Covid-19 recession: Employees need clarity on consequences?

Even though the Federal Council has announced the first easing of measures to combat Covid-19, recession is already on the mind of many business leaders. This is another major challenge for corporate communications: how do you communicate in these times without making anxious employees even more insecure?

Clarifying the consequences for individual employees

With the exit strategy announced on 16 April 2020, the Federal Council has created a little more clarity about possible ways out of the crisis, at least for some organizations. However, many companies are not yet able to accurately assess the consequences of the global lockdown. All they know is that recession is coming, along with the next reorganization. In this ongoing climate of uncertainty, discussions on how to tackle the recession have been commonplace.

For all the talk, many companies are still failing to communicate on what to expect now and what the crisis ultimately means for individual employees. These questions must be addressed as quickly as possible so that employees understand how they are affected by the consequences. However difficult the news – the faster individuals understand how they are affected, the faster the entire workforce can adapt to the new situation.

Embracing a new understanding of transparency

From forced leave and short-time work to redundancies, companies are currently discussing various measures to regain control of their financials as soon as possible. Many face a communication dilemma: on the one hand, they feel pressure from employees to provide transparent answers to the crisis. On the other, they are keen to avoid spreading panic. They believe that communicating too openly and in too much detail about all possible scenarios could unsettle many employees. If they communicate too little, the same happens.

In any case, employees will be questioning what the future holds. Many are probably already wondering whether to start their job search immediately. When in doubt, it is always better to communicate too much than too little. Companies need to understand that the digital information revolution has given younger generations in particular a new understanding of transparency, and that they expect this from their employers.

Leaders who reassure employees that things are not too bad, even though redundancy packages are being worked out in the background, are doing themselves no favors. Long-term trust of employees suffers – and with it, any efforts to increase productivity again as quickly as possible.

Communicating the big picture

When sharing bad news, it can be extremely difficult to get anything right at all. This makes it all the more important for leaders to communicate honestly and comprehensibly. They need to give employees an overview of the big picture. Nothing contributes more to a general sense of insecurity than salami tactics where the beginning and end are not apparent. An example of how not to do things would be to communicate redundancies in bits and pieces over a long period without explaining to employees exactly what the plan is and how they are (or are not) personally affected by it.
Covid-19 recession: How should companies be communicating consequences for employees?

Employees work best when they understand their employer’s strategy and purpose and have a clear idea of the role they can play in it. Over the coming weeks and months in particular, clear strategy communication will play a key role in freeing employees from their uncertainty as quickly as possible. This in turn contributes to a working environment in which productivity can once again thrive.
Covid-19 recession: How should companies be communicating consequences for employees?

Better a horrible end than endless horror

So when it comes to the question of how companies should be communicating the impact of Covid-19 for their employees, I would argue strongly in favor of clarity. Rapid information about the possible measures, set out with weighting, priorities and a time line should be complemented by fast, context-rich, forward-looking and transparent communication. Even if the news is bad, it is better to communicate a horrible end than endless horror. That way, people can look forward to a time when things move on again at some point.