Plan sponsors have had to make some tough decisions about their pension and benefit plans in recent years. As a result, many of them have invested considerable time and effort figuring out how best to communicate bad news to members. But they haven’t always given the same consideration to communicating good news—and missed a valuable opportunity.
You’re probably thinking how you can go wrong communicating good news. But the reality is not everyone interprets information the same way. What might seem like positive news to you may not be received as positive by others. How we interpret information is shaped by our relationship with the person delivering it, the context in which it is given, and how it affects us personally.
With that in mind, here are four pitfalls that can sabotage the delivery of good news:
Pitfall 1: Taking employee attitudes for granted. After years of job security fears, salary freezes and benefit cuts—not to mention increased job performance expectations—many employees have developed a heightened degree of cynicism toward the organization they work for. Depending on how heavily you’ve borrowed on your employees’ good will, your credibility may have suffered more than you realize—and you may be facing a serious trust deficit. Even a positive message can be misinterpreted and twisted into a negative by disillusioned employees suspicious of leadership motives.
Pitfall 2: Forgetting that employees take their cues from their leaders. Unless your leadership is a wholehearted and visible proponent of your good news, it will fall flat—or worse. The slightest whiff that you’re throwing employees a bone will undermine your efforts, especially if you’re starting from a trust deficit. That said, handled well, good news can provide the ideal opportunity to (re)introduce your organization’s leaders and begin (re)building relationships with employees.
Pitfall 3: Not listening to your employees. Great employers find ways to check in with their employees, to find out how they’re doing. By engaging your employees through formal mechanisms (such as surveys and focus groups) and keeping informal lines of communication open, you’ll keep a firm grip on employee attitudes. Not only will you be better equipped to nip negative trends in the bud, you’ll also gain an understanding of employee wants and needs. Announcing that you’re adding new coverage isn’t going to gain you much traction if it’s coverage employees don’t care about.
Pitfall 4: Failing to put your good news in context. Anyone involved in overseeing an employer-sponsored pension or benefit plan in recent years has learned to temper their expectations when it comes to plan performance and costs. So, while you might see a 2% increase in employee-paid premiums as a win (given that your competitors are seeing increases of 5% to 10%), employees aren’t likely to see it in the same light. You need to put the news in context each and every time. The more your employees know, the less likely your news will be misinterpreted or mistaken as spin.
Companies that receive the highest marks for engagement and corporate culture aren’t necessarily those with the highest salaries or the best benefits. In most cases, what these organizations have in common is a strong relationship between the employees and leaders. By positioning leaders as sympathetic and trustworthy, and striving to understand the fears and needs of employees, these organizations are able to share information in a way that connects with their workforce—in both good and bad times.