A Towers Perrin report entitled Is It Time to Take the SPIN Out of Employee Communication? (pdf) reveals that in a survey of 1,000 working Americans, only 51 percent believe that their company generally tells the truth in its communications to employees, and one in five employees believes that their employer generally does not tell the truth.
Among the other survey findings:

• Company communications about the business are viewed as credible by less than half of employees and appear dishonest to roughly a quarter of the workforce.
• Senior leadership is viewed as less credible than front-line managers and supervisors.
• Employees generally believe their companies are more honest with shareholders and customers than they are with employees.
• Longer-service and older employees tend to be more skeptical about company communications than newer recruits.
• 55% of those surveyed believe their company tries too hard to put a positive spin on issues in its communication with employees.

The Towers Perrin study notes that this break in trust follows both a recessionary period and a relatively recent spate of corporate scandals. We think that the survey also reflects an ongoing attenuation of the good faith between employers and employers that characterizes an increasingly transient work force. Layoffs, outsourcing, and benefit cuts all take their toll, and perhaps the more so if communication about these events is viewed as inauthentic.
The survey authors make the point that credibility is essential for work force retention; we would state that maintaining the credibility of management and your corporate communications programs should be part of your overall risk management program. Employers who are perceived as dishonest will not command loyalty. It can be all too easy for employees to justify dishonesty or entitlement in response to perceived deceit on the part of the employer, perhaps by taking a few extra sick days, or magnifying a slight back ache into a full blown disability claim.
We are always surprised by how many employers are reluctant to provide basic communication about workers compensation to their employees — almost as though by mentioning the very words, claims will follow. Yet we believe that the advantages of open, honest, and proactive communications far outweigh any potential disadvantages. Far better for an employer to explain the rights, benefits, and protections afforded by workers compensation before an injury occurs than to leave it to a neighbor, relative, or attorney to provide potentially inaccurate or biased information after an injury has occurred. We would encourage employers to discuss the rights and responsibilities of all parties in advance – to thoroughly explain what workers compensation is and how it works, coupled with a message about the organization’s commitment to maintaining a safe working environment and expectations for working safely and adhering to safety policies.
The Towers Perrin survey offers some good suggestions for improving communications. These include:

• Recognize that communication must start at the top.
• Understand your audience – use surveys and other feedback mechanisms to ensure that you understand your audience.
• Audit your communication channels and match the message to the channel
• Train leaders and managers in how to communicate effectively.
• Tell the whole story – provide not just the facts but the context and the business rationale.
• Ensure a two-way dialogue.