Employee Communication In Tough Times January 2010

www.allmancommunication.com

Survey Background  Survey undertaken on line in November/December 2009 and at same dates in 2008  Aim was to obtain insight into how the recession is impacting employee communication  Approx. 60 responses received, mainly from senior in house internal communication and HR specialists across a wide range of businesses and locations

61 Responses Received For 2010 Survey 61 responses received – from Internal Communicators, HR Specialists and Executives.

Q: Has Your Business Been Negatively Affected By The Economic Slowdown?

73% of businesses surveyed have been negatively affected by the recession in 2009 (v. 68% 2008)

Q: How Will Your 2010 Spend on Employee Communication Change Compared to 2009?

60% “Although there are no plans to increase communications budget, … communication is seen as a high priority that is crucial” 50% 40% 30%

56% 56% 35%

2009 2010 “Need to engage employees other than financially has gone up leadership agenda”

24%

20%

20%

10%

10%

0%

Increase No change Decrease

“Looking for cost effective methods to communicate and target audiences more ” Less than a quarter expect budgets to decrease

Q: Will staff numbers remain the same in your employee communication team?

“We have already felt the effects of the downturn with a restructure of the internal comms team in 2009” “Due to budget constraints, the first areas affected are back office – i.e. comms, so cuts will be made”

80% 70% 60% 50% 40% 30% 20% 10% 0% 67% 64% Same 16% 6% Increase 27% 20% Decrease 2009 2010

Most teams unaffected, however 20% to be cut less than last year

Q: Are There Plans to Change the Type of Communication Activity Delivered to Employees in 2010?

“There will be less ….” “We will need to communicate more with our employees to ensure they are consulted and informed about the changes that will happen”

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 71% 2009 29% 88% 2010 13% Yes No

88% of respondents are planning to change how they communicate to employees = a revolution!

Q: What are Planned Changes on Print Spend (e.g. newsletters) in 2010 Compared to 2009?

“We have stopped sending out a hard copy newsletter and now do one corporate newsletter per month”

60% 50% 40% 30% 20% 10% 0% 18% 9% More 45% 51% Same 45% 31% Less 2009 2010

A third of respondents plan to spend less on print in 2010

Q: What are Planned Changes on Events Spend (e.g. conferences) in 2010 Compared to 2009?

“We are planning to increase the intensity of communications next year … but the expensive options will depend on budget available” 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

24% 24% More 39% 44% Same 36% 31% Less

2009 2010 A third of respondents plan to spend less on events in 2010

Q: What are Planned Changes on Face to Face Spend (e.g. team meetings) in 2010 compared to 2009?

“We need to be prepared to give colleagues opportunities to raise their concerns” “It is forcing management to be sharper and more in tune with what employees need to know” “Main challenge is to engage employees so that they understand the future of the organisation” 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

82% 71% More 13% 20% Same 5% 8% Less

2009 2010 Very strong feedback that face to face spend will again increase again in 2010

Q: What are Planned Changes to on Online Spend (e.g. intranet) in 2010 Compared to 2009?

“ Will start to use social networking, podcasts and snap comms” “ We have an HR website and intranet but it does not encourage people to talk ” 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% “We will do more of the low cost options – developing our online comms and face to face” 68% 77%

More

29% 17%

Same

3%

Less

6% 2009 2010 Very strong trend that 77% of businesses are planning to increase on line communication spend

Summary of Key Findings  88% of respondents plan to change the type of communication activity they will deliver in 2010:  26% to reduce spend on Print  30% to reduce spend on Events  71% to increase spend on Face to Face Comms  76% to increase On Line spend

Five Quick Tips  Continue to communicate the company’s vision, strategy & progress » Show that leadership has a long term plan » Link short term actions to it (i.e. not knee jerk) » Remind employees of their role in delivering it  Ensure regular face to face meetings continue to take place » All scheduled team briefings and comms meetings should be maintained. Avoid a vacuum or room for speculation.

 Create additional opportunities to listen to employees » Undertake informal walkabouts, focus groups and/or pulse surveys  Ask employees to put forward their own ideas » Seek ideas for things like maintaining engagement, winning new business or reducing costs  Celebrate successes, however small » e.g. keeping or winning business, receiving thanks from a customer, overcoming challenges, winning awards, passing exams, etc.

The Three Cs of Communication

Culture:

Leadership & Management Communication Skills Relationship Building & Conflict Resolution

Content:

Mergers & Acquisitions Major Change Programmes Business Performance Crisis Handling Media & Presentation training Communication & Stakeholder Audits

Channels:

Magazines, Mailers & Printed Materials Websites, Intranets & Social Media Vision, Values & Business Strategy Building Brand Passion Employment Brand Conferences & Events Video & DVD Employee Surveys & Feedback Channels Team Briefings & Cascades

Lesley Allman, MD, Allman Communication •Over 20 years of internal & external corporate communication experience •Director of Communication at Coors Brewers (formerly Bass) and previously a Board Director of Rote PR (part of Shandwick plc) • Founded Allman Communication 2006 •BSc in Management and MBA (2002) including dissertation on employee engagement •CIPR / CiB member and frequent communication conference speaker

Some Of Our Awards •

Nominated 2010 CiB Central Awards

– Strategy/Campaign Of The Year •

Nominated 2010 CiB Central Awards

– Agency Team Of The Year •

Class Winner in CiB Central Awards 2009

– Best Agency •

Finalist in CIPR Excellence 2008

– Outstanding Small Consultancy •

Finalist in PR Week Awards 2008

– New Consultancy of The Year •

Class Winner in CiB Central Awards 2008

– Strategy: Merger & Change •

Silver Award in CIPR Pride Awards 2008

– Outstanding Small Consultancy

For further information:

[email protected]

Tel: 07808 095803 www.allmancommunication.com