Today, organizations and employees are facing cutbacks and turbulence. If they aren’t laying people off, they’re cutting budgets big time. As entrepreneurs, we know that a slumping economy translates into difficult decisions for the workplace, and how these decisions are carried out impact how employees feel about their organization.

While these tough times are forcing business owners to deliver bad news, it doesn’t have to lead to decreased employee motivation or commitment. Here are a few lessons I've learned regarding how to effectively communicate with staff during difficult times:

Tell them all you know

Hiding details or facts from employees rarely benefits anyone, and employees eventually find out the full truth anyway. If you haven’t been 100 percent upfront with the details from the beginning, your lack of transparency will be held against you in the future.

Tell them when you will know more

Sometimes you don’t know all of the facts or possible outcomes. The best thing you can do is to admit what you don’t know and inform them when you expect to have more information. Of course, you'll want to deliver on your promise to follow up.

Provide options

In uncertain times, entrepreneurs want to know that they have viable options. In the case of layoffs or budget cuts, you may not have a choice when it comes to making tough decisions. However, you can offer options to employees about how the changes will affect them. For example, one struggling organization I know is offering employees a chance to take a lower–paying job or a severance package. At the very least, the choice leaves the employees in control of their own destiny.

Show your pain

These are painful times when people are losing the status quo. It is completely appropriate, and often times welcomed, for the person delivering bad news to show that it's a tough and painful decision. I still remember a former boss of mine who said, "This was one of the hardest decisions I've ever had to make". I believed him.

Don't sugar coat or minimize the message

You may want to deliver the bad news in a way that makes it seem "not so bad". You may even sprinkle in a few "look on the bright sides". While a certain amount of optimism may seem appropriate, be careful not to overdo it. What may seem like "no big deal" to you may be a huge deal to the employee who is hearing the bad news for the first time.

Giving tough messages during tough times can be difficult, but by being honest and forthcoming with your concerns, you’ll set yourself and your staff up for future success.

Provide help

If you are forced to lay off staff, talk to Gemini about providing outplacement services. We can provide a range of services including advising staff on their options, help with CV preparation, introductions to employers. Gemini can provide a hot desk for your staff to work at resume preparation and advice from our consultants on presenting themselves to employers.

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