicating with employees about important business issues like corporate strategy, financial results and the competitive landscape.

Many communicators spend a lot of time helping focus employee communication on the line of sight between employees and the business to help drive performance improvements, teamwork and esprit de corps. But it's hard to engage employees in the business if most of them put little faith in the business information they receive from their organization.

* Pay and benefits communications are the most trusted type of information provided by the company.

According to the survey responses, pay and benefits communication are the most trusted types of information among U.S. employees. This finding was surprising.

The "why" behind this response may be that these topics, although highly personal, tend to be concrete and easy to verify. Or the response may suggest that corporate human resource departments, in collaboration with corporate communicators, have done a better job than business leaders in telling a consistent and credible story.

Whatever the reason, this area of relative strength in employee communication can be leveraged to support other communication objectives.

* Almost half of respondents believe they receive more credible information from their immediate manager or supervisor than from the company's CEO.

This credibility gap should be a concern.

As communicators, we carefully manage the appearances and messages of our senior leaders. But according to survey respondents, our plan is not quite working. The CEO is rated below other sources of information in credibility.

At the same time, other recent research shows that senior leadership's interest in employee well-being is the most important driver of employee engagement. Employees' preferred and most credible sources of information are their immediate supervisor and their colleagues. On the other hand, companies can take some comfort in that internal company media are viewed as more credible than the external media, the Internet or labor unions.

NEXT STEPS

So what can a communicator do? Here are a few proven approaches that, in time, can help enhance the effectiveness of employee communication and boost the credibility of leaders and managers.

* Take it from the top. For any organization to communicate effectively, senior leadership must set the tone by being visible, accessible and open. Top leaders should be walking examples of clear, candid communication.

* Understand your audience. Gut feelings are fine as they go, but high performing companies are more likely to use objective measurement techniques (including surveys, focus groups and other feedback channels) to take the ongoing pulse of communication effectiveness.

* Align company messages and information channels, Employee confidence in the company's credibility is seriously undermined when the company intranet says one thing and management says another. A periodic audit of communication processes and media can help manage messages and channels.

* Train leaders and managers, Although some people are born communicators, in most cases communication is a learned skill, and one that traditionally hasn't been emphasized among managers moving up through the ranks. High-performing companies tend to focus considerable attention on communication skills and training in their leadership development programs.

* Remember to tell the whole story. Many organizations confuse information with communication. They concentrate on disseminating facts rather than providing the context and business rationale for company decisions and actions. The "why and how" is critical to understanding the "what."

* Ensure a two-way dialogue, Providing frequent opportunities for two way communication demonstrates leadership's interest in employees' opinions and well-being. This can help create an environment of mutual trust, accountability and responsibility that's important to engage people and win their discretionary effort.

* Expect the unexpected. Sooner or later, something will go wrong in every organization. Having an effective crisis communication plan in place is essential for managing employee actions, reactions and perceptions of the organization during emergencies.

ARE YOU IN DANGER OF ENTERING THE SPIN ZONE?

Ask yourself a few questions:

* When have you asked your employees if they believe what your organization communicates? How have you adjusted your message and approach?

* When you release communications to employees, what do you hear? Or do you hear nothing (a clear signal of the spin zone)?

* What do you read about your company in public chat rooms? And how does it differ from what people tell you? A big gap may indicate perceptions of spin.

* What do you read about your company in the external media that you do not discuss in the internal media? The longer the list, the greater the chance of spin.

* How often do you draft a message without a clear point of view? The less clear the message, the greater the chance for spin.

* How much "corporate-ese" creeps into your draft during the edit process? The less plain and simple the language, the greater the likelihood of spin.

"My company generally tells the truth in its communications to ..."

Shareholders

Agree       60%
Mixed       28%
Disagree    12%

Customers

Agree       58%
Mixed       29%
Disagree    13%

Employees

Agree       51%
Mixed       30%
Disagree    19%

Note: Table made from pie chart.

"My company generally tells the truth in its communications to
employees."

                        % Agree    % Mixed    % Disagree

Tenure
Less than five years       59         25           16
Five or more years         48         32           20

Income
More than $100,000         56         28           16
$50,000-$100,000           55         28           17
Less than $50,000          45         32           23

Age
Less than 35               66         25            9
35-49                      49         30           21
50 or older                44         34           22

Note: Table made from bar graph.

"To what extent do you believe/understand the communications
you receive from your company are open and honest for..."

                                 % Believe
                               communications    % Understand
                                are open and     communications
                                   honest

My Benefits                          64                73
My Pay                               59                79
My learning and
  development opportunities          52                59
What the company needs
  from employees                     50                64
The company's competitive
  Environment                        49                59
The company's financial
  results                            46                52
My career opportunities              44                59
The company's financial
  Challenges                         44                52
The company's business
  Strategy                           42                47
What employees get in
  return for doing what
  the company needs                  39                53

Note: Table made from bar graph.

The survey shows the strongest trust in internal, face-to-face meetings
with supervisors.
                                       % Agree    % Mixed    % Disagree

I receive more credible information
from my supervisor than from my CEO       48         23           28
I receive more credible information
from my company in face-to-face
meetings than in formal media             45         30           25
I receive more credible information
about my company from the external
news media than the internal              27         23           50
company media

Note: Table made from bar graph.

"I am ready to hear the truth about the future of ..."

                       % Agree    % Mixed    % Disagree

My company                94         5            1
My pay and benefits       94         5            1
My job                    93         6            1

Note: Table made from bar graph.

About the Study

Towers Perrin's online survey of 1,000 working Americans was conducted by Harris Interactive. The survey sample was designed to represent a typical cross section of workers--the "average worker"--in U.S.-based organizations with at least 1,000 employees. The sample cuts across a broad range of industries and includes a statistically valid range of ages, education levels, genders and incomes. For a complete report of the study findings, send an e-mail to [email protected].

Mark Schumann, ABC, is the global communication practice leader at Towers Perrin HR Services, one of the world's largest management, human resource consulting and administration firms. Schumann is the winner of 13 IABC Gold Quill awards, as well as the IABC Communicator of the Year designation for Dallas and Houston. Schumann is a past member of the IABC Executive Board and the IABC Research Foundation Board of Trustees and can be reached at [email protected].

COPYRIGHT 2004 International Association of Business Communicators
COPYRIGHT 2005 Gale Group