As euro zone crisis continues and economy stutters, management must ensure that employees have the full picture, says Mercer.

Mercer has outlined eight principals of employee communication that managers should follow during the current economic uncertainty to help bolster employee morale and engagement.

“Turbulent times are an opportunity for leaders at all levels in a company to display true leadership strength,” said Zillah Bingley, EMEA Head of Mercer’s Workforce Communications and Change business. “Leaders have a crucial role to play in instilling confidence and encouraging employees to focus on the areas that will strengthen the business and help secure its future.”

“However,” she continued, “the incessant drip of dire economic news is having a wretched impact on employee morale. Six months ago, many felt that we were emerging, albeit cautiously, from the shadow of the previous economic crisis. Rather than finding ourselves in the brighter uplands that many expected, we are now scrambling to avoid falling into the depths of another recession. Employees are distracted and confused. They are concerned about job security. They are unsure about the financial strength of their employer and want to know about the health of their retirement savings. They want to maximise their earnings and career potential within their organisation. Management needs to supplement the focus on financials with consistent and regular employee communications.”

Mercer has highlighted eight tips for management when communicating with employees in a crisis.

1. Throw out the rule book. Conventional wisdom says: “when you have nothing to say, say nothing.” In this new world of semi-permanent uncertainty, to a large extent the opposite is true. Whilst you may have nothing to say, tell your employees that and given them a timeline for further information. “Keep communicating with your employees and fill a communication vacuum with accurate information, rather than allowing rumour and conjecture,” says Ms Bingley.

2. Don’t assume that you have control. Long gone are the days when CEOs could control what employees read or heard about their company. The internet, 24 hour news, blogs, instant messaging provide instantaneous worldwide communication which means employees may know things about your company almost as soon as (or even before) the management team. “It goes without saying that employees’ confidence in their company will take a knock if they believe that the story you are telling the outside world is different from the one they are hearing from you. Keep your internal and external communication consistent,” says Ms Bingley.

3. Tell employees what won’t change. Use the core foundations of your business as a way of instilling confidence in employees, says Mercer. “Let them know that, while markets may be in a maelstrom, your core values, the way you believe people should be treated, your belief in outstanding customer service will not change,” says Ms Bingley.

4. Be honest about what will change. Address employees’ concerns head on and acknowledge what may happen in the future. “Set out possible outcomes and what you are doing to make them happen if they are positive,” says Ms Bingley, “or what you will do to avoid them if they are negative.”

5. Describe positive outcomes. Be clear about the things that employees can do to make a difference. The things that will keep the business going, maintain cash flow, keep expenses down and retain customers. Employees should be given a 10 point action plan of the things that should be on their minds every day.

6. Make all managers communication leaders. Surveys to determine who people trust as a source of information continue to show that authority figures (including CEOs) are rated some way below ’people like me’. Use this to your advantage. “Get your employees talking with their immediate managers and to each other whilst supporting these discussions with official materials and training,” suggests Ms Bingley.

7. Educate your employees. Employees are seeing a lot of confusing and possibly conflicting information in the media. Employers can help them understand what’s happening – and reduce their uncertainty – by providing basic education in financial matters. “It will help you through these troubling times and help develop a workforce which is more commercially astute for the future, and ensure that customer-facing employees are able to answer questions with confidence. You can also give them Q&As that include points about how the company is affected by the market conditions,” says Ms Bingley.

8. Walk the walk and talk the talk. “Leaders should be out in the workplace showing employees what to do and how to behave,” says Ms Bingley. “In a time of uncertainty and change, leaders don’t just communicate the message verbally; they are the message and demonstrate that through the way they behave.”

“Keep communication open, available and consistent. Be honest with employees about what will and what won’t change. Describe the positive outcomes and what employees can do to enhance these. Educate your workforce so they, and your customers, feel confident. Communication should be clear, consistent and candid,” concluded Ms Bingley.