Company Leaders Not Communicating With Employees On Financial Crisis, According To New National Research From Weber Shandwick

Monday, October 13, 2008 NEW YORK – October 13, 2008 - Working Americans are not hearing from senior leaders in their companies about the implications of the global financial crisis, according to new research released today by global public relations firm Weber Shandwick.

The survey of 514 employed Americans shows that 70% expect the current economic and financial problems in the U.S. will have a negative impact on the company they work for over the course of the next year. Of those, 26% believe their company will have to lay off employees and 62% said their company would have trouble meeting its goals.

The research highlights a clear deficit in the workplace between employee appetite for more communication on the impact of the economic crisis and the levels at which company leadership is providing information. The research shows that 71% of people felt that their company's leadership should be communicating more about current economic problems, and 54% have not heard from company leaders at all on the impact of the financial crisis on their company. By comparison, 74% said that they had heard colleagues and co-workers talking about the issue.

Of those who had discussed the financial crisis at work, 86% say that senior executives or management were seen as “believable” and “trustworthy” sources on the topic.

"At a time when working Americans are concerned about their personal finances, their jobs and the overall economy, employees are looking for credible, candid information, and right now too few business leaders are filling the information void that exists,” said Harris Diamond, CEO of Weber Shandwick. “Employers have a great opportunity to communicate with their workforce about the impact of the economic situation on their companies as well as on 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," added Diamond.

"In an age of greater transparency where employees play a vitally important role in shaping a company's reputation both in good times and in bad, their views have an impact that goes far beyond the office or shop floor," said Micho Spring, chairperson of Weber Shandwick’s U.S. corporate practice. "Many companies have highlighted the need to invest in employee communications, and the questions raised by the financial crisis confirm how now, more than ever, employees need to be equipped with information from senior voices in their companies."

Survey Methodology
The national representative survey of adults, ages 18 and older, was commissioned by Weber Shandwick and conducted by KRC Research, between October 3rd and October 6th. The margin of error for the overall sample (n=1006) is +/- 3.1 percentage points at the 95% confidence level. The margin of error for the employed sample (n=514) is +/- 4.4 percentage points at the 95% confidence level.

About Weber Shandwick
Weber Shandwick is a leading global public relations agency with offices in 81 countries around the world. The firm’s success is built on its deep commitment to client service, our people, creativity, collaboration and harnessing the power of Advocates - engaging stakeholders in new and creative ways to build brands and reputation. Weber Shandwick provides strategy and execution across practices such as consumer marketing, healthcare, technology, public affairs, financial services, corporate and crisis management. Its specialized services include digital/social media, advocacy advertising, market research, and corporate responsibility. In 2010, Weber Shandwick was named Global Agency of the Year by The Holmes Report for the second year in a row; an ‘Agency of the Decade’ by Advertising Age, Large PR Agency of the Year by Bulldog Reporter, a Digital Firm of the Year by PR News, and Top Corporate Responsibility Advisory Firm by CR Magazine. The firm has also won numerous ‘best place to work’ awards around the world. Weber Shandwick is part of the Interpublic Group (NYSE: IPG). For more information, visit http://www.webershandwick.com.