Business leaders are staying mum at a time when employees need to hear from them most about the impact of the financial crisis on their companies, according to a recent survey.

The survey conducted in the first week of October by the global public-relations firm Weber Shandwick found that 71 percent of respondents felt their company’s leaders should be communicating more about the economic problems. More than half have not heard anything at all on the subject from company leaders. The rumor mill, however, is alive and well, with 74 percent saying they had heard from co-workers about the issue.

If you are a business leader, would you prefer that your employees get their information from you or from their colleagues? Who knows more about how your company plans to weather the storm?

In times of crisis, many business leaders are reluctant to say anything to employees. Sometimes fear is the driving factor -- fear of not knowing what to say, of saying the wrong things, or simply fear of facing employees’ tough questions and heartfelt concerns.

Here’s what those fearful business leaders need to do:

• Step up to the challenge. This is a time for real leadership, not for retreating into your executive suite. The Weber Shandwick survey found that among employees who had heard from their business leaders on the financial crisis, 86 percent said their senior management was “believable” and “trustworthy.” Leadership during a crisis is an excellent time for building employees’ trust in senior management.
• Say something. Employees do not expect you to have all the answers to all their questions. The act of communicating whatever you do know is what’s really important. “I don’t know” is an acceptable answer to employees’ questions, as long as it is the truth.
• Commit to communication. Even if you don’t have much to say, remain committed to the communication process. Even President Bush, when he had nothing much new to say, made daily appearances in the Rose Garden in the early days of the Wall Street crisis. It was important for people to see him and to know the issue was on his agenda.
• Focus on the long term. Keeping the lines of communication open in the midst of a crisis is an investment in your long-term trust account with employees. “By stepping up and communicating more with their employees, company leaders will enhance their company’s standing, consolidate their position of trust in challenging times and head off any inaccurate rumors or fears that are all too common in fast-moving crises such as these,” says Harris Diamond, CEO of Weber Shandwick. Think past the crisis: what do you want employees to remember about your leadership during this time?

After this battle is over, the landscape will unfortunately be littered with the remains of companies that shut down all communication with the people on the front lines. The companies whose leaders engaged employees will live to fight another day.

Robert J. Holland owns Holland Communication Solutions LLC in Mechanicsville. He works with Fortune 500 companies and small businesses to help them develop communication programs that support business goals. He is also available to speak to business groups about workplace communication. You can reach him at robert@hollandcomm.com, at www.hollandcomm.com, or by calling (804) 368-0312.