Delivering Bad News to Your Employees

We all know how difficult it can be to approach employees with bad news such as a layoff, a merger, or anything that can generate negative consequences. How can you, as a manager at an expansion stage company, deliver negative news or feedback in a way that is most comfortable for you and your employees?

A recent article on Inc. provided some excellent tips:

Don’t Avoid It. The first and most important tip is to not avoid delivering bad news once you receive it. While you may want to procrastinate communicating negative information, the delay only makes it worse. This is especially true when you avoid giving negative feedback to employees regarding their performance. This type of feedback should not be delayed because the performance issues are likely to continue without it, potentially resulting in lost time, money, and increased frustration for you as a manager. Particularly if it is a single-employee issue, address the problem as soon as it arises. If it is a company-wide announcement (such as a merger or negative financial news), take charge if you are a member of the company’s management team, and address the issue quickly. Rumors begin when these issues delay, and you would not want to risk losing some of your best employees due to fear of the unknown.

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 sugar-coat it.

Take Ownership of the Problem. If a decision has been made that affects your employees, take ownership of the decision. Be ready to explain what caused the decision.

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 it is a company-wide announcement, it is considered best to wait until late in the day between the middle and end of the week. But if it is a serious issue, take action at the start of the day. Always allow your employees to ask questions after delivering such news. Another great tip is to take suggestions from your employees as to how you can improve the situation by asking, “What would you do in my shoes?”

Your employees will evaluate you as a manager based on your actions in both good times and bad, and handling bad news poorly 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.