MHA's Executive Briefing

Gone, but Not Forgotten

No company likes to dismiss its talented employees because of a rotten economy. But there's a way to keep people working with you even after they stop working for you. Here is a five-point program on how to build a successful alumni network for your company.

The value of water cooler talk

A new survey finds that employees are more likely to hear about changes to their workplace at the proverbial water cooler rather than straight from their bosses. In fact, 63% of employees in the U.S. say they usually hear about important business matters first through rumor, according to research just published by consulting firm ISR. The firm found that rumors prevail because many business leaders are poor communicators. The end result: employees feel left out of decision making and less inclined to put in the extra effort needed to make their organization a success.

And the research, involving 57 multinational companies over the two-year study, shows there is a significant cost to poor and delayed communication as well. In companies where an above average number of employees say they are kept informed, stock prices rose an average of $7.80. In companies where a below average number of employees say they are kept informed, share prices fell by an average of $8.10--a price swing of nearly $16 a share. (via Fast Company Now)