Managing bad news

One question that PR teams will be hearing regularly from management in these times of recession is “how do we tell our loyal employees the bad news?” Plenty of companies have been in the news recently with first class examples of how not to do this, but there have been very few cases of successful delivery of the words none of them want to hear.

The key to making redundancies or implementing pay cuts without causing too much heartache and protest is simple. Keep employees informed, involve them as much as possible in the planning stages, ask for their opinions, and recognise their loyalty to your business.

We all saw the pictures of protesters outside the MINI plant who turned up to work only to be told there were no longer jobs for any of them. They were given no prior warning, no explanation, and no financial help or training to help them find new employment. They felt as if they just didn’t matter.

If employees are involved in important decisions made by their employer then they will feel a sense of solidarity and ownership towards the business. They are more likely to club together and unite behind the cause, and will be more willing to take a day’s unpaid leave, or a pay cut, because they feel like their contribution is helping save the business they are proud to work for.

This recession is played out 24/7 on the news, radio and in the written press, and everyone knows what is happening. Employees understand that businesses across the world are struggling, and they are intelligent enough to know that no one is safe, including them. They will see other businesses on the news making redundancies, and will be hoping that it won’t happen in their workplace.

If you start to notice a slip in business, call a meeting to warn your staff. If you start thinking about redundancies, get your staff together to brainstorm other ways of saving money, and ask them what they would be prepared to sacrifice. If you really need to make people redundant, speak to them personally in advance, and offer anything you can to help make the process easier, such as one day training courses, days off to attend interviews, or excellent references. Don’t be scared of being honest. Your employees will respect you for this and will be much more cooperative.

Don’t forget the unions, which can be particularly influential, both positively and negatively, in these times. Involve them from the start, work with them, not against them, and they will be more likely to fight your corner. Hide things from them, and spring redundancies on employees, and they will incite protest, disloyalty and resentfulness.

Train your middle management and line managers to ensure they know the key messages and are capable of presenting to their reportees. Arm them with as much information as you can so they can answer anything the employees have to ask. If you are reading this and you are a senior manager, make yourself visible, speak to your staff and make sure they know just how important they are to you.

Finally, make sure your plans don’t get leaked to the press. They don’t want to read their job is in danger on the front page of the newspaper! They might just choke on their cornflakes!