Few Multinationals Have Effective GlobalCommunication Programs, Watson Wyatt Study Finds

WASHINGTON, January 31, 2006 - By their own admission, few U.S. multinationals are doing a good job when it comes to communicating with their employees and business units around the world, according to research by Watson Wyatt Worldwide, a global human capital consulting firm.

In its 2005/2006 Communication ROI Study^TM, Watson Wyatt found that fewer than half of U.S. companies with global operations said they are doing an effective job with their global communication.  According to the study, only three out of 10 global companies have designated communication resources in other countries, and even fewer (18 percent) have a formal, documented global communication strategy.  About 60 percent of the 335 companies surveyed have global operations, and relatively few have taken steps to communicate with their global workforce.

Communicating With Global Employees/Operations
Communication Initiative        Percentage of Employers
Requires business unit or local manager
to customize corporate messages 31%
Designates communication resources in other countries   30%
Shares best practices with global communication colleagues      21%
Maintains global communication committee/advisory group 20%
Establishes documented global communication strategy    18%

"With more companies becoming global, the challenges of communicating effectively with workers have become much more complex," said Robert Wesselkamper, director of international consulting at Watson Wyatt.  "To be truly global, employees throughout the world need to feel like they are part of the company´s overall strategy.  Making sure all employees receive the same information is crucial to that effort."

One of the study´s other key findings for global employers is that less than 20 percent customize their corporate communication messages for workers in other countries.  Instead, many companies rely on their local managers to interpret and deliver messages, with little communication training or support.

"One way for organizations to make sure their messages are heard in all offices is to integrate the global communication programs into the company´s overall communication strategy," said Kathryn Yates, global director of communication consulting at Watson Wyatt.  "Companies may also want to consider forming a global advisory group to identify and voice local needs, customize the message and make sure local managers are up to speed."

Copies of Watson Wyatt´s 2005/2006 Communication ROI Study, Effective Communication: A Leading Indicator of Financial Performance, are available at www.watsonwyatt.com.

About Watson Wyatt
Watson Wyatt (NYSE: WW) is a leading global human capital and financial management consulting firm.  The firm specializes in employee benefits, human capital strategies, technology solutions, and insurance and financial services.  Watson Wyatt has 6,000 associates in 30 countries and is located on the Web at www.watsonwyatt.com.

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