Effective Communication Can Drive Employee Engagement, Help Retain Top Performers, According to Watson Wyatt

WASHINGTON, Nov. 9 /PRNewswire-FirstCall/ -- In a business environment that remains tumultuous, companies with highly effective internal communication programs are better placed to keep employees engaged and retain key talent, according to a new survey by Watson Wyatt, a leading global consulting firm.

"As the economy continues to shift, keeping employees up-to-date on how the company is responding, and how they are affected, will help insure against their becoming demoralized and disconnected," said Kathryn Yates, global leader of communication consulting at Watson Wyatt. "Effective communication helps engage employees, and that has positive implications for productivity and the bottom line."

The survey found that 61 percent of companies that are highly effective communicators report that their managers are effective at dealing openly with resistance to change, compared with only 18 percent of low-effectiveness communicators. Similarly, 64 percent of highly effective communicators report that their managers are effective at addressing the needs and concerns of their current employees, compared with only 22 percent of companies that are low-effectiveness communicators.

The 2009/2010 Watson Wyatt Communication ROI Study, conducted in April 2009, included 328 organizations that collectively represent 5 million employees from various regions around the world.

The research identified the best practices of companies that are highly effective communicators. These include:

1. Communicate how employees will be affected as the business changes.

More than six of 10 companies (62 percent) that are highly effective communicators have a clearly defined employee value proposition (EVP), compared with just 23 percent of less effective communicators. The EVP, or "employment deal," lets employees know what the company expects from them and what they can expect from the company. Fifty percent of highly effective communicators also align the EVP with their external brand, while only 16 percent of less effective communicators do. Surprisingly, only 14 percent of companies are revising their EVP in the current economic environment.

"Many companies take steps to protect their bottom line during challenging economic times, including modifying, eliminating or drastically altering their employee programs," said Yates. "Employees will be aware that their EVP is changing -- from the company culture to their own rewards and benefits. They'll be looking to management to redefine and communicate the 'new' employment deal, to help them understand what they need to do differently in the future and what they can expect from the company in return."

2. Trust and train leaders to talk about change.

For messages about business change, face-to-face communication channels such as town halls and staff meetings are preferred over social media, the intranet or printed materials. The survey found that 73 percent of highly effective communicators say their managers are effective at supporting the executive management vision through their actions, compared with only 29 percent of low-effectiveness communicators.

"Managers need some time to come to terms with the organizational changes on a personal level before they're asked to help employees," said Yates. "At that point, they can reasonably be expected to communicate and endorse changes."

3. Follow up with measurements and metrics.

Highly effective communicators are two-to-three times more likely to have a documented communication strategy than low-effectiveness communicators. Fifty-three percent of highly effective communicators are including more communication outcome metrics in their strategies, compared with only 34 percent of low-effectiveness communicators. Despite this, a relatively high percentage (43 percent) of all respondents report having no formal measurement or assessments.

"Highly effective communicators measure to see exactly what they are accomplishing at each step," said John Finney, senior communication consultant. "Communication does not exist in a vacuum -- it always serves a larger business purpose. The best-performing companies plan communication strategically, like any other business area."

To view the 2009/2010 Communication ROI Study report, visit www.watsonwyatt.com/CommROI.

About Watson Wyatt
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 7,500 associates in 33 countries and is located on the Web at www.watsonwyatt.com.