Chapter 7 Internal Communications

WAR FOR TALENT

Recruiting – Start Early, Build a Reputation

Google: Fortune Best Company to Work For 2012

Defining Internal Communication Internal communication is “the planned use of communicaton actions to systematically influence the knowledge, attitudes and behaviours of current employees” (Stauss and Hoffmann, 2000). Bowen (2006) defines internal relations is “building and maintaining relationships with all the publics inside an organisation” from lower supporting staff to top management personnel.

Defining Internal Communication 2/2 Van Riel and Fombrun (2007) argued that an excellent organization puts emphasis on communicating with five key stakeholders such as employees, customers, investors, government, and the public. An internal stakeholder – an employee – is a key organisational asset. Although some organisations have put internal communication under the responsibility of the Human Resource Department, it is argued that internal communication must report to the Corporate Communication Department to build an effective communication system.

Importance of Internal Communication According to Argenti (2007: 138), “in the post- Enron era, many empoyees are functioning with a greater degree of cynicism or distrust of corporations and their senior managements”. They are concerned about “how senior management is communicating with them, what is being communicated, and whether or not the feel engaged in and aligned with the company direction” (Argenti, 2007)

Changing environment Today’s employee Today’s workplace well educated Higher expectation Want to understand more Outsource Today’s workplace Tighter staffing Longer hours Greater workloads performance

Changing Environment (cont) Business Complex Highly competitive Employee participation – inform, engage

The Trends in an External Macro-Environment Influence Internal Communication Figure 6.0: The PEST Analysis (political, economic, social and technological): Building Strategic Internal Communication

External Macro-Environment 2/3 Political Trends in the political environment relate to new legislation, government policy, national and international politics (Tench and Yeomans, 2006) Economic Trends in the economic environment are often associated with the laws of supply and demand (Tench and Yeomans, 2006)

External Macro-Environment 3/3 Social Trends in the social and cultural environment should be taken into account as changes will affect the future market that emerges and the ‘kind’ of generation particularly relating to demographic structure of the society. Technological Trends in the technological environment relate to the changing information communication technologies affect the nature of work and the nature of jobs (Tench and Yeomans, 2006)

Organizing the internal effort Communication audit Goals – important assets Where report?

Implementing an effective internal communications program Communicate up and down Make time for face-to-face meetings Communicate online Create employee-oriented publications Communicate visually Focus on internal branding Consider grapevine

How to Succeed with Employees Create an atmosphere of respect. Treat employees as insiders. Build-up corporate loyalty: “Ambassadors of Commitment.” Capture more discretionary time. Increase two-way communications. Invest in decent publications. Listen to and use the grapevine.

Employees Relations: Measuring Internal Communication Today’s corporations try to attract best and talented professionals and retain current skilled workers. Recently, a number of Malaysian business leaders agree that managing talent is vital for their corporations. Employees relations is about how senior managers communicate coherent messages pertaining to organizational policies with their skilled staff using appropriate communication channels such as emails, telephones, and video conferences and so forth.

Employees Relations: Measuring Internal Communication 2/2 According to Krone et al, 2001 in Van Riel & Fombrun, 2007: 188), employees relations consists of four roles: Efficiency Internal communication is used primarily to disseminate information about corporate activities. Shared meaning Internal communication is used to build shared understanding among employees about corporate goals. Connectivity Internal communication is used mainly to clarify the connectedness of the company’s people and activities. Satisfaction Internal communication is used to improve job satisfaction throughout the company.

Effective Internal Communication Programs Flow of Communication Downward communication – [management to employees] Upward communication – [employees – management] Horizontal communication – [employees – employees] Relationship Management Bulletin and Publication Internal Branding Program

Selecting externally – engaging internally Build the Employer Branding strategy Be out there (academia, conferences, forums, professional clubs, corporate events) Engage the business – they know their market Job enrichment: meaningful and exciting jobs Balanced remuneration / performance linked Talent programs Career Development to complement performance review

Conclusion This chapter covers a clear understanding about strategic internal communication as a management function that requires substantial attention from top management. However, in a multicultural country, internal communication relies on face to face interaction between managers and subordinates. The aura of leadership and communication are key integral parts of effective strategic internal communication. There is a dire need for internal communication or employee communication to move beyond communicating with employees, instead the role must be inspiring employees for building organisational excellence.

The wicked leader is he who people despise. The good leader is he who the people revere. The great leader is he who the people say, “We did it ourselves.” -Lao Tsu