Download - Australia’s Commsoscopy

COMMSOSCOPY 1

Australia’sCommsoscopyAre we doing enough? An exploratory examination into the effectiveness of communicating the employment ‘deal’ to Australians.

April 2011

2 COMMSOSCOPY WWW.IMPACT.COM.AU COMMSOSCOPY 3

About the surveyThis is Impact’s second study of the internal communication landscape in Australia. This probing research was carried out by Australian Research Unit and commissioned by Impact Employee Communications, an Ogilvy PR Worldwide Company.

The survey focused on senior leadership’s perceptions of internal communication, the Employee Value Proposition, and the social media and communication capabilities within Australian organisations. Phone interviews were conducted with 100 C-level executives – excluding those solely with HR and/or communications responsibility. It included executives from organisations with 100+ full time employees through to large organisations with 1000+ employees. 86% of companies interviewed were Australian-owned.

Impact thanks all those who participated in this study.

Contents

Under the microscope – Findings 4

Heart to heart: Is the EVP in ICU or recovery? – Executive summary 5

Open wide: This will make you better – Culture and values 7

We’re here to help: Taking the pain away – Communication support 8

On the improve: But help still needed – Communication skills 11

Prognosis positive: Getting better but not fully fit – A strategic approach 14

Going social: Some stay in the waiting room – Opportunities to explore 15

Conclusion 17

About Impact Employee Communications 18

References 19


Under the microscopeOur consultation exposed eight key insights.

In 2009 we investigated the business value of investing time and resources into communicating effectively to employees. From that research [The Inside Story: How Australian Organisations are Managing Employee Communication During the Downturn – July 2009] we concluded organisations were getting smarter at utilising internal communication to enable achievement of business goals. In essence, the foundations were in place.

Heart to heart: Executive summaryIs the EVP in ICU or recovery?

EVP: What is it?

This time we’ve taken our investigation further, to understand what is happening to the Employee Value Proposition (EVP) – how well it’s being communicated, how HR enables leaders to demonstrate it, what attributes attract employees to a company and what keeps them there.

Closely related to the concept of employer branding, EVP is used by HR & Talent Management to attract, engage and retain quality employees.

There has been much research into employee perspectives of the EVP. Our study complements the discussion by investigating the perceptions of the EVP amongst the leadership community within Australian organisations.

Employee Value Proposition

The attributes and benefits of an organisation that create the employment deal. The tangible and intangible things that link what you can expect and what’s expected of you as an employee.

The relationship is changing

A global trend in the last 18 months has focused on the relationship between employer and employee – what’s the employment deal, what can I expect as an employee and what’s important to the company? We are moving further away from economically rough times and the terrain has changed; both employees and employers are looking for different relationships, different ways of working and different results. The employment deal is changing so we question what this means for leaders, HR and communicators.

Watson Wyatt1 states, “Companies that are highly effective communicators have the courage to talk about what employees want to hear, and they redefine the employment deal”. Our research therefore looks at the relationship between the employer, the employee, HR support, leadership skills and communication. It gives insights into the things that Australian companies are doing to demonstrate THE DEAL. It identifies where the gaps are and opportunities for improvement.

We know that for different people and organisations, the EVP means different things and for many it’s not common language – only 35% of our survey respondents were familiar with the term. In this research we’ve identified a number of attributes and benefits that commonly determine an employee’s attraction and commitment to an organisation. Watson Wyatt summarise the EVP as, “including pay and benefit programs, professional development opportunities and work environment”.

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The employment ‘deal’ is being communicated but there are some big gaps in the way it is being done – the main attributes still need more continuous communication and reinforcement by leadership

Communicating business strategy and performance needs more attention

HR support for leaders to demonstrate and communicate the benefits of the organisation doesn’t yet go far enough. More support for communicating the ‘what’ and the ‘how’ is needed

Not enough is being done to upskill middle and front-line Managers in being effective communicators

Research suggests organisations using social media internally are perceived by employees as having more effective communication of their EVP than those that don’t

There is still some resistance to social media use externally by organisations

Organisations that use social media internally are backing their investment

Communication disciplines are becoming stronger but more needs to be done around aligning messages with vision, values and strategy


Trends

Our 2009 survey concluded that robust planning, process and leadership ownership of communication would be critical for employee engagement in the years ahead. Given the increasing importance of reminding employees what they’re getting back, we take a look at EVP through the eyes of leaders in Australia.

The 2009 survey showed communicating vision and direction was the number one priority for 2009 and 2010. Given this and changes in the working environment in the last few years, we could assume communicating strategy and business performance (which contribute to organisational stability) will have been a focus for businesses; yet table 1 below shows only 50% of leaders consider they are doing this well. This highlights the need to align and consistently communicate strategy, direction and performance more effectively.

Organisational reputation, training and development are recognised as the attributes organisations are demonstrating and communicating well. However,

incongruously they were ranked 7 and 8 out of 10 by leaders when the attributes are listed by importance (See table 2 on page 7). This raises questions for organisations – is effort going in to demonstrating and communicating those attributes that really differentiate? Or have the areas of importance shifted, thus indicating the need to alter the emphasis for communication and action?

Finally, whilst internal social media use is still growing in popularity in organisations, the research shows some differences in the way companies who use social media view themselves compared to others. They consider themselves more effective in communicating and demonstrating all the EVP attributes except organisational stability. We are beginning to see some differences in the cultures and communication approaches for those companies that embrace social media internally.

Overall the research results show there are some big gaps appearing. Demonstrating and communicating the employment deal is critical for businesses over the next few years and over 50% of those with responsibility for communicating it are admitting that it isn’t being done well.

Knowing this provides a useful guide to organisations to prioritise actions.

In support, the Executive Monitor2 report states “A company’s culture and reputation is important to 21% of executives, and ranked higher than personal benefits like bonuses, perks and salary.” It appears executives, like employees, also want to be associated with an organisation they can be proud of, rather than just focus on the rewards they individually receive from a company.

Watson Wyatt’s1 research shows only 58% of global businesses consider they effectively educate employees about organisational culture and values here in Australia. Demonstrating and communicating culture and values certainly seems to be an issue with 47% leaders considering that they do it well (see table 1 previous page). As it is perceived to be the most important attribute (see table 2), much more needs to be done to develop it, demonstrate it and communicate it.

Of the three most important attributes only organisational stability is considered one of the three top things that organisations do communicate and demonstrate well. This indicates a wide gap between the priority areas and how well they are being communicated and demonstrated.

Open wide:This will make you better.When asked which attributes and benefits were perceived to be most important to employees, there was a high level of consistency from the leaders in our survey: organisation culture and values, strength of leadership and organisational stability ranking the highest as the most important attributes.

“Culture eats strategy for breakfast”

Peter Drucker, popularised in 2006 by the Ford Motor Company.

table 1

table 2

WHAT IMPACT

SAYSWe see organisations grappling with ways to communicate their business strategy and some progress is certainly being made with this. Fewer organisations seem to have a planned approach for communicating the employment deal, yet there are some organisations taking a holistic approach to all aspects of the deal and creating the employment story to improve relations between the organisation and the employee. Doing this has a tangible impact on retention and engagement.


In general, leaders are positive about the support HR provides to management to demonstrate and communicate the organisations’ attributes and benefits. 78% consider support as being good overall for all levels of management. However it is notable that support concentrates more on executive than middle or front line managers/supervisors. Therefore we have an opportunity to improve support for managers to communicate aspects of the EVP so that it reaches all levels of the organisation.

Organisations that utilise social media to engage employees have a more positive response to the level of HR support provided: 83% of them feel that front line supervisors receive good or excellent levels of HR support.

We’re here to help:Taking the pain away.Less than 50% of leaders believe they’re communicating the main aspects of the employment deal well. Looking at this more closely highlights where support is being provided and some gaps that need filling.

Most organisations seem to use a range of HR tools to communicate the EVP. Comments from leaders indicate job adverts and induction are generally seen as important ways of getting across the employment deal. This focus on induction is relatively successful with 68% of leaders believing their organisation communicates EVP effectively to all new employees.

Yet it’s apparent many of the mechanisms for communicating the EVP focus on one-way communication channels i.e. – where the employee is being given information. There is little evidence to suggest leaders are being supported to demonstrate the various attributes and benefits or to talk about the EVP or reinforce through regular communication. Whilst manager communication toolkits are being used by 56% of organisations, only 2% view them as a valuable way that HR can support them to communicate the EVP.

Given we know effective communication is a conversation and dialogue driver, Australian organisations are definitely missing a trick.

Other areas where our respondents think HR can add value to senior leaders to get across the employment deal is to communicate the EVP more broadly using a range of tools, being involved in face-to-face meetings with employees and having clear and transparent policies and processes that relate to the EVP.

But what about after the honeymoon period?

Three in four organisations (77%) use an employee intranet site to communicate aspects of EVP. Most organisations use a mix of HR tools to communicate elements of the employment deal to their employees.

HR is definitely getting some of the fundamentals right in supporting leaders to demonstrate and communicate the employment deal. Much of the feedback refers to support provided to deliver specific aspects of the EVP e.g. communicating the essentials at induction or creating a story for job adverts. Having these foundations in place is valued by leaders. Yet they are also asking HR to provide more support so they can communicate and demonstrate the priority attributes and benefits of the organisation on an ongoing basis. This isn’t getting the attention it needs.

We are having to redefine what we mean by the Employee Value Proposition and how we communicate it. This means rethinking our leaders’ role in demonstrating and communicating it as well as defining how HR can best support it.

Angela Robertson: HR Director McCain Foods Australia and New Zealand

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table 3

• 80% believe the CEO/executive receive good or excellent levels of HR support

• 69% believe middle management receive good or excellent levels of HR support

• 68% believe front-line managers receive good or excellent levels of HR support

This highlights that almost a third of managers/leaders don’t believe they are receiving enough support to enable them to communicate effectively


WHAT IMPACT

SAYS

HR and internal communication teams need

to work together to create a strategy that shows all

employees what it means to be part of the organisation. Whilst

separate activities are an important part of communicating with employees at specific moments, a more strategic and joined-up approach needs to be taken to communicating the employment deal and supporting leaders and managers to demonstrate it.

Taking the premise that communicating the employment deal is increasingly relevant for organisational success, we have looked at the link between communication skill levels, HR support and how effectively the EVP is being communicated across the management levels in the organisation.

With less than 50% of the leaders thinking the different organisational attributes are communicated well, it indicates there are some big gaps – the question is where are the gaps and what can be done to close them?

The results from last year showed that CEO and executive teams tended to be better communicators than middle and front-line supervisors. This trend continues.

65% of respondents rated their CEO and executive team’s communication as good or excellent. This was broken down into three areas of strategy, benefits and values to compare across the leadership levels.

On the improve:But help still needed.Our 2009 research showed leadership communication skills development as the second highest priority for the year ahead. This year we’ve looked at what progress has been made, and how this impacts the connection of the EVP to employees.

Other findings• CEOs and executives are searching for more

targeted advice about specific things that need doing and want to use feedback more to steer their actions

• Middle managers are after training and support to be better communicators

• Front-line supervisors want training in various aspects of people management, toolkits and communication support

table 4


Table 4 (page 11) highlights the communication ability of leaders at each level is lowest when communicating organisation strategy. This shows a link to the 50% of respondents who think they communicate organisational stability well (see table 2 on page 7).

Further investigation puts the spotlight on non-multinational organisations where our research found only 21% rated their CEO and executive team’s communication as excellent. Also, organisations with over 1,000 employees are less likely than others to positively rate the communication of middle management and front-line supervisors as good or excellent when communicating the strategy or benefits.

In our 2009 survey, 67% of respondents agreed there was a renewed focus on the importance of communicating an organisation’s values. It would seem that leaders abilities to communicate these values is creating a gap between what organisations want to do and how well equipped they are to do it.

What is worrying about these results is the 20% plus gap in the perceived communication ability between CEO/ executives and front-line supervisors (table 4 on page 11) and the variety of indicators that show communication skills in organisations are falling short.

These results link to the support provided by HR to the different leadership levels; 62% believe enough resources are allocated to support CEO/ Exec communication skills whereas only 42% believe enough resources are allocated to training middle and front-line supervisors.

This means that almost 40% of senior managers and 60% of middle and front-line supervisors might not be supported in the way they would like to develop their communication skills. This provides a clear signal to HR to mark it as a top priority for 2011.

Towers Watson3 states that, “While it’s critical that the organisation focuses on building the right culture and programmes, it’s equally important not to underestimate the role of immediate managers in supporting engagement and wellbeing”. Managers need the skills to do this.

Given their critical role in engaging and retaining employees, more needs to be done to improve their communication skills.

Significantly, more organisations (59%) that use social media agree their organisations allocate enough resources to middle management and front-line supervisors and they consider their middle management communication performance as good or excellent.

This is an interesting finding as it might indicate the employees who use social media in their organisations may have more mature expectations of their managers’ communications, tending to seek answers first using the channels available to them. They refer to their managers later for clarification or further discussion.

Overall, the research indicates even though there is an improvement in the support provided, there is still a large gap between the level of support leaders are getting and the level needed to improve communication skills of managers.

Understanding what skills are needed is one step towards finding solutions to address the gap. Overall organisations were strongly aligned about the importance of different skills.

Our respondents consistently stated that all nine skills highlighted in the research are relevant and needed (see table 5 on page 12). For organisations with over 1,000 employees aligning messages with the organisation’s vision, values and beliefs is more important to them compared to smaller organisations. Yet our findings show these same organisations mark down their middle managers and front-line supervisors as communicators.

The European Communication Monitor 20104 predicts a 30% increase in the importance of personal communication coaching and communication skills training as a discipline for organisations over the next couple of years. Within Australia, the private sector consider coaching and mentoring skills to be more important than the public sector.

Our previous survey stated that over 90 percent of communicators support the best practice premise that communicating business direction is vital, that communicating vision and direction was their top priority and that this was critical to building long term employee commitment. This still holds true yet our leaders’ ability to communicate strategy is still poor. HR is being told by their leaders that they need support to improve skills so they engage employees and communicate the business strategy.

Compromising on safety communication skills for front-line managers is not an option. As the central point of contact for employees on projects, project managers and supervisors must be able to get across important safety messages. Investing a day to improve their skills is a no brainer when we consider the potential downside.

Robert Duvel: Manager Operational Services Construction Division Leighton Contractors Pty Limited

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WHAT IMPACT

SAYS

We observe resistance from organisations to introducing

communication skills for middle and front-line managers;

this is an unnecessary and damaging compromise. Given that equipping managers to communicate well is a recurring issue for organisations, and with managers being the linchpin for relationships and improving performance for employees, improving their communication skills should be a priority.

table 5


In 2009, we stated having robust communication planning processes would be critical. Positive steps are being taken by organisations to put plans in place with 59% of respondents having a plan for their business. This figure is higher at 79% for those using social media. Somewhat surprisingly, only 38% of organisations with 500-999 employees have a plan compared to 80% of organisations with 300-499 employees.

Another success factor organisations have been developing is the processes they use to communicate. 73% believe they have the right methods to communicate with employees in different locations and 66% have the right methods in place to communicate with non-office based staff.

Measurement is also being used, with 70% CEO/executives being formally measured on how well they communicate with employees. At the same time, 62% believe their organisation measures employee engagement. Matching this measurement to skills training and advice would address some of the skill gap as well as finding ways to engage employees through the EVP.

The perennial challenge!

55% of leaders consider lack of time as a barrier to communicating with employees. This is where planning, support and the right tools can help.

In our experience organisations are putting in place the foundations for communication to happen, they now need to develop and implement a strategic, holistic approach to communicating all aspects of the EVP.

This needs to look at requirements to attract, engage and retain employees while taking into account the different aspects of the employment deal at different stages of an employee’s involvement with the company.

Further thought and attention also needs to be given to the way the business strategy, vision and performance are communicated. One aspect of communicating the business strategy relates to the skills of leaders; it is seen as an essential skill and one that needs improving.

Prognosis positive:Getting better but not fully fit.Many of the attributes of the employment deal aren’t being communicated well and HR is being asked to provide more communication support, as well as skills training for leaders. Looking more closely at the effectiveness of employee communication, there is some good news.

WHAT IMPACT

SAYS

Organisations of all sizes are investing in employee

communication with much effort going into the

development of communication channels and processes. To really gain value from the investment of time and money, more focus now needs to be on the development of strategies for significant issues in the business. Without doubt more attention on the way the employment deal is communicated will elevate the value of employee communication.

Going Social:Some stay in the waiting room.Twitter, Facebook, Yammer, geo-location social networks like foursquare, blogs, podcasts and online communities are the norms for communication. Whilst there is much noise, hype and postulating about social media, our last survey showed there were a number of barriers preventing organisations transporting themselves quickly into the Web 2.0 world. These included limited access to technology for many employees, the fear of not being able to control the message, and internal technology platforms preventing the use of social networks.

Since then, the speed of take up for social media remains closer to that of a tortoise than a hare, with only 29% of organisations surveyed using social media as part of their employee communication.

There does, however, seem to have been some shift in thinking; interestingly the public sector is more likely to see social media as a worthwhile investment than the private sector (58% compared to 45%) and organisations with more than 300 employees see it as more worthwhile than those with 100-299 employees.

Barriers to using social media still exist with 46% believing it poses too many legal and other risks and 49% believing it is too difficult to measure the return on investment of using social media.

However previously foreseen barriers are changing. Losing control of the message was seen as an issue, whereas now 61% disagree that they will lose control of the message if they use social media.

Furthermore, 65% agree social media is a good tool for employee communication if the risks are managed. And the myth about social media and Generation Y is changing, with 68% disagreeing that social media is only appropriate for engaging Generation Y.

Interestingly, public sector leaders believe there is more value in using social media than their private sector counterparts, if the risks are managed – 75% versus 58%. They also see it as more worthwhile in investing in social media than private sector – 58% versus 45%. The private sector appears to have more resistance to social media: the barriers are leaders’ skills, risks, losing control of the message and it only being suitable for Generation Y.

table 6


We are also beginning to gather evidence from those organisations using social media about its benefits and uses; they are more positive about the benefits and less concerned about the risks. And of those already using social media, 90% believe it’s worth investing in.

Many organisations still seem to be sitting on the fence when it comes to social media, whereas those using it appear to be converts and see improvements in the way they engage employees, communicate with employees and are able to provide HR support.

The Watson Wyatt1 survey shows that 55% of Australia’s highly effective communicators have increased their use of social media for employees. This matches the responses we had from organisations using social media who considered their communication of the EVP to be more effective than those who don’t, and who viewed their leadership capability as communicators to be higher.

Social media is here to stay, but it still may take some time to convert a large number of organisations to see the value in investing in it. New McKinsey research5 indicates that a payday could be arriving for those companies that use collaborative web 2.0 technologies intensively, in that they gain greater market share and higher margins.

Lessons can be learnt from the early adopters on how social media can be used effectively to communicate business strategy and support the employment deal.

WHAT IMPACT

SAYS

We think organisations should consider the need

for social media based on what they want their

employee communication to achieve and how best to deliver it. There is no universal answer, and different elements of social media should be considered as part of your communication strategies – for instance introducing a Facebook group to receive feedback on an issue may be your first step.

• Only 14% of those who use it agree that social media poses too many legal issues and risks. This compares to 59% who don’t use it.

• Only 14% of those who use it agree organisations lose control of their messages when they use social media. This compares to 30% which don’t use it.

ConclusionLooking at the way the employment deal is demonstrated, communicated and used in organisations brings to our attention a range of issues organisations are currently facing.

Having an EVP that is clear, known and used to differentiate is one of the main ways that employees are attracted, engaged and retained by organisations. Therefore putting the organisations energy into those elements that build a strong EVP that is known and enjoyed by employees provides market advantage.

What we are seeing is HR supporting leaders in a variety of ways to communicate the employment deal. At certain points this support is proving useful, particularly to attract employees and induct them in to the organisation. Beyond this HR support seems to fall short of the levels needed.

The biggest opportunity is in the development of communication skills for leaders and managers and focusing communication efforts on those aspects of the EVP and the business strategy that engage employees and improve business performance. Consideration should also be given to some of the advantages social media users are demonstrating in the way they are communicating the employment deal. Ignoring this gap between what is needed to demonstrate and communicate the employee value proposition and what is currently happening will lead to further break points in the connection between employer and employee.

V PAENU R E M P L

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N D R E P U T A

T I O N W I T H

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One of the things you find in companies is that once a culture is formed it takes nuclear weaponry to change it... which is one of the primary reasons many organisations have turned from the short term engagement focus of internal branding initiatives to more long term focus of employer brand management.

Jeff Bezos: Founder Amazon6

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Social media is being used by thousands of organisations as a way to not only engage and connect with employees, but to tap into knowledge, uncover talents, identify ambassadors, build solidarity and bring cultural values to life.

Brian Giesen: Regional Director Ogilvy 360° Digital Influence

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References

UNDERSTANDING THE PERCEPTION, BEHAVIOUR & INTENTION OF EXECUTIVES IN AUSTRALIA

1. Watson Wyatt Capitalizing on Effective Communication – 2009/ 2010 Communication ROI Study Report

2. Executive Monitor 2010 – Understanding the perception and intention of executives in Australia

3. Towers Watson Perspective Jan 2010 – Employee Wellbeing: Taking engagement and performance to the next level

4. European Communication Monitor 2010 – Status quo and challenges for Public relations in Europe

5. McKinsey Quarterly Dec 2010, The rise of the networked enterprise: Web 2.0 finds its payday

6. (Mosely, RC 2007) ‘Customer experience, organisational culture and the employer brand’ Journal of Brand Management, Vol 15, October pp 123-124

About Impact Employee CommunicationsNow in our sixteenth year, Impact Employee Communications is Australia and Asia Pacific’s leading employee communication consultancy—the most awarded, the most specialised, and, with over 600 client results under our belt, the most experienced.

We offer end-to-end communication solutions to business challenges for some of Australia and Asia Pacific’s largest organisations. This ranges from strategic communication planning and leadership engagement, to the creative and logistical delivery of tactics to a range of audiences.

Whether it’s major change, such as restructuring, downsizing or an IT overhaul, specific business critical initiatives such as energy saving, trade union negotiation or safety, or HR specific initiatives such as EVP development, career pathway engagement or reward and recognition programs, Impact has been, and continues to be a first choice for Australian private and public sector organisations facing some of their toughest people challenges.

In addition to offering core strategic employee communication counsel, Impact also has five specialist practice areas reflecting the big ticket issues of today.

Specialist areas:• Change Management Communication • Leadership, CEO and Vision & Values Communication • HR People & Culture Communication • Industrial Relations and Safety Communication • Sustainability and CSR Programs (OgilvyEarth)

These areas are supported further by our specialist service offering – internal communications research capability, coaching, training, social media, creative studio and employee events.

What makes us different?Put simply, Impact’s focus is narrow, but its experience is deep and specialised, and to complete the picture, is a values-driven business. Its team includes former heads of communication for major blue-chips and other communication, change and engagement specialists.

Our collaborative approach is key to our success. Always ensuring true ownership of employee communication from leadership teams is what makes our work impactful, driving business results.

Contact:Tam Sandeman Impact Employee Communications Level 2, 72 Christie Street St Leonards NSW 2065 Australia T +61 (0)2 8281 3222 impact.com.au

Impact Employee CommunicationsLevel 2, 72 Christie StreetSt Leonards NSW 2065AustraliaT: (61 2 ) 8281 3222

impact.com.au