It is important that an employer ensure that his or her employees are fully informed of company benefit programs and policies as well as other matters of general interest. For example, the company employee handbook could be supplemented by a regularly published (in print or electronically or both) company newsletter or other written forms of communication.

Not only would the newsletter serve to update the handbook, it could also provide information on a variety of subjects of interest to employees and promote a sense of community. Similarly, a company bulletin board could serve as a means of communication for employees and employers. Both a bulletin board and a newsletter have been found to be useful devices for preventing misinformation or rumors from developing into crises.

Personal contact with employees is still the most simple and effective means of improving employee relations. Meetings with employees, both formal and informal, should be held periodically to explain policies and to listen to employee concerns and suggestions. Such meetings will not only assure employees that the company cares, but also will afford management an opportunity to respond constructively to employee problems and sympathetically to employee needs.

Good communications can also translate to the bottom line. According to a 2007 study of over 6 million employees, conducted by the HR consulting firm Watson Wyatt, companies that made improvements to their internal communication programs over the last five years achieved a average 15.7% increase in market value.

How well does your company communicate with its employees? Periodically evaluating how you communicate with employees as well as all of your other stakeholders can be a beneficial exercise. Good communication is not only best practices, it’s good business.

Information courtesy of Labor and Employment Law Blog