7/11/2005

Employee Communication—Low Cost, High Return
By Heather Edelman

As published in September 2004 issue of “Contact”, a publication of New England Women Business Owners. 

We often associate the word “investment” with large sums of money.  But there are many ways to invest in employees without spending a lot of money.  One of the most important low cost/high return investments is communication.  Communicate with groups of employees and with individuals, formally and informally, and always communicate openly, honestly and frequently. 

As a business owner or executive, begin by articulating the vision, mission and values of the company.  The vision creates an image of what the company intends to become and to achieve at some point in the future.  It should inspire.  The mission statement describes the direction and purpose of the organization, as well as the major goals and priorities.  It should motivate.  The core values define the guiding principles that influence all actions within the company.  These values are the soul of the organization. 

Discuss the company’s strategic goals, which support the company’s vision and mission.  Help employees understand how their jobs contribute to these goals.  Communicate expectations.  Define each job—its overall purpose and key responsibilities.  Set specific, measurable goals for each employee.  Ensure their goals are aligned with the company’s strategic goals.  Most importantly, provide performance feedback, not just once a year but continuously.  Feedback, when delivered appropriately, motivates employees to develop and stretch, which benefits them and the company.  Talk about what needs improvement but also recognize accomplishments, even the small ones.  Sadly, too few managers take the time for a simple “thank you” or a “job well done”, no-cost opportunities that go a long way to showing appreciation for good work. 

On a regular basis, update employees on the company’s progress.  Share the positives and the challenges.  When leaders are candid with employees about the state of the business, employees feel respected and valued.  Assuming the right Human Resource programs and systems are in place to motivate, recognize and reward, employees will embrace the challenges and help find solutions to the problems.   

Effective communication happens only when it is bidirectional—to and from executives.  Develop active listening skills where the focus is on what the other person is saying.  Set aside time to walk around and talk with employees.  Give them the opportunity to get to know leaders as people.  Create informal opportunities to facilitate communication in ways that fit the company’s culture.  Celebrate birthdays, holidays and company milestones, take a break to welcome the weekend, participate in a group activity or sport.  Invite small groups of employees to join the owner or executive for lunch.  Ask employees to share questions or concerns about the company.  Address each issue candidly.  If the leader makes a commitment, make sure it happens.  Nothing is more critical to effective communication than “walking the talk”.  Simply put, leaders need to say what they mean and do what they say, or let employees know why they did not.  Few things destroy a leader’s credibility faster than inconsistency between words and actions. 

Invest time in communicating with employees.  It can yield substantial returns at minimal cost.

Heather Edelman is president of Strategies For Growth.  She can be reached at (617) 332-2277 or heather@strategiesforgrowth.biz.