Dear CEOs,

We all get it. You’re in the driver’s seat right now.

We’re fully aware of the economic reports and projections: The job market is less than optimal and we’re in a hiring recession.

Because of this, you may hypothesize that employees want to keep their jobs more than ever. Is that altering the way you communicate with them?

What I’m seeing:

If your staff is job hugging, it should be easy to get them to work harder for you, right? So, what messages are some CEOs sending to their workforce?

  • ROI: Insufficient results have consequences, including mass job cuts.
  • Hustle Culture: “Can’t rest” and cautioning against “laziness.”
  • AI: And the dreaded, “AI can do your job.”

Why it’s a mistake:

Set aside the cyclical nature of the economy and the job market (I’m no economist after all). Instead, think about sustainable performance and hidden risk.

According to a study from the Institute for Corporate Productivity, employees at high-performing organizations (measured by profitability, market share, and customer satisfaction) were 11 times more likely to report that their senior leaders and managers trusted them to do their jobs.

Conversely, remember the Boeing 737 MAX debacle? Workers were being pushed to the brink with production targets and profits prioritized over all safety concerns. They’re still in business, but their reputation may never recover. Don’t be Boeing.

From purely a communications standpoint, your employees are an essential audience. Why?

  • They are your primary brand advocates. Like it or not, they will use social media to tout a company or to slam it for perceived mistreatment (which could create massive costs and problems for your recruitment teams down the road).  They are also on the frontline with another top audience – your customers. If they exude positive energy and motivation, they will likely improve customer service, satisfaction and sales.
  • There is a direct correlation between employee engagement and financial performance. You think threats are a motivator? Think again. According to Gallup, highly engaged teams drive an average of 23% higher profit, while disengagement can cost the U.S. billions annually.
  • They’re who you’ve got. Your staff might not be perfect, but you can’t run your business without them. I’m not suggesting you tolerate poor performance, but you’ve presumably hired managers who can address that individually with employees who are struggling.

How you should be communicating:

I do more external than internal communications consulting, but many of the same rules apply. It starts with good working relationships built on two-way dialogue.

  • Explain the situation and be specific. Don’t sugarcoat mixed news, but do explain your expectations, rationale, how employees contribute meaningfully to company goals, and the resources they will have. If it’s going to be tough, tell them.
  • Share regular updates and accept feedback. Keeping employees in the loop with pertinent information fosters loyalty and performance. Solicit feedback in live Q&As and through social media vehicles, and make sure you respond.
  • Celebrate the wins. Don’t just call out the failures. Share and celebrate the successes and learn from them.

In summary, CEOs, remember: your people are your company’s key to performance. Don’t threaten or berate–cultivate.

You may be in the driver’s seat today. As we’ve seen again and again, that will change.

Watch what you say and how you say it, and succeed.

Originally published on LinkedIn