Effective communication during a downturn plays a crucial role in motivating and retaining staff, says new research.

According to Engaging Employees in a Downturn, a study by internal communications specialists Threshold, the extent to which employees are confident that their company has a clear plan to withstand recession correlates directly with their motivation and long-term commitment.

But the research suggests that employers are failing to meet the communications needs of their employees. Only 40% of employees feel confident that their organisation has a clear plan to withstand recession and just 26% report that their organization has talked through plans with them.

The research, carried out by YouGov on behalf of Threshold Communications, took place in January and March 2009 with a total sample size of 1,913 full-time employees.

While the survey found that most employees were not confident that their organisation has a clear plan to withstand recession, it also revealed that employees are considerably more likely to trust their direct line manager, than they are to trust more senior leaders in their organisation.

At the same time, only 32% of employees feel that the way in which their line manager works with them supports their motivation.