CUP OF CORPORATE COMMS: AN UNFILTERED LOOK AT WHAT PERCOLATED IN AUGUST

Below are key themes that dominated corporate communications news in August 2024 — and we’re briefing you on all of them in this month’s edition of Cup of Corporate Comms. 

Polarized conversations—and the need to handle them—are on the rise at work. 

Polarized conversations at work are increasingly mirroring the division seen in society, creating a complex dynamic that can impact team relationships, engagement, productivity, and overall performance. According to a recent Gallup survey, many employees are reluctant to discuss politics at work due to potential conflicts, yet the conversations persist, fueled by the heightened political climate in the U.S. A report from HR Dive found that nearly half of employees would consider quitting if they felt their political beliefs clashed with those of their colleagues or the company, underscoring the need for clear guidelines to manage these discussions. The Washington Post highlighted the delicate balance organizations must strike between promoting open dialogue and maintaining a harmonious work environment. As illustrated in recent insights from The Wall Street Journal and Forbes, effective approaches to finding the right balance range from setting ground rules for sensitive discussions to creating safe spaces for diverse viewpoints, allowing teams to focus on collaboration without fear of alienation. 

Bottom line: To maintain a productive and inclusive workplace, organizations must develop clear guidelines and equip managers with practical tools to handle polarized conversations. By fostering a culture of respect and understanding, leaders and communicators can help mitigate the risks of polarization, safeguard employee engagement and promote a healthy, cohesive work environment. 

Companies are still trying to find their footing on how to talk about ESG. 

As companies face increasing scrutiny and backlash around ESG (environmental, social and governance) initiatives, many are reevaluating what it means to be a responsible business, and how they communicate their commitments and actions both internally and externally. The Wall Street Journal reported that some companies are opting for a more subdued approach to discussing sustainability, focusing less on flashy marketing and more on demonstrating tangible impact. HBR suggested that companies moving beyond traditional ESG frameworks are shifting towards aligning their values directly with their business strategies, which involves integrating social activism into corporate governance structures. Five years after the Business Roundtable’s stakeholder capitalism pledge, another HBR article examined the effectiveness and challenges of balancing stakeholder needs while ensuring business growth, concluding that stakeholder capitalism still holds value if approached authentically. Additionally, HR Dive emphasized the importance of embedding social activism into corporate governance, citing that companies are increasingly looking to their boards to navigate the complexities of ESG and make decisions that reflect a broader commitment to societal impact. 

Bottom line: For businesses navigating the evolving landscape of ESG, less is more.  

Communicators should guide their companies towards aligning values with actionable business strategies, emphasizing clearer, more focused communication strategies that prioritize impact and measurable actions over broad, sweeping statements. This shift can build genuine trust with stakeholders, reflecting a deeper commitment to responsible business practices. 

While some companies are stepping back, the broader desire for DEI persists. 

As covered in our July Cup of Corporate Comms, several companies have continued to scale back their DEI (diversity, equity and inclusion) efforts, reflecting a growing trend of retreat in this space. The Washington Post and Fast Company reported that U.S. companies like Lowe’s and Ford are reconsidering or even dropping some of their DEI commitments, driven in part by external political and societal pressures. This pullback is raising concerns among employees and advocacy groups, as highlighted by Axios, which notes that these changes could impact the perception of company cultures and their inclusiveness. However, a contrasting narrative also exists. Fortune and HR Dive suggest that while some organizations are rolling back, the fundamental support for DEI remains robust among employees and customers, who still see value in these initiatives despite the backlash. As Forbes underscores, while there is a slight dip in enthusiasm due to the contentious climate, a significant portion of the workforce still views DEI as a core component of a healthy workplace.  

Bottom line: While scaling back may align with certain external pressures, it risks alienating employees and consumers who still view DEI as crucial for fostering a fair and inclusive workplace culture. Communicators should emphasize their company’s ongoing commitment to inclusive practices, even if adjustments are being made, and reinforce alignment with the values and expectations of a diverse workforce to maintain trust and engagement. 

Trust is key to employee happiness—and employee happiness is key to company performance.  

In the employee engagement space, recent coverage focused on the strong link between employee happiness, well-being and trust in leadership. A compelling Fast Company article explored the “happiness gap” at work, drawing lessons from Finland and Denmark—two of the world’s happiest countries—where trust in leadership plays a central role in fostering productivity and wellbeing. This theme is echoed in the latest Glassdoor Employee Confidence Index, which reveals a growing lack of faith in leadership decision-making among employees, suggesting employee happiness is not just about perks or pay—it’s deeply tied to trust and transparency from those at the top. In a related piece, the Financial Times highlighted that some investors are beginning to look at employee happiness as a critical factor in evaluating company performance. This evolving perspective underlines a crucial point for corporate leaders: employee well-being is not only a moral imperative but also a key driver of organizational success. Insights from Forbes and Chief Executive echoed this, stressing that genuine efforts to boost happiness—like fostering a sense of belonging and centering purpose—are more effective when they build trust. In contrast, Inc. and Fortune reported rising levels of employee burnout and disillusionment, further highlighting the urgency for leaders to act. 

Bottom line: Trust is not just a soft skill—it’s a measurable driver of engagement, productivity and long-term success. To close the happiness gap and combat burnout, organizations need to cultivate trust at all levels. Communicators play a pivotal role in this effort by creating and reinforcing moments where trust is built and sustained. Leaders must consistently communicate the “what,” “how” and “why” behind their decisions, ensuring transparency and alignment with a sense of purpose.  

Performance feedback needs to be clear, unbiased and gender-neutral. 

A regular topic from past coverage is the importance of clear and consistent performance management for motivating employees—and how many companies fall short when it comes to equipping managers with the skills needed to deliver feedback effectively. A recent McKinsey report underscored that employees are most motivated by straightforward, regular feedback aligned with their goals and growth. However, research from Fortune revealed that high-performing women are often subject to vague, unhelpful feedback, such as being labeled “opinionated” or “abrasive,” which not only undermines their confidence but also drives them to quit. A related Fortune piece also highlighted an eye-opening statistic: About 76% of top-performing working women received negative feedback from their bosses compared to just 2% of high-achieving men—suggesting it has to do with managers’ unconscious bias, judging women more critically. On a positive note, Fast Company focused on a neuroscience-backed, three-step approach to performance reviews that makes them more impactful and less anxiety-inducing for both parties.  

Bottom line: Beyond having a well-structured feedback process, organizations also need to ensure managers have the tools and training to be effective communicators. For performance management to truly motivate and retain top talent, companies must invest in coaching managers to deliver feedback that is clear, unbiased, gender-neutral and specific to the individual, so they can tailor their feedback in ways that genuinely resonate with each employee.