bad news is better than no news

With the UK economy now in a sharp downturn, gloomy forecasts predicting a slow recovery and dire warnings that 2009 will see a steep rise in the jobless totals, a large part of the UK’s workforce is living with heightened fears over job security.

While no one relishes the prospect of giving bad news, the clear message from a leading academic is that it’s much better to inform your staff about the harsh reality of potential job losses than leave them in the dark.

Dr Stuart Whitaker, senior lecturer in occupational health at the University of Cumbria, says that job insecurity may have a more damaging effect on people’s health and wellbeing than being made redundant or being sacked. Dr Whitaker explains: “Employees who are afraid of losing their jobs enter a damaging ‘anticipatory’ phase where they are aware their position is under threat, but have no further knowledge. During this phase, people may experience low-level anxiety, disturbed sleep and changes in behaviour, such as increased drinking and smoking. The employing organisation may also feel the impact in terms of worsening industrial relations, employee disengagement and reduced motivation to attend work and do well.”

Surprisingly, Dr Whitaker reports that once employees are made redundant or sacked they begin to deal with the consequences, rather than worrying about them, which is less damaging on their health than the uncertainty of anticipating major change. “That being the case,” he says, “employers have an important role to play in helping to avoid the most damaging effects of job insecurity. If the ‘anticipatory’ phase is allowed to continue for long periods, more serious signs and symptoms such as raised blood pressure, an increased risk of coronary heart disease, mental health problems and even increased rates of cancer have been associated with job insecurity.

“It may sound obvious,” he concludes, “but the key to reducing the potential health risks is honesty. People find it difficult to deal with the unknown and in health terms it’s fair to say that bad news is better than no news.”

communicating in the recession Businesses should redouble their efforts on internal communication during uncertain economic times rather than putting it on the back-burner. That’s the advice from the British Association of Communicators in Business (CiB), which has unveiled seven simple steps to help internal communicators cope during the current difficult economic climate. ■ Explain the direct impact of the current economic situation on the industry in general and your organisation in particular, and the types of action you will need to take to weather the storm. ■ If redundancies, restructuring or budgetary cuts are likely, it is better to tell staff as soon as possible, along with the reasons and the time-scales for decision-making, rather than delaying announcements. ■ Remember the importance of supervisors and line managers in delivering important information and receiving feedback. Data suggests that employees have greater trust for their immediate line manager than those higher up the organisation. ■ During uncertain times, staff need more information. If there are long silences, they will come to their own conclusions, so ensure there are frequent opportunities to communicate with staff and receive feedback. ■ Leaders need to be highly visible and credible. ■ If inaccurate information is being spread either internally or externally, move quickly to correct misconceptions. ■ Co-ordinate internal and external communications. Employees should always be the first to hear the organisation’s news.