The Critical Role of Internal Communication During a Crisis

Last Monday, the Trump administration issued an executive order freezing federal grants and loan dispersants appropriated by Congress, creating uncertainty for countless organizations nationwide. For many nonprofits reliant on federal funding, the situation was dire—without those funds, they faced the possibility of shutting down, laying off employees, and halting services.

The Office of Management and Budget (OMB) implemented the freeze, but District Judge Loren L. AliKhan blocked it with a short-term administrative stay. The following day, the administration rescinded the OMB memo, offering temporary relief. However, White House Press Secretary Karoline Leavitt clarified that the funding freeze itself remained in full effect. Days later, Chief Judge John J. McConnell Jr. issued a temporary restraining order, citing constitutional violations and highlighting that, despite rescinding the memo, the administration continued enforcing the funding freeze.

Clear as mud.

The chaos of last week demonstrates just how quickly a crisis can unfold and how organizations must be prepared to respond—both internally and externally.

The communications steps are often clearer when managing external communications during a crisis: ensuring key stakeholders, the media, and the public receive timely, accurate updates. But communications internally has to come first and without a crystal-clear internal communications strategy, employees can be left in the dark, anxious, and unprepared to navigate the situation. During a crisis, emotions run high, information evolves quickly, and leaders must strike a delicate balance between addressing concerns while learning the full picture of the crisis, all the while keeping the organization moving forward. It’s not fair, but leaders in a crisis must move quickly and handle multiple tasks simultaneously. This is possible when you have a plan.

Internal communication must be empathetic yet direct. It must be transparent yet measured. And, most importantly, it must empower employees with the information they need to do their jobs effectively while building trust.

While every crisis situation requires a different response, here are some general guidelines to get you started. (An additional resource – we wrote about the importance of having a formal crisis communication plan on hand a few weeks ago.)

Equip Leaders to Lead

Senior leaders and managers should be informed before the larger staff and given the tools to support their teams effectively. They need to be prepared to answer questions, provide reassurance, and lead with empathy. Equip them with talking points, FAQs, and any necessary training to ensure consistency in messaging across the organization. Use them as thought partners to anticipate additional questions and roadblocks.

Inform Staff Before External Stakeholders

If your employees learn about a crisis from the news or an external source before hearing it from leadership, trust is broken. Staff should always be the first to know so they can be prepared to respond to inquiries, reassure stakeholders, and avoid misinformation spreading internally. 

Be Transparent, But Strategic

Employees need clarity, not every detail. Clearly communicate what is known, what is unknown, and what leadership is doing to navigate the situation. If certain details are sensitive or not for public consumption, make that explicitly clear. Transparency fosters trust and minimizes speculation and misinformation. A direct line from the leader(s) to the team makes clear the number one source of information for everyone is from the organization’s official channel.

Establish a Clear Communication Process

In the midst of a crisis, ambiguity leads to chaos. Evaluate and provide information on questions such as:

1. How will the leadership team come together to align? (Early and as often as needed. Consider creating a “planning room” to be together to ensure updates are shared uniformly and quickly.)

2. How will updates be shared internally and with the board from leadership, and how often? For instance, can they expect an all-hands meeting tomorrow, an organization-wide email by the end of the day, or intermittent updates on Teams/Slack?

3. What key audiences need an update as soon as possible after the internal communications plan is launched?

4. Who is authorized to speak on behalf of the organization externally?

5. What is the policy for sharing information on personal channels, including employees’ personal company email, social media channels, etc.? 

6. Who can they turn to for questions or concerns?

Clarity in these areas prevents confusion and ensures a unified response.

Provide Resources and Support

A crisis can take an emotional toll on employees. Make sure they are aware of any resources available to them, such as employee assistance programs (EAPs) that offer counseling services. If employees have financial concerns, communicate any benefits or support systems that can help them navigate uncertainty. Let them know where they can turn for guidance and reassurance. Can any work pause as people catch their breath?

Take Care of Your People to Take Care of the Organization.

In a crisis, internal communication is not an afterthought—it is mission-critical and it should come first. How an organization communicates with its employees directly impacts how well it can respond to external challenges. Employees who are informed, supported, and empowered will not only navigate the crisis more effectively but will also help the organization maintain trust and stability in the long run.

A well-executed internal communications strategy ensures that even in moments of uncertainty, your team remains aligned, resilient, and ready to move forward together.

Additional Resource:

From The EO Report: How to Create a Crisis Communications Plan