The Best (and Worst) Ways to Handle Bad News

July 6, 2011

Anyone who has ever held a management position knows how difficult it can be to approach employees with bad news.

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Whether the conversation involves a layoff, merger, or anything else that typically generates negative consequences, bad news can create awkward situations with unwanted results when it is not delivered properly.

The truth is, even if you handle it tactfully, Harvard Business Review contributor Kevin Daley reminds us that bad news may still cause anxiety, hurt productivity, and prompt some employees to begin looking for work elsewhere.

So, how can you – a manager at an expansion stage company – deliver negative news or feedback in a way that will keep you and your employees comfortable and mitigate lost production?

Inc.’s Tim Donnelly recently addressed that issue, providing excellent tips which should help managers and executives start the conversation about layoffs, a bad financial situation, or poor employee performance when it’s necessary to do so.

Here are three key tactics to consider:

Be clear and direct

Brevity is important. Do not build up the announcement or give advanced statements; just get straight to the point. Keep the message brief, direct, and don’t sugarcoat it.

Chris Witt of Sales and Marketing Management always thinks it’s critical for managers to deliver bad news as soon as possible. Delaying the inevitable simply opens you up to speculation, gossip, and rumors. So, rather than letting your employees assume what the bad news might be, tell them exactly what is happening before they hear it from someone else.

Take ownership of the problem

If a decision has been made that affects your employees, take ownership of the decision and be ready to explain what caused it.

Half the battle is appearing poised and confident, suggests The American Speaker. This blog uses the example (both good and bad) of Ohio State University athletic director Gene Smith, who recently announced the resignation of head football coach Jim Tressel.

While Smith makes eye contact, avoids slandering Tressel, and looks ahead to the future, he also uses far too many filler words (Um, Right, and Uh) and is a little too casual with his speech. When you’re delivering bad news to your organization, it’s critical that you’re honest, open, and confident.

Consider your timing and medium for delivery

No one wants to hear bad news from their boss via email. Speak with your employees face to face out of respect, so they can respond directly with questions. In terms of timing, if the bad news is a company-wide announcement, it’s best to wait until late in the day between the middle and end of the week.

But if it’s a serious issue, take action at the start of the day and always allow your employees to ask questions after delivering the news. Another great tip is to take suggestions from your employees. Consider asking them: “What would you do in my shoes?”

In negative – and potentially hostile – situations, employees want to feel like their voice is being heard, writes Andrea Nierenberg for the Small Business Advocate. Soliciting their opinion, thoughts, and feelings will accomplish that. But if you skip that step, the solutions you present won’t carry much weight.

Every company’s situation is different.

 

Expansion stage and startup managers may have a unique relationship with their employees, fostered by a relatively small, closely-knit work environment. And while smaller businesses may handle the delivery of bad news differently than Fortune 500 corporations, the basic principles of Donnelly’s suggestions apply across the board.

So, to summarize, try to avoid making these five common missteps (courtesy of Dana Bristol-Smith at Speak for Success) when delivering bad news:

  • Failing to explain why the situation is happening.
  • Not taking into consideration how employees will feel about the change/situation.
  • Downplaying or sugarcoating the bad news, leading to a lack of comprehension of its importance.
  • Failing to make eye contact.
  • Delivering the bad news via email instead of in person.

 

Your employees will evaluate you as a manager based on your actions in both good times and bad. If you handle bad news poorly, it may sabotage future productivity and have a negative effect on your employee retention.

In order to keep your team working productively and to keep your top employees on board, treat them with respect if and when you must deliver negative news.

Diana Martz is a Recruiting Analyst at OpenView Labs, where she is responsible for recruitment for the firm and its portfolio companies. For more from Diana, you can check out her blog, Happy Hiring, and follow her on Twitter @dianawmartz.

VP, Human Capital

<strong>Diana Martz</strong> is Vice President, Human Capital at<a href="http://www.ta.com/">TA Associates</a>. She was previously the Director of Talent at OpenView.