South-Western - Management  
Employers must be up front with employees, who are well equipped to cut through the spin
Topic Spinning the truth to employees
Key Words Business communications, loyalty, productivity
InfoTrac Reference A112230844
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News Story

According to a new study about half of American workers believe their companies generally tell employees the truth. The other half of the American workforce, meanwhile, is increasingly cynical about the quality of information it gets from its employers. They charge their employers, in particular senior management to 'spin' the truth when talking to them, more so than when talking to either customers or shareholders.

While misleading employees is rarely prosecuted, it may not be a smart move in the long run. Employees may find the truth anyway, as they have access to other sources for information. Furthermore, keeping employees well-informed is likely to raise productivity, loyalty, and the ability of employees to contribute meaningfully.

Questions
1.

Why are so many employers "spinning" the truth to their employees?

2.

Should companies always be truthful to their employees?

Source Paul Holmes, "Employers must be up front with employees, who are well equipped to cut through the spin," PR Week (US), Jan 19, 2004 (Towers Perrin research http://www.holmesreport.com).
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