How to Stay Ahead of the Downturn with Recession Proof Communication

Much has been written about the slowdown and its impact on our lives. However, there are few suggestions for organizations to cope and help them understand what employees seek.

As an internal communications practitioner, I think there are trends which organizations and communicators need to recognize, ideas for 'recession proofing' your communication and best practices from the industries which one can practice.

What is a recession? According to Wikipedia, a recession is a "general slowdown in economic activity in a country over a sustained period of time, or a business cycle contraction." Production as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes and business profits all fall during recessions. The bottom-line is that citizens are insecure and organizations don't have too much of an insight as to when the tide will turn. This in effect means that we need to revisit Maslow's hierarchy. The focus needs to come back to the basic factors - food, water and security, corroborated by Watson Wyatt's survey where employees seek information about job security.

During a recession, organizations make knee jerk reactions based on how they see the markets panning out which can be detrimental to employee morale and customer engagement. Organizations go after support functions and resize and reduce budgets, freeze benefits, curtail training and avoid engaging with employees. Very often, in their quest to get 'leaner' and 'sharper', organizations lose the 'human' touch'. Employees have good memories and these actions are always held against the business. I am aware of organizations cutting down on something as basic as toilet paper but allowing off sites at external venues to continue. Not surprisingly, trust is eroding for senior leadership (according to Edelman's Trust Barometer) and organizational communication tools.

James K. Harter, Ph.D., Gallup's Chief Scientist of Workplace Management and Well-Being recently stated " in good times and bad, low engagement reduces performance and profit and under the current circumstances, many companies can't afford to let those drop". A Watson Wyatt's report indicates that job security is top of mind for most employees while what the organizations continue to communicate is around solvency, performance and other issues; a clear disconnect.

According to a Towers Perrin study, more and more employees are asking for the truth - about the future of their company, pay, benefits and job. There seems to be a disconnect between what employees are seeking and how companies are perceiving their information needs.

So what does 'recession proofing' mean?

In my opinion, it involves reducing uncertainty, improving confidence and focusing on outcomes. It also means supporting the organization stay on course to be successful. As Timothy P. Flynn, Chairman, KPMG International points out "the economic crisis gives organizations an opportunity to examine every aspect of their business model and lay the foundation for sustainable growth and improved competitive advantage." Organizations need to reinforce the mission and values even more. This is also a time to involve and keep the employee at the forefront of all your communication.

I personally believe all is not gloomy. India and China are with growing economies and the global market hopes to ride on their success. The recent Tata Nano launch had the market in raptures. Even the steel market is looking up. A leading consulting and interactive firm created a campaign to focus on its 10^th year of operations and rally its employees around this key milestone. By focusing on the positive, employees were engaged in driving the organization's goals and strategic vision.

Who's getting it right

Numerous best practices involving 'zero budget' ideas make overcoming this recession easier than we all thought. For example, a leading global IT major has its top 50 business leaders go online everyday and engage on social media networks. Similarly, a well-known audit brand leverages Facebook to encourage college graduates to join them. An established consulting and outsourcing giant has robust systems and templates that reduce turnaround time and delivery of communication collateral. Investing in internal 'ready to use' tools and resources can make life easier and less cumbersome for communicators. A global personal hygiene organization now generates over 50% of its product ideas by 'crowdsourcing' a huge shift in thinking from the earlier insular perspective. A leading global IT services conglomerate created its blogging policy with the support of its employees. It also has them blog on their website. A simple idea such as where leaders are encouraged to meet with one employee per day face to face ensures zero cost engagement. The ruler of UAE and the Vatican are also using social media tool to reach out to their stakeholders even more. Consistent communication is the key among best employers according to the Outlook Business - Hewitt Associates study - 2009, a relevant aspect for organizations to recognize.

And, keep in mind, that understanding risks such as e-crime, espionage and privacy before leveraging these social media tools and ideas, will further ensure success in a recession proof world.

Practice long-lasting communication

To summarize, the global downturn has posed numerous challenges for organizations and employees alike. That said, downturns may not last, but organizations that communicate effectively will. It is important to focus on the positives, craft consistent messages, reinforce often, communicate directly and focus on the positives while involving employees.

Last but not least, it is vital for organizations to revisit the core of their existence and the core values that will sustain them in the long run.