From the Desk of the CFO
The first in a multi-part series on the financial impact of Employee Communications.
As the Chief Financial Officer of XL Communications, my primary focus is financial. But, I'm not just a numbers person. I recognize that numbers don't change people, people change the numbers. I strongly believe that effective employee communications can have a significant impact on how people perform, and can ultimately help organizations succeed.
In fact, statistics show that organizations that manage change and communicate effectively financially outperform their competitors by 30%!
And yet, one of the primary reasons we hear that organizations don't focus on employee communications is lack of budget. In other words, organizations are not willing to make a relatively small investment to dramatically increase their bottom line.
As a CFO, that concerns me. And, that's the reason I've decided to step out of character and write this series of newsletters. From the Desk of the CFO will examine Employee Communications from our shared objective of organizational SUCCESS.
Enhancing communications may seem overwhelming, onerous and costly. With some guidance, it doesn't have to be. There's a lot to be gained -- for you and the organization.
Don't know where or how to begin? The following information can help you get started.
Getting Support and Money
No doubt, you are already spending money on employee communications. But are you getting the results you want? Do you have goals against which you can measure the success of your current communication efforts?
To get support from senior leadership, identify how an investment in communications will help deliver on important company objectives. Establish three or four attainable, measurable goals. Look at where the organization is now versus where you want to be.
Start with those areas that are of greatest concern. They vary from company to company, but might include areas, such as:
Improved Healthcare Claims Experience
Greater Participation in Wellness Initiatives
Higher Participation and Savings Rates in 401(k) Plans
Having identified your goals, consider the ripple effect – what impact will attaining those goals have on you, your department, the organization?
For example, if your goal is:
• Improving employee turnover by a given percentage
o How much time andmoney will you save in searching for, interviewing, onboarding and training new employees?
o How will employee productivity be affected and what is the financial impact?
o Will it improve customer satisfaction and how will that impact your ability to improve sales?
o What is the effect on the employer brand (how prospective employees view your organization)?
As we’ve seen with the airlines recently, social media can have a powerful and far reaching impact on how your company is perceived and on stock values.
You might try using a Communications Scorecard, similar to the one below.
Sample Communications Scorecard
|10% reduction in turnover
|30% Increase in Engagement
|Engagement Survey Town Hall Survey
|Impact on Behavior
|50% Increase in customer satisfaction
|Customer Survey Metrics
|3% increase in sales
|Sales Report Metrics
Did not meet required outcome
Marginally met required outcome
Met required outcome
Exceeded required outcome
Far exceeded required outcome