new frontiers in employee communications, edelman 2006

8/15/2019 New Frontiers in Employee Communications, Edelman 2006

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New Frontiers in

Employee Communications2006

Third annual examination of internal communications channels

By Edelman Change and Employee Engagement in partnership with PeopleMetrics



New Frontiers in Employee Communications

ABOUT EDELMAN CHANGE AND EMPLOYEE ENGAGEMENT

Edelman Change and Employee Engagement is the organizational communications consulting

practice of Edelman. The mission of Edelman Change and Employee Engagement is to advise

and support organizations on strengthening their ability to implement corporate strategy and

initiatives. We help organizations establish stronger management and employee relationships

that condition organizational behavior to build brands, improve performance and achievebusiness goals.

We deliver value by providing clarity and setting expectations between organizations and their

constituents. This, in turn, positively conditions attitude and behavior that promotes

constituent satisfaction – a key driver for business success. In sum, we aim to provide better

business results for our clients – results defined against business objectives.

Our approach takes a holistic view of employee engagement and communications. We believe

that alignment and consistency across the entire employee experience is critical in achieving

behavior change. Depending on client needs, our programs may focus on one or more of the

six areas that drive employee engagement:

• Communication and information flow

• Leadership

• Involvement and opportunity

• Recognition

• Compensation and benefits

• Work environment

ABOUT PEOPLEMETRICS

PeopleMetrics is a leading U.S.-based research and consulting firm that helps companies

understand and manage their two most important assets – employees and customers. We

provide dozens of Fortune 1000 companies with Employee Engagement, Customer

Engagement, and Strategic Market Research services.

In particular, PeopleMetrics is a thought-leader in helping companies engage their employees

and customers. Our tested people engagement model includes both functional and emotional

components, while our benchmark databases provide robust competitive norms in a variety of

industries. In addition, PeopleMetrics has extensive experience linking employee and

customer engagement to business outcomes and profitability.



3New Frontiers in Employee Communications

Table of Contents

INTRODUCTION 4

EXECUTIVE SUMMARY 5

AWARENESS OF NEW MEDIA TECHNOLOGIES

• AWARENESS DOES NOT EQUAL USAGE 8

USE OF EMPLOYEE COMUNICATIONS CHANNELS 9

• SHARING WITH A CLICK OF A MOUSE 9

• CORPORATE BLOGS 11

• PODCAST USE 11

• WIKI USE 11

• MAXIMIZING THE INTRANET 12

• FAVORING THE FIREWALL 13

A BANNER YEAR FOR CEO BLOGGERS

EFFECTIVENESS OF COMMUNICATIONS CHANNELS 15

• PRINT VERSUS ELECTRONIC 16

• NEW MEDIA EFFECTIVENESS 17

• DIFFERENT CHANNELS FOR DIFFERENT GOALS 17

FACING THE REALI TIES OF MODERN COMMUNICATIONS 22

• TRACKING EMPLOYEE BLOGGING 22

• OBSTACLES TO ONLINE TOOLS – DEBUNKING THE MYTHS 23

• CREATING A CULTURE OF COMMUNICATION 25

ACCESS TO ELECTRONIC COMMUNICATIONS

• RECOGNIZING THE DIGITAL DIVIDE 27

• ACCOMMODATING THE 24-HOUR WORK CYCLE 27

WHAT THIS MEANS FOR YOUR ORGANIZATION 29

METHODOLOGY 30

VALIDITY 30

ENDNOTES 31

CONTACTS 32




INTRODUCTION

Two years ago we began examining the use and effectiveness of the various communications

channels organizations used to communicate with employees. Our goal was to provide a

benchmark for organizations to evaluate the tools they have implemented and identify best

practices in the industry. The study also aimed to explore the adoption of emerging new media

technologies inside of organizations and investigate the potential these tools hold for corporatecommunicators.

A lot has changed since we published the first “New Frontiers in Employee Communications”

study in 2004:

• The number of blogs globally has doubled more than three times, growing from roughly 6

million to more than 57 million.1

• The number of podcasts hosted on the Internet has surpassed the number of radio stations

worldwide.2

• Wikipedia, a public Internet-based encyclopedia launched in 2001 that allows users to

create and edit content, moved from million entries in 05 languages to more than 5 million

articles in 250 languages today. The English version alone has more than 1.4 million entries,

more than 10 times that of the Encyclopedia Britannica. 3

The use of new media continues to expand at an exponential rate among the public, but the

potential these mediums hold for organizations remains unclear. Are organizations adopting

new media technologies? If so, for what purpose? Are these new channels an effective way to

communicate to employees? And if they are, are they superior to more traditional methods?

The data above on adoption of new media only tells part of the story. We recognize that

corporate communicators are in search of answers to more meaningful questions as well:

Does this represent a paradigm shift in communications, or are these tools simply for the

tech-savvy? Will these new channels facilitate a more open exchange of ideas, or invite

abuse? What forms of communication will the next generation of workers expect?

This report not only investigates how organizations are currently using new media technologies,

but also points to implications for the future of employee communications and what corporate

communicators need to consider to effectively reach and influence workers. Our examination

of employee communications at industry-leading organizations reveals three things:

• Despite increased awareness of new media technologies, companies are hesitant to adopt

them for internal communications.

• Organizations should consider a mix of channels depending on their communications goals.

• Communicators misunderstand the obstacles to implementation of new media technologies

in organizations.




EXECUTIVE SUMMARY

This year’s study focused solely on industry-leading organizations. Communicators from 75

Fortune 500 companies and dozens of global organizations participated in the survey (see

Methodology p. 30). Among the key findings:

Awareness of new media technologies

• Nearly all respondents reported knowledge of blogs (Web logs), a significant increase

compared to the original 2004 study.

• Awareness of podcasting is high, with more than three-fourths of corporate communicators

citing understanding of the technology.

• Fewer than half of study participants knew what a wiki is.

• Fewer corporate communicators read blogs than adult American Internet users as a whole,

and the number of respondents who have posted to a blog did not increase this year.

Use of employee communications channels

• For the third year in a row, e-mail was listed as the most frequently used communications

vehicle within companies.

• More than three-fourths of organizations use some online tool to share information and

promote best practices, with intranets being the most commonly used channel.

• Nearly one-third of respondents report their organizations host, author or support a blog.

• More than one-third of corporate communicators report their organizations use podcasts.

• Slightly more than 10 percent of leading organizations report the use of wikis.

• Nearly all organizations use an intranet and nearly three-fourths use portal technology.

• Leading organizations are more inclined to use new media channels to communicate with

internal audiences as opposed to external stakeholders.

Effectiveness of communications channels

• For the third year in a row, in-person communications was rated as the most effective

channel to communicate to employees.

• Among organizations that use multiple new media channels, wikis are viewed as the most

effective.

• Blogs are considered a useful tool to impact culture change and identify employee issues

within organizations.




• Respondents rate podcasts as a useful tool for employee training.

• Wikis are seen as a useful tool for collaboration and knowledge management.

Facing the realities of modern communications

• Only 3 percent of respondents said their company monitors employees’ blogging activities,

and nearly two-thirds of corporate communicators are not sure if their organizations monitor

employee blog use.

• Organizations that have a blog (internal or external) are more likely to have a policy

regarding employee blogging, less likely to have a policy that prohibits employees from

posting on external chat rooms and message boards, less likely to prohibit the use of instant

messaging from their computers and less likely to block access to the Internet than

companies that do not have a blog.

Access to electronic communications

• At nearly one-third of industry-leading organizations, fewer than half of employees have

access to a computer at work.




AWARENESS OF NEW MEDIA TECHNOLOGIES

Blogs gained mainstream prominence during the political events of 2003 and 2004, but it took

a while for the technology to fully enter the consciousness of corporate communicators. This

year, all but one of 119 respondents reported knowledge of blogs. Awareness of podcasts was

also very high, with 86 percent of individuals noting they knew of the technology. However,

fewer than half of respondents (48 percent) said they understood what a wiki is.

0

20

40

60

80

100

NoYesNoYesNoYes

Do you know what a blog (Web log) is?

2006 2005 2004

P e r c e n t a g e

99% 1% 83% 17% 59% 41%

P e

r c e n t a g e

0

20

40

60

80

100

NoYes

86% 14%

Do you know what a podcast is?

2006 2005

Do you know what a wiki is?

P e r c e

n t a g e

0

10

20

30

40

50

60

70

80

NoYesNoYes

48% 52% 39% 61%




Awareness does not equal usage

The recognition of new media channels does not necessarily translate into first-hand

familiarity. Fewer than one-third (29 percent) of corporate communicators report reading a

blog regularly; the same number say they have posted to a blog. The number of respondents

reading blogs has increased slightly over last year, but is fewer than the number of adult

American Internet users who view them (39 percent). 4 The number of corporate

communicators who posted to a blog remained the same as in 2005.

What is a wiki?

According to Webster’s New Millennium Dictionary a wiki is “a collaborative Web site set up to allow user editing and

adding of content.” This means that any visitor to the page who is granted permission to contribute can alter the

material that appears on the site. This is different than a standard corporate Web site where visitors cannot add

content, or a blog or message board where visitors can merely add comments. The word wiki is short for wiki-wiki,

which means fast in Hawaiian. The first wiki (WikiWikiWeb) was launched in 1995 by computer programmer Ward

Cunningham.

Wikis are particularly useful for creating libraries of information or developing communications that will evolve.

Perhaps the most famous use of wikis is Wikipedia, an online encyclopedia launched in 2001. As of October 2006,

Wikipedia had more than 1.4 million entries in English and more than 2 million entries in French, Italian, German,

Japanese, Portuguese, Spanish, Dutch, Polish and Swedish.

By allowing multiple users to contribute to a central source, organizations are able to leverage their collective

intelligence. A key benefit of wiki technology is that it does not require users to know HTML in order to edit page

content. In fact, many recent wikis use a What-You-See-Is-What-You-Get (WYSIWYG) editing format that makes

contributions even more intuitive for users. Open-source wiki software is available for organizations to implement

behind firewalls, or wikis can be hosted by commercial providers with a variety of security options.

Due to the open nature of wikis, they are often viewed as vulnerable to vandalism and misinformation campaigns.

However, when used inside an organization, identity controls and monitoring can prevent most abuse.

2006 2005

Do you read a particular blog regularly?

P

e r c e n t a g e

0

20

40

60

80

100

NoYesNoYes

29% 71% 19% 81%




USE OF EMPLOYEE COMMUNICATIONS CHANNELS

For the third consecutive year, respondents listed e-mail as the most frequently used form of

communication in organizations, followed by the company intranet and in-person exchanges.

New media channels (blogs, podcasts, etc.) were rarely mentioned as commonly used forms

of sharing information.

haring with a click of a mouseOne of the greatest challenges among industry-leading organizations, many of which are

decentralized or operate globally, is how to share best practices across the company. Data

reveals that a clear majority of organizations favor using an electronic tool to share information

ith and among employees. The most commonly reported medium was a company intranet,

ith more than three-fourths of respondents leveraging a central, internal online page or

portal.

What channel does your organization use most

frequently to communicate to employees?

Wikis, instant messaging (IM), message boards,

forums and chat rooms received 0%

E-mail

Intranet

In-person

Print

Podcast

Telephone

Blog

Other

53%

28%

12%

2%

2%

1%

1% 1%

2006 2005

Have you ever posted to a blog?

P e

r c e n t a g e

0

10

2030

40

50

60

70

80

NoYesNoYes

29% 71% 29% 71%




Corporate blogs

Nearly one-third (32 percent) of respondents reported that their organizations host, support or

author a blog, up significantly from a year ago (See sidebar).* Communicators are recognizing

blogs as an opportunity to build deeper relationships with stakeholders. “When we first started

going to senior leadership, we positioned the blog as an extension of our brand, and at

Southwest our brand is our people,” says Angela Vargo, senior specialist of business

development at Southwest Airlines and co-creator of the company’s external blog Nuts About

Southwest. This is a forum for our best and major asset, our people, to communicate directly

to the public. A blog is very much supposed to be an extension of a company: whatever they

think, they believe, their mission. That was the selling point.”

Podcast use

While blogs have existed for several

years, podcasting is a relatively recent

addition to the new media mix, with

the term not appearing until early 2004.

However, communicators have been

quick to adopt podcasting, with more

than a third of organizations reporting

podcast use.

Wiki use

The least known of the new media

offerings, wikis are quickly gaining

interest among internal communicators,

with slightly more than one-in-ten

(11 percent) of leading organizations

reporting use of the channel.

2006 2005

Does your organization author,

host or support any blogs?

P e r c e n

t a g e

0

20

40

60

80

100

NoYesNoYes

32% 68% 13% 87%

Does your organization use podcasts?

35%

65%

Yes

No

*Note: The number reported in

this study for blog use by

companies is higher than the

numbers found in research by

other organizations and

individuals. Several reasons

may account for this

discrepancy. Our study looked

at overall use of blogs,

regardless of whether they are

public or private (our data

supports the finding that a

number of companies operate

internal-only blogs), while

some previous work looks only

at external-facing material. In

addition, the assumption can

be made that given the size

and resources of industry-

leading organizations, they may

be more likely to have

implemented blogs in some

manner (such as among

engineering, information

technology or communicationsteams). Some studies have

looked at a broader range of

corporate blog usage, including

smaller, non-Fortune 500 and

non-global companies.

However, we also recognize

that these numbers may be

somewhat inflated due to the

small sample size and the

possibility that companies with

active new media programs

may have been more likely to

participate in the study.

Does your organization use

wiki technology?

11%

89%

Yes

No

Podcasting vs streaming audio

The fundamental differences

between a podcast and

streaming audio are the ability to

download podcasts and load

them onto a portable media

player and the option to

subscribe to a feed and

automatically receive new

podcasts from a particular

source. However, the majority of

podcast listeners never transfer

the audio to a portable player,

preferring to listen on their

computer. While podcasts allow

users to control when and where

they listen to audio, organizations

can reap many of the same

benefits of the medium – more

engaging and dynamic content

delivered by a human voice –

with streaming audio or static

MP3 files.




avoring the firewall

nternal use of new media avoids several risks associated with opening communications

channels to external involvement. Inside of organizations, communicators can moderate,

acilitate and track conversations to ensure that employee participation is contributing to

organizational goals and complies with appropriate standards of behavior.

Communicators have recognized internal implementation as a way to test the usefulness of

new media technologies without facing the risks and uncertainty of the external marketplace.

Nearly one-third (32 percent) of organization blogs are aimed exclusively at internal audiences,

and 19 percent are focused solely on external stakeholders. Perhaps a more significant

indicator of the hesitancy to take a corporate blog public is that more than one-third (37

percent) of respondents said they would never use a blog to communicate externally with

customers and stakeholders. The focus on internal audiences is even more pronounced

among senior executives who choose to blog. Almost two-thirds (58 percent) of senior

executive bloggers aim their writing exclusively at employees. “It’s easier to sell an executive

on internal blogging,” says David Carter, chief technology officer and vice president of strategy

at iUpload, a content management and corporate blogging company that has worked for

everal leading organizations including McDonald’s and Cannondale Bicycle Corporation. “All

hey need to do is audit their ent Mail folder for one-to-many communications that probably

hould have been a post in their internal blog.”

To what audience is your organization’s

blog aimed?

49%

19%

Internal

External

Both

32%

In your opinion, do you think your organization

would consider a blog as a way to communicate

internally with its employees?

43%

19%

38%

Yes

No

Maybe

In your opinion, do you think your organization

would consider a blog as a way to communicate

externally with customers and stakeholders?

Yes

No

Maybe

37%

37%

26%




A BANNER YEAR FOR CEO BLOGGERS

As of the time of publication of this report, only four Fortune 500 CEOs had contributed to a

public blog. While it’s likely that several chief executives contribute to internal blogs, insight

into that content is not available (an exception is Intel CEO Paul Otellini, who began blogging in

December 2004 when he was president of the company. Excerpts from Otellini’s blog were

leaked to the San Jose Mercury News in February 2005). While the blogs examined here are

external forms of communication, it is important to recognize that they still serve as a powerful

employee communications vehicle as workers will visit the site, comment on the material and

discuss posts among themselves. Corporate blogs can become the face and mouth of an

organization online, shaping perceptions in a more personal way than a standard Web site

would. As such, it is critical that employees be considered as an audience for any online effort

whether it is internal or external. The examples listed below demonstrate that there is no one

right or wrong strategy for blogging and that the content and style should reflect the

personality of the author.

Jonathan Schwartz (Sun Microsystems) – When Jonathan Schwartz became CEO of Sun in

April 2006, he became the first Fortune 500 CEO to regularly blog. Schwartz, who since 2004

had been blogging as president and chief operating officer of the company, leads an

organization that has more than 3,000 employee blogs. His blog attracts more than 50,000

visitors a month and caused Schwartz to tell the Associated Press, “The blog has become for

me the single most effective vehicle to communicate to all of our constituencies - developers,

media, analysts and shareholders.”

John Mackey (Whole Foods) – Technically, Mackey became the first Fortune 500 CEO blogger

when he posted an entry in September 2005. However, Mackey posts sporadically, amassing

only seven entries in the first year of his blog. His posts, which are often repurposed writings,

are long, detailed and clearly well-researched, but they lack the spontaneity and

conversational tone commonly associated with blogs.

Does your organization have a CEO or a

member of senior management who blogs?

18%

61%

Yes

No

I'm not sure

My CEO wouldnever blog

17%4%

Who is the audience of your organization’s

CEO/management blog?

18%

58%

Internal

External

Both

24%




Rick Wagoner (General Motors) – In late July 2006, the GM CEO authored a post on the

company’s FastLane Blog. The blog, which originally featured contributions by vice chairman

Bob Lutz and now contains posts from several employees, usually addresses GM products

and programs. Wagoner, however, used the medium to make his case that the company was

making significant progress with its turnaround plan. The post came shortly after GM had

released its second-quarter earnings and addressed several specific company developments

that had already been explained to analysts. The entry garnered dozens of comments, some

supportive and others critical of the company’s actions.

Gary Kelly (Southwest Airlines) – When news broke that Southwest was exploring the idea of

abandoning the company’s well-known open-seating policy, CEO Gary Kelly posted on the

company’s blog, Nuts About Southwest, which launched in April 2006. Kelly’s entry clarified

rumors circulating about the Southwest policy and promised further communication to

customers. The post generated more than 600 comments from readers. Kelly has since added

two additional posts to the blog: one asking for advice on a Halloween costume (complete with

pictures of him from previous years dressed as Gene Simmons of the rock band KISS and

Wild Bill Hickok) and a follow-up entry providing an update on research into the company’s

boarding policies.

EFFECTIVENESS OF COMMUNICATIONS CHANNELS

Repeating the pattern of previous year’s studies, in-person communication was listed by

corporate communicators as the most effective form of communication, followed by e-mail

and the company intranet.

What channel do you find most effective

for communicating to employees?

16%

75%

In-Person

E-mail

Intranet

Print

Telephone

Wiki

4%1%2% 2%




Print versus electronic

The low rating of print publications versus electronic mediums, both in terms of usage and

effectiveness, suggests that communicators at leading organizations have embraced

electronic communication as the primary approach to reach employees. Given the size of

industry-leading organizations and the diversity of their operations, electronic tools pose

several advantages over print communications:

• Connects a global workplace – Online tools provide platforms for corporate communicators

to reach diverse sections of employees and allow workers in different countries, sites and

locations to communicate and collaborate.

• Audience segmentation/moderation – Online tools allow for targeted one-to-one, one-to-

many, many-to-many and many-to-one forms of communications, depending on the context

and goals of the efforts.

• Real-time – Constant connectivity means communications can be received the moment

they are distributed and automatically updated as new information develops.

• Inexpensive – Decreasing broadband and bandwidth costs, combined with savings in

printing and shipping costs, mean that online tools can provide organizations with

significant savings for communications.

• More context – By providing an expanded space for information, a linked environment and

improved search tools, employees can have access to specific information sent, as well as

to related information that’s communicated on an ongoing basis.

• More dynamic – Corporate communicators can use online video and audio capabilities to

make communications more engaging for stakeholders.

• Document trail – By storing and tracking communications, as well as by providing the ability

to follow changes in information, new media channels can document the evolution of

communications in organizations.

• Greater feedback – Electronic communications provide an easy and intuitive outlet for

individuals to collaborate on business operations and strategy, allowing for immediate

and personalized feedback directly to the communicator or user.

• More conversational – Often more free-flowing and informal, online communications often

seem less “corporate” and provide a forum for candid discussions.

• Measurement – Online tools let corporate communicators track the use and comprehension

of material more accurately, allowing for segmentation analysis and documentation of

behavior change.




New media effectiveness

One reason that podcasts may be more attractive than blogs is that they’re a controlled

medium. Podcasts can be scripted and edited, and while many podcasts solicit feedback from

listeners, those comments are not open for viewing the way they are with blogs and wikis.

However, the lack of interaction among users also means that podcasts are a poor

communication channel to promote collaboration or to identify issues within the organization.

Different channels for different goals

While new media is often viewed as a group, each channel offers distinct advantages and

disadvantages. Effective use of new media in organizations must consider the goals of

communications and look to match the appropriate medium in order to leverage messages.

Culture Change – Blogs were listed as the second-most-favorable form of communication for

culture change, trailing only in-person meetings, and one of only two channels to receive a

majority of favorable ratings. The ability of blogs to create a community around issues and

events makes them a powerful tool for culture change. By providing a channel for management

and employees to share stories, and creating a forum for more open discussion, blogs can

help shape a more aware and inclusive organization. “Blogs can help bring humanity back into

the workplace,” says Michael Wiley, senior vice president with Edelman’s me2revolution, who

formerly served as Director of Global Communications Technology and New Media at General

Motors. “We have become so concerned with communicating numbers and processes that

employees have forgotten how to build relationships. How can companies ask employees to

provide superior service and innovative thinking when everything they see and hear flies in the

face of that? Blogs help create a culture that supports those behaviors.”

P e r c e n t a g e

0

10

20

30

40

50

BlogsPodcastsWikis

47% 40% 29%

Provide your opinion of the usefulness of each

channel as a tool to communicate with employees*

*Percent listing useful or very useful




Collaboration – Surprisingly, e-mail rated highly as a collaborative channel, viewed as the

econd-most-favorable tool behind in-person communication; however, this may have been in

part due to the frequency of e-mail use and not an accurate reflection of its benefits. In fact,

while e-mail can be a vehicle to promote collaboration, it’s not in itself a collaborative form oftechnology because it does not provide a shared space for individuals to contribute

imultaneously - like a chat or wiki would. Wikis, which allow many users to provide input in a

hared and evolving space, also scored high in terms of usefulness for collaboration.

Training – This is the area in which organizations appear to rely most heavily on traditional

communications methods such as in-person, intranet and print communications (print

communications received its highest favorability rating for training). This is not unexpected, as

training is likely to be a more prescriptive, top-down form of communications that might notbenefit from the collaborative nature of many new media tools. The form of new media scoring

highest for training is podcasting, which offers an engaging way to communicate information

and largely lacks the two-way aspect of other new media channels. Several leading

organizations including Capital One, Xerox and National Semiconductor have begun

distributing MP3 players to employees to facilitate training programs and information sharing

through podcasts.

P e r c e

n t a g e

0

20

40

60

80

100

PrintWikisPodcastsBlogsE-mailIntranetIn-Person

95% 53% 65% 38% 15% 56% 17%

Rate each communications channel with regards

to collaboration*


P e r c e

n t a g e

0

20

40

60

80

100


97% 47% 38% 54% 38% 27% 47%

Rate each communications channel with regards

to culture change*





Media Monitoring – No communication channel received a majority of favorable ratings for

media monitoring. E-mail and blogs scored highest, with both tools able to easily categorize

and store information.

Trend Analysis/Tracking – Overall, the favorability ratings for trend analysis and tracking were

relatively low, with only blogs garnering high marks from more than one-third of respondents.

Blogs offer employees the ability to aggregate information on a variety of topics, helping

workers identify topics of increased interest. In addition, Really Simple Syndication (RSS, see

box on side) feeds allow employees to track developments in the organization and themarketplace in near real-time.

P e r c e n t a g e

0

10

20

30

40

50


18% 29% 41% 37% 6% 13% 18%

Rate the usefulness of each communications

channel with regards to media monitoring*


P e r c e n

t a g e

0

20

40

60

80

100


92% 71% 30% 9% 46% 31% 55%

Rate each communications channel with regard

to training*


What is RSS (Really Simple

Syndication)?

RSS (sometimes called web

feeds or RSS streams) is a

category of online feeds of

information that allow people to

subscribe to internet content

that others have syndicated. In

essence, RSS means that

people can receive updates onmaterial from numerous Web

sites, blogs, podcasts, etc.

without ever having to navigate

to the pages where the

information is housed. RSS

feeds are received through

aggregators, also commonly

referred to as feed readers,

which can collect and organize

numerous feeds. The result is

that individuals can self-select

the information they want to

receive and the material is

delivered in near real-time and

in an unobtrusive manner.

RSS feeds can be used to

supply people with information

from a variety of sources:

mainstream publications like

The New York Times or Wall

Street Journal, blogs on

industries and companies,

Google search results, etc.

Feed readers can be Web-

based, incorporated into e-mail

or embedded into existing Web

pages.




Identifying Employee Issues – In-person communications is the preferred way to identify

what’s on workers’ minds. Among new media tools, blogs were considered the most favorable.

Monitoring blog posts and comments by employees can be a useful way for communicators to

gauge employee opinions.

Knowledge Management – The highest-rated communications channels for knowledge

management are in-person, intranet and e-mail. However, while these communications

channels are currently viewed as the most favorable, none provides a robust solution to

knowledge for a large and complex organization. In particular, in-person communication,

which lacks a distinct method to capture and store information, is a poor long-term knowledge

management solution. E-mail and intranet also have limited capability to search information

and provide context. “In business, there is a need to change how we manage information,”

says iUpload’s Carter. “If I want to share my business plan, chances are I e-mail it to people

who I think need to see it. However, new employees don’t have a historical inbox of

information. Workers that retire or quit don’t have their e-mail inboxes made public as a

company asset and when someone changes roles their expertise goes with them. That

knowledge is gone forever.” The form of new media that scored the highest for knowledge

management was wikis, which allow multiple users to contribute to a shared library of

information.

P e r c e n t a g e

0

20

40

60

80

100


96% 42% 40% 58% 11% 24% 15%

Rate the usefulness of each communications channel

with regards to identifying employee issues*


P e r c e

n t a g e

0

5

10

15

20

25

30

35


26% 28% 29% 35% 14% 22% 19%


channel with regards to trend analysis/tracking*





P e r c e n t a g e

0

20

40

60

80

100


85% 85% 70% 25% 41% 56% 53%


channel with regards to knowledge management*


tools. Rather, corporate communicators have available an array of options to reach employees

and should adopt channels dependent upon the communications goals and organizational

environment. Furthermore, the results show the value of using a mix of communications

channels to best reach employees and impact knowledge, attitudes and behaviors.




FACING THE REALITIES OF MODERN COMMUNICATIONS

Tracking employee blogging

A mere 13 percent of respondents noted that their organizations monitor blogging by

employees, while nearly two-thirds (64 percent) of communicators didn’t even know if their

companies track employee blog activity. However, when one considers that 9 percent of

American adult Internet users keep a blog, it’s unlikely that any leading organization does nothave employee bloggers. Furthermore, the number of blog authors jumps to 19 percent among

American Internet users ages 12 to 17 and 20 percent among those 22 to 28, meaning that a

generation accustomed to contributing thoughts online will soon be entering the workplace.

Given that 76 percent of bloggers write about personal experiences and 35 percent of

bloggers note that colleagues, co-workers or bosses are aware of their blog, content may

often touch on workplace issues and have an impact on organizational culture.7 The fact that

an organization does not sanction blogging does not mean employees are not talking about

the company online.

One possible explanation for the lack of monitoring of employee communications online is that

it is often viewed as the purview of the IT or HR department. However, since public blogs can

have a significant effect on the organization’s reputation, it’s imperative that corporate

communicators be aware of the conversations taking place among stakeholders. This is

crucial to identify any ethical lapses or inaccurate information and rumors. Additionally,

monitoring internal and external blog content can help identify employee opinions and

perceptions – serving as an organic focus group. Furthermore, identifying employees who are

interested in new media or who are vocal in online communities can help build evangelists for

products and initiatives.

Not surprisingly, companies that have a blog are significantly more likely to track employees’

blogging. These organizations recognize that paying attention to the conversations taking

place online is a valuable way to protect corporate reputation and gain insight into employee

attitudes.

Does your organization track

blogging by employees?

23%

64%

13% Yes

No

I'm not sure

How many

conversations

are you

missing?




Corporate communicators should understand that the only necessary cost associated with

monitoring is the time commitment. There are several free services available online that allow

people to track online conversations about companies, brands and employees (several

organizations, including Edelman, offer monitoring services to companies for a fee). However,

while automated services will aggregate mentions of terms, individuals must still review

content to determine context and significance.

Obstacles to online tools – debunking the myths

This year, we asked communicators to list what they perceived as the greatest obstacles to

the implementation of new media technologies in their organizations. The results demonstrate

that the hesitancy to implement new media stems largely from a misunderstanding of the

infrastructure requirements for the technology and a resistance to experiment with channels

unfamiliar to the organization. We examine the top ten listed obstacles:

1. Inadequate resources (time and/or money) – When weighed against the amount of money

that corporate communicators spend on publication production, media monitoring services

and intranet design, new media initiatives can results in tremendous cost savings. In addition,

many industry-leading organizations are outsourcing tasks like blog tracking and conversation

monitoring to agencies.

2. Disconnected employees – Many new media advocates often forget that a significant

portion of employee populations at leading organizations do not have daily Internet access at

work. These workers should not be ignored and online strategies can be designed with

complementary or redundant offline materials that ensure all employees have the opportunity

for engagement. Aggregating information online can help identify pressing issues and make

subsequent offline efforts more efficient and relevant.

3. Resistance to change – People are wary of strategies they’re not familiar with, so it’s up to

corporate communicators to make the business case for change.

P e r c e n

t a g e

0

5

10

15

20

25

Organizations that do not have a blogOrganizations that have a blog

23% 8%

Does your organization track blogging

by employees?*

*Difference is significant at a 90% confidence interval

What is

holding you

back?




. Desire to control communication/fear of unknown – By adopting new media within

organizations and effectively communicating policies, communicators actually gain more

access to conversations. There’s a perception that empowering new media among employees

will result in a flood of complaints, leaked information and inappropriate conduct. However,

corporate communicators often do not recognize the moderation and security levels possible

with these channels – the most secure of which is to keep participation internal. Furthermore,

information that is inappropriate to distribute through new media is likely to be inappropriate

when communicated through any medium.

5. Not convinced of benefits – Communicators must make a business case for new media,

demonstrating how improved communications and engagement will allow employees to better

execute organizational goals. The low barrier of entry into new media, particularly with internal

implementation, means that the risk is minimal compared to the rewards.

6. Perceived lack of IT capabilities – Many organizations are working with third-parties to

implement new media channels, either adapting products to their needs or allowing for secure,

external hosting. The result is that minimal infrastructure is required to reap the benefits of new

media and most tools can be seamlessly integrated into existing IT structures. While IT should

certainly be consulted on new media initiatives, it is corporate communications that should be

driving, and maintaining, the programs.

7. Culture not accepting – New media should never be forced on a community that’s not ready

for it. Corporate communicators can shape new media implementation, including the

restrictions and policies associated with it, to reflect and support existing organizational

culture.

8. Senior management won’t allow it – In situations where executives resist the implementation

of new media, it is incumbent upon corporate communicators to make a case for adoption. “A

lot of research was done before we launched our blog, listing the potential pitfalls and the pros

and cons,” says Southwest’s Vargo. “Having that research done allowed us to say to

leadership, ‘We understand this is a bit of a leap and seems scary, but the rewards far

outweigh the risks.’ In the end it was actually a pretty easy sell.” When possible, build a

prototype or test a new media program among a sample group of employees.

. Legal/governance/regulation issues – As mentioned earlier, the legal/governance/regulation

issues associated with new media are likely to be covered by existing company guidelines

concerning communications, confidentiality and ethics. In addition, the accountability built into

new media participation can deter inappropriate activities.

10. Would require too much training – Effective new media tools are intuitive and offer a low

barrier to entry. The only obligatory training around these tools is in relation to policies and

ethics associated with the media. The larger issue is engaging employees in contributing and

using content, something that will be influenced by culture, leadership and communications

trategy.




0

10

20

30

40

50

60

Organizationwithout blog

Organizationwith blog





Does your organization have guidelines or a

policy in place regarding employee blogging?

Yes No Not sure

P e r c e n t a g e

48% 25% 44% 60% 8% 16%

0

20

40

60

80

100







Does your organization have a policy prohibiting

employees from posting on external chat rooms

and message boards?

Yes No Not sure

P e r c e n t a g e

15% 23% 81% 57% 4% 20%

0

10

20

30

40

50

60

70

80







Does your organization prohibit the use of

instant messaging from its computers?

Yes No Not sure

P e r c e n t a g e

24% 27% 72% 59% 4% 14%

0

20

40

60

80

100







Does your organization block access to any Web sites?

Yes No Not sure

P e r c e n t a g e

84% 91% 12% 7% 4% 2%

Does your organization prohibit the use of instant

messaging (IM) from its computers?

12%

62%

Yes

No

I'm not sure

26%

Creating a culture of communication

The data reveals that organizations that currently implement social media are less likely to

restrict employee access to online information but are more likely to develop policies around

the use of new media technologies.

This demonstrates that the use of new media technologies is both a product and reflection of

the culture of an organization. By taking a strategic approach to the use of new media

technologies, communicators can ensure that the tools used align with and support either the

existing or desired organizational culture.




One of the strongest arguments in favor of implementing new media technologies within an

enterprise is that employees are likely already using them. With all the free blogs, wikis,

podcasts, instant messaging (IM) platforms and message boards available on the Internet,

employees are able to use a variety of tools to communicate both inside and outside the office.

Workers who use one communication channel outside of work and are prevented from using

that medium at the office may become frustrated and reject existing structures.

By implementing new media technologies, companies are able to keep more conversations

inside of the organization, in a form that they are able to manage. This means that they can

more easily regulate identity, track participation and identify issues as they arise.

Another significant benefit of adopting these tools internally is that the organization then has

ownership of all the intellectual property produced through the communications. When former

Microsoft employee and popular blogger Robert Scoble left the company earlier this year, he

took his site, which is run through the blog platform WordPress and read by thousands of

people each day, with him. If employees use tools outside of the organization, then information

housed there is tied to the worker and will be lost if that individual leaves.




ACCESS TO ELECTRONIC COMMUNICATIONS

Recognizing the digital divide

Organizations looking to implement new media technologies need to recognize the digital

divide that exists in many companies. At nearly one-third (32 percent) of leading organizations,

up to 50 percent of the employee population does not have daily access to a computer at

work. Corporate communicators need to find ways to keep these workers, who often have

customer service or production responsibilities, aligned with business strategy. With their

ability to aggregate information inside the company in a variety of ways, new media tools

package communications in a form that can be easily taken offline. Communicators, who

ideally are paying attention to conversations among employees, can identify the most

meaningful and relevant information. In fact, the use of new media within an organization can

help reduce the resources and time necessary to produce other communications such as

printed internal newsletters.

Accommodating the 24-hour work cycle

Companies are more willing to allow employees to access their work e-mail from home than

they are to provide off-site intranet access. While some of this may be related to the IT issues

of remote intranet access, by eliminating a credible source of company information

organizations invite employees to look elsewhere.

What percentage of your employees

have access to a computer at work?

14%

24%

100%

91% - 99%

81% - 90%

71% - 80%

61% - 70%

51% - 60%

41% - 50%

31% - 40%

21% - 30%

I'm not sure

8%

7%

7%3%

17%

8%

7%5%

What percentage of your organization’s employees

have access to the intranet from home?

38%

62%

Have access

Do not have access




The easier companies make it to access relevant communications provided by the

organization, the more likely it is that individual will view the company as a credible and

meaningful source.

What percentage of your organization’s

employees have access to e-mail from home?

87%

Have access

Do not have access

13%




WHAT THIS MEANS FOR YOUR ORGANIZATION

None of these new media technologies in and of themselves are truly innovative in terms of

what they offer – blogs and wikis are simply easy-to-update Web sites and podcasting is

merely a new way to transmit audio files. What has changed are the expectations individuals

have of the ways they create, receive and share information. Today communications need to

be relevant, interactive, portable and immediate. If organizations are not able to reach

employees, or workers cannot access the information they want, when they want it, the result

is likely to be a disengaged employee. “Communicators who dismiss new media technologies

do their employees and organizations a disservice,” says Jeffrey Treem, analyst with Edelman

Change and Employee Engagement. “The pace of change is quickening and communications

structures need to adjust to meet the demands of the modern business landscape.”

In fact, new media technologies are likely to become ever more engrained in our everyday

lives. Newspapers such as The Washington Post are allowing consumers to comment on every

story online and providing links to bloggers writing on related topics, in effect, turning each

article into a blog post. The current generation of Web browsers have RSS feed readers built

in, allowing people to subscribe to material with the click of a mouse, regardless of whether

they know the technology. The use of podcasts exploded last year when people were able to

listen and download shows, many of them free, through Apple’s popular iTunes Music Store.

Corporate communicators need to take the responsibility of educating themselves and their

organizations about new media technologies. The communications landscape is changing

quickly and organizations need to be able to adjust their strategies accordingly to maintain a

competitive advantage. Three times as many 18- to 26-year-olds read blogs as do adults ages

41 to 50, meaning a generation accustomed to new media technologies will soon be flooding

the workforce.8

The results of this study are not meant to argue that new media is a panacea for internal

communications in organizations. Rather, they point to the need for communicators to

consider a range of options to match the medium with the message. A strategic approach to

internal communications can be a key differentiator for your organization, helping to engage

employees and drive business results.




METHODOLOGY

• Senior communicators at Fortune 500 companies and clients identified as industry-leading

organizations were sent an invitation to participate in the study. In total, 787 survey

invitations were e-mailed to prospective participants.

• 138 responded, resulting in 111 complete surveys. This provided a participation rate of 18percent and a response rate of 4 percent.

• 75 Fortune 500 companies participated in the study.

• Participating Companies include: 3M, Abbott Laboratories, Allstate, American Airlines,

American Express, Aon, AstraZeneca, Boeing, BRP, Caterpillar, Coca-Cola, Dell, Delta Air

Lines, Disney, DTE Energy, Eastman Kodak, EDS, General Electric, General Mills, General

Motors, Goodyear Tire & Rubber, Hewlett-Packard, H.J. Heinz, Honda, Honeywell, IBM,

Johnson & Johnson, McDonalds, Microsoft, Motorola, Nissan, Office Depot, PepsiCo,

Pfizer, Progress Energy, RadioShack, ServiceMaster, Shell, Starbucks, T-Mobile, The Walt

Disney Company, UPS, Wendy’s, Whirlpool, Wrigley, Xerox, Yum! Brands.

VALIDITY

Although every attempt was made to make these results representative of the current internal

communications environment at leading organizations, we recognize that this is not a scientific

study and that there are several threats to the validity of the data:

• Although the sample size of 111 completed surveys is adequate for the population, this

number was smaller for several questions due to the fact that we had multiple respondents

from some companies, and a limited number of companies currently implement new media

technologies. This resulted in a small sample size for some questions, and those resultscannot be said to reflect the population.

• Lack of familiarity with new media technologies may have biased respondents to a neutral

view on the effectiveness of channels.

• Because one of the purposes of the study was to examine the use and effectiveness of new

media technologies, we likely received a disproportionate number of responses from

individuals currently using, or planning to implement new media technologies in their

internal communications mix.

• Although the survey was sent via dedicated links to senior-level communicators at each

organization, we cannot say with any certainty that their answers and opinions accurately

reflect the communications environment in their respective companies.

• Comparisons to previous years’ data may be misrepresentative of actual trends due to

differences in participant enrollment and the varied demographics of participating

companies.




ENDNOTES

1 Sifry, David. “State of the Blogosphere, October, 2006.” Technorati. 6 Nov. 2006.<http://technorati.com/weblog/2006/11/161.html>

2 Klau, Rick. “Expanding Universe: Podcasting Market Update.” urning Questions: the Official FeedBurner Weblog 18 Apr. 2006. <http://blogs.feedburner.com/feedburner/archives/001755.html>.

3 Wikipedia.org and /www.britannica.com/premium

4 “Internet Activites.” Pew Internet & American Life Project. 19 July 2006.< ttp: www.pewinternet.org tren s Internet_Activities_7.19.06. tm>.

5 Hammersly, Ben. “Audible Revolution.” The Guardian. 12 Feb. 2006.< ttp: tec no ogy.guar ian.co.u onine story 0,,1145689,00. tm>

6 Fox, Susannah, and Mary Madden. “Generations Online.” Pew Internet & American Life Project. 22 Jan. 2006.<http://www.pewinternet.org/pdfs/PIP_Generations_Memo.pdf>.

7 Lenhart, Amanda, and Susannah Fox. “Bloggers: a Portrait of the Internet’s New Storytellers.” Pew Internet & American Li e Project. 19 Ju y 2006.<http://www.pewinternet.org/pdfs/PIP%20Bloggers%20Report%20July%2019%202006.pdf>.

8 i, C arene. Listen Up Mar eters: 24% o Gen Yers Rea B ogs. C arene Lis B og. 11 Sept. 2006.<http://blogs.forrester.com/charleneli/2006/09/listen_up_marke.html>.



CONTACTS

If you would like to learn more about how your organization can use a variety of new and

traditional communications channels to effectively reach and engage employees, contact:

Jeffrey Treem

AnalystEdelman Change and Employee Engagement Group

[email protected]

+ 3 2 233 340

Gary Grates

President and Global Director

Edelman Change and Employee Engagement Group

[email protected]

+ 2 2 704 8 84

Kate Feather

Vice President

PeopleMetrics

[email protected]

+ 2 5 979 8037

new frontiers in employee communications, edelman 2006

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