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WASHINGTON, D.C., Dec. 19, 2008 — U.S. employers are stepping up their communication to workers about financial performance and solvency to help alleviate growing levels of stress and anxiety caused by the recession, according to a new survey by Watson Wyatt, a leading global consulting firm.

Overall, findings show that 77 percent of respondents have already sent out or are planning communication on the impact of the financial crisis. More than two-thirds (69 percent) of these employers cited easing employee anxiety as one of the top two goals of their crisis-related internal communication, while nearly one-third (32 percent) cited earning employees’ trust. Watson Wyatt’s survey, “Communicating to Employees During the Current Financial Crisis,” was conducted in December 2008 and includes responses from 92 employers.

According to employers, job security and company performance and solvency are at the top of employees’ concerns. While eight in 10 (80 percent) employers who are communicating about the financial crisis noted they have already sent messages to employees about company performance and solvency, only 38 percent have communicated about job security.

“Employers clearly understand the impact the financial crisis is having, not only on their business but on their employees as well,” said Kathryn Yates, global director of communication consulting at Watson Wyatt. “With no end to the recession in sight, communicating regularly with employees will be critical for companies to keep their workers engaged and productive.” 

Employers Are Communicating on Topics of Concern to Employees

	Issues employees are asking about	Topics employers have sent out communications about in the past 60 days
Job security	43%	38%
Company performance and solvency	36%	80%
Bonuses or other incentive pay	28%	34%
Customer impact	25%	49%
Benefit programs	15%	46%
Base pay	14%	17%

 

Findings show varying perceptions of the effectiveness of employers’ communication to date: Approximately two out of five respondents perceive their communication to have been moderately or very effective in maintaining/improving employee productivity (44 percent), reducing employee stress/anxiety (43 percent) and improving employee engagement (40 percent). However, many respondents simply do not know how effective their communication strategy has been. For instance, 27 percent cannot say how effective they have been in improving employee engagement, and 38 percent cannot say how effective they have been in maintaining or improving employee productivity.

Of the companies that have already started to communicate with their employees, nine out of 10 (91 percent) say the messages are being delivered by senior management. Only a little over half the companies surveyed cite HR (59 percent) or line managers (56 percent) as the source of the messages.

“Communication can be a powerful tool in these troubled times, especially when supported by different levels of management,” said Yates. “But it’s important to keep the specific business context in mind and constantly monitor the effectiveness of the messaging.”

Other findings:

• Town hall meetings, staff meetings and other face-to-face discussions are the most popular medium of communication, cited by 87 percent of respondents and closely followed by e-mail, cited by 86 percent. The company intranet is a vehicle also, cited by 76 percent of respondents. Social media, despite being a relative newcomer, is being used as a delivery tool by 24 percent of respondents.
• Of the companies that have started to communicate with workers about the impact of the crisis, 62 percent plan to incorporate their messaging into their ongoing communication strategy for an indefinite period.

For more information, visit www.watsonwyatt.com/communicatingfinancialcrisis

For further information, please contact:

Ed Emerman
609.275.5162
eemerman@eaglepr.com

Steve Arnoff
703.258.7634
steven.arnoff@watsonwyatt.com

About Watson Wyatt Worldwide
Watson Wyatt (NYSE, NASDAQ: WW) is the trusted business partner to the world’s leading organizations on people and financial issues. The firm’s global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,600 associates in 32 countries and is located on the Web at www.watsonwyatt.com.