Five Guidelines For Delivering The News

Sharing bad news is never easy, but the following five guidelines can make it less stressful and difficult, both for the messengers—the managers—and those on the receiving end—the employees.

Guideline 1: Communicate Frequently to Get Employees in the Habit of Hearing about Changes in the Organization

Cost cutting is easiest if employees understand why the changes are necessary in terms of the company’s current economic status and the overall economy. Specifically, they want to know how many workers will be affected, in which areas and departments of the company, and at what levels. In a sluggish economy, unfortunately, it is easier to get everyone on board about accepting changes because fewer outside job options exist.

The Employers Association Inc. in Minneapolis, Minnesota, a membership organization of 1700 employers, described its current business issues in the context of the economy and then explained exactly what it was going to do. Susan Eskedahl, CCP, senior manager, said that if the firm had to reduce benefits, it would explain why via one-on-one and departmental meetings.

Another approach to keeping the channels of communication open as the best way to get staff to accept change, in good and bad times, is discussed by Terri Anne Lacobucci, human resources director at International Knife & Saw Inc. in Cincinnati, Ohio. Her company leaders talk with people, with staff face to face, if a crisis arises. For everyday updates, employees are kept abreast of company news through e-mails and postings for those who don’t use e-mail. Some may not like so much communication, she said, but at least it’s available if they want it. Similarly, at World Now in New York City, the CEO delivers news through a state-of-the-world e-mail message. Some companies use several media channels. One health-care system in Houston deploys an internal newsletter, leadership meetings for management, and updates for all employees.

Guideline 2: Devise a Clear, Consistent Communications Plan to Disseminate news to the Entire Organization, so There’s Less Chance for Rumors to Spread

The company has to decide what the news is and who is going to sign off on the information (it can be a group of upper management, the head of the company, a department manager, the public relations department, or the human resources director). The company also has to decide how the news will be imparted based on the type of news—whether it’s typical corporate business or an emergency. The firm might call an all-company meeting or choose to disseminate news through a town-hall-style gathering, individual department meetings, company e-mails or memos, or letters sent home (if matters are more sensitive or private).

The specific approach depends on a number of factors, such as the size of the organization, whether employees work at one central location or many, or how employees are use to receiving information. Gathering everyone together when there are thousands of employees or even hundreds at multiple sites may prove too difficult. The Employers Association in Minneapolis, which employs fewer than 100, has the luxury, however, to make decisions at the senior management level and then gather employees into smaller groups for quick dissemination.

Besides size and location, the decision may hinge on the culture of the company. Some corporate heads like to share the news. The director of a security services company notes that his company’s strategy is for the head to present a concept in a face-to-face meeting of top management, which is about 15 people, and then to provide the news at that point from the top down to everyone in e-mails. The human resources staff fills in the specifics.

There are four critical protocols that should be part of the communications plan, especially if the announcement relates to a crisis.

Official News Source. During a crisis people don’t know who or what to believe. Rumors are rampant. To make sure the company gets its message out to employees, official “news” sources of information should be designated. This is more important today than ever because there are so many ways that news can be disseminated, whether through traditional sources or the Internet. In a one-location company, everything is under one roof. It is relatively easy to manage the communications process. However, with multiple locations potential problems abound. The company must designate how official information will be communicated. The official news source in most companies is either a special designated spokesperson or a communications/public relations department devoted to information dissemination.

The Rumor Hotline. A novel approach that numerous companies use is a rumor hotline, which is a means for employees to verify information heard unofficially. It works through phone and/or e-mail by providing a means for staff to report information or ask questions 24 hours a day. For example, if somebody hears that a plant in Iowa is going to be closed, the person can call the hotline and ask for verification. Usually, answers are promised within 24 hours either by return voice mail or e-mail.

Timing. The most important part of timing is consistency. The company should set expectations regarding how often information will be disseminated. This will focus employees on expected announcements at regular intervals. Once a schedule has been set, it is important to meet deadlines. If not, employees may read unintended meaning into the lack of communication. Even if there is nothing new to report, a deadline should not be missed. An update saying nothing has changed should be reported to allay fears or rumors. This disciplined approach pays off to keep people focused, informed, and ready to build confidence in management and the company. It makes employees feel the company is reliable during a crisis and is taking care of their interests.

Official Channels. Once the company has established official sources and timing, official channels should be designated. This will facilitate clarity on where information will come from and what to watch. Channels include written letters, e-mails, and in-person meetings. Each channel is suitable for a different type of communication. Table 4-1 outlines the spectrum of communications available and employee audiences that are appropriate for each. (Chapter 9 on implementing layoffs provides more detail on how to communicate layoffs effectively.) The media can range from personal one-on-one interactive discussions to broad-based, company-wide, one-way communications. The trick is to match the type of message to the appropriate medium. The hardest part is in the middle of the spectrum where group meetings are advised. In this case, managers may need to set up an interactive format but control disruptions from disgruntled individuals who want to take out their frustrations in a public forum.

Communication channels are important because they carry the message managers want to make. Not all channels are equally appropriate for all messages. As the company undergoes up to three rounds of cost cutting, care must be taken to put the right message on the right channel. Table 4-2 summarizes the appropriate messages for each channel.

For changes in personal status such as job assignments or termination, personal meetings and letters are appropriate. If the issues are more applicable to a work group, group meetings will suffice. Finally, mass meetings and other mass media make sense for company-wide communications. It also makes sense to combine these channels sometimes. More intimate discussions and meetings will often follow mass communication.

Table 4-1: Channels for Communications in a Business Crisis

Communication Medium	One-on-one meeting	Personal letter or e-mail	Small group meeting	Large group meeting	Mass meeting	Video conference	Newsletter or mass e-mail
Audience	Personal	Personal	Team	Department	Division	Company	Company

Table 4-2: How to Use Communication Channels

Channel	Personal Information on Change of Status	Team or Departmentwide Changes	Companywide Changes
One-on-one meeting	X
Personal letter or e-mail	X
Small group meeting		X
Large group meeting		X
Mass meeting			X
Video conference			X
Newsletter			X
Mass e-mail			X

Companies use communication channels in a variety of ways. Many emphasize the importance of in-person meetings so questions can be asked and rumors forestalled. Ron Van Iderstine, Dallas’ Parkland Hospital’s director of employment, said his company opts for face-to face contact rather than to send e-mails. One Ohio company, which tends to direct its news to specific divisions rather than company-wide, says that an appropriate manager might travel to each of its six facilities to conduct small meetings.

E-mails or letters are acceptable as generalized information because they apply to a large number of people. Parkland did so when it announced a differential in holiday pay. It sent e-mails and letters, the latter for those without access to the Internet. It has found that multiple channels ensure the word gets out to everyone, whether technologically savvy or not.

Life Cell in Branchburg, New Jersey, a biotech firm with 150 employees, disseminates bad news departmentally whenever possible if several people are affected. If only one person in the department is let go, the boss tells that employee in a one-on-one session. If a large layoff occurs, an all-employee meeting is called, and employees are walked through the decision-making process.

Judy Colyn, human resources manager, cites company policy. Once decisions were made they were discussed at the quarterly Town Hall meetings. Employee questions were answered and morale was minimally affected. In fact, one employee commented she had considered leaving, but after hearing management’s thought process and concern for employees, she knew “this is the kind of company I want.”

The Communications Action Plan. A communications action plan is the result of choosing protocols and establishing communications channels. Table 4-3 shows what a communications action plan looks like.

The complete communications action plan should be developed before the communications process begins. The action plan puts together official communications, channels, and timing into a coherent framework. For some events specific timing is not known, so managers need to specify expected dates that will be subject to change.

The president of Parkland Health & Hospital System in Dallas, Texas, likes to send letters, as he did when announcing the option of early retirement. The letters were sent to eligible employees’ homes.

Table 4-3: A Communications Action Plan

Subject	Communicator	Channel	Timing
We have a company crisis	President	Mass meeting	January 5
Progress on company turnaround	President	Video conference	Monthly
We must reduce the merit pay budget	Vice president of human resources	Mass e-mail	March 10
We will begin a job share program	Vice president of operations	Department meeting	March 10
Job share opportunity	Department manager	One-on-one meeting	March 11–20
We will have to lay off 5 percent	President	Mass meeting	June 1
Layoff discussions	Department manager	Department and one-on-one meetings	June 2–6

They also explained that the organization was not sure whether it might have to conduct layoffs if an insufficient number of people did not come forward and volunteer. The letters were followed up with seminars and counseling to educate workers how the early retirement would work, and a time frame of several months was offered for decisions to be made. Compensation manager Jane Mason said that the tone was positive, and no layoffs were necessary because 200 employees elected to leave.

Finally, it’s important that any messages from different departments or levels be consistent. This can be done by gathering managers together and giving them a script that they don’t digress from. Managers should practice if they need to once given the information.

Guideline 3: Decide Whether a Member of the Human Resources Department or a Company Attorney Should Be Present in the Case of Job Cuts

Many companies believe that a third party, either an HR member or the firm’s lawyer, should be excluded from the discussion unless trouble is expected. It can set the wrong tone and make the meeting more intimidating for everyone.

Other companies disagree. Some think having such a person present will make the news easier to present from the get-go, make it easier to respond to specific questions, and make it easier to disseminate information about timetables.

A third option is to have such a third person available once the initial news is provided so that questions can be directed to the right parties within the organization quickly.

To avoid any legal entanglements, some companies have a termination scripted so the manager conducting the layoff is not derailed in any way. The statement, usually drafted by a corporate attorney, is short and to the point.

Guideline 4: Provide the Facts Needed and Never Make a Promise That Cannot Be Kept 100 Percent

Employees want to know specifics no matter what the subject. If there is a pay freeze, they want to know how long it will last. If there is a change in overtime policy, they will want to know the specifics. If there is one round of layoffs, there might be more, and employees should not be promised that terminations will stop. Most important, managers delivering news should be prepared with backup facts and should have rehearsed giving answers to questions typically asked. In advance they can write a script, practice answers, and anticipate questions.

Telling the truth to employees always works best whether the news to be shared is good or bad. If bad news isn’t communicated to employees, it can turn into rumor and innuendo. Moreover, employees may lose trust in leadership. They may feel disengaged in the company. As a result morale may sink and productivity may drop. But when company leaders are honest, treat people with respect, are open about corporate problems, and share facts as fully as possible, employees typically want to help in whatever way they can. This is especially crucial for employees who remain after the layoffs have taken place.

Guideline 5: Follow Up by Periodically Checking the Pulse of Employees and Seeing Whether Survivors Continue to Remain with the Company

A sense of relief may develop once the messages have been shared among those who haven’t been cut, but that euphoria or optimism may quickly wane if the business doesn’t turn around and more employees must be cut. Good supervisors manage by walking around, talking to staff, finding out how they feel not just on the days when messages are delivered but afterward and on a continuing basis.

Additional steps are to meet informally in small groups, meet in one-on-one sessions, have coffee or lunch with those in a department, and keep lines of communication open.