The jitters continue on Wall Street and there’s a growing consensus that the nation’s economy is headed for a recession if it’s not already there. Companies not directly affected by the financial meltdown are beginning to feel its impact, which means the reverberations will soon hit the average worker.

A few weeks ago in this column I urged business leaders to communicate openly and frequently with employees, customers and business partners about the financial crisis. Fear usually leads to silence, but that’s not what these times call for.

Employees are arguably the most important target of communication in a crisis. They are a company’s frontline in whatever battles it faces. Besides shareholders in publicly traded companies, employees have the greatest stake in the game. They can be your company’s greatest advocates -- or toughest critics. They also are the faces your customers see first.

So what kinds of employee communications should be taking place right now? Here are some ideas:

• Explain the direct impact of the financial crisis on your company, if there is one. If your company is not directly affected, talk about how events on Wall Street trickle down to your company.
• Communicate how the financial crisis affects your employees’ 401(k)s and pension funds. Often, the companies that manage these funds communicate directly with your employees, but find out if this is the case and fill in any gaps.
• Talk about how your industry expects to weather the current economic storm. Is it resilient in this type of economic downturn? Why or why not?
• Explain any cost-cutting measures your company is considering in light of a probable recession. Even if you anticipate bad news such as layoffs and budget cuts, the long-term damage to employee morale will be less if you explain the reasons behind such actions.
• Reiterate important concepts such as your company’s mission, goals and values. The true character of an organization and its leaders reveals itself during times of crisis. Remind people of the fundamentals that guide your company through good times and bad.
• Make sure you keep company leaders at every level of the organization informed and involved. The most critical relationship is that between employee and direct supervisor. One of the most common complaints I hear from front-line supervisors and middle managers is that they are ill-equipped to deal with employees’ questions and concerns during difficult times. Strengthen that critical link by providing information and resources.
• Communicate frequently. Look for opportunities to hold face-to-face forums, use technology to engage in dialogue with employees and to solicit their questions and feedback, and distribute printed materials to explain complex issues.

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.