2023 is set to be a tough year. How do you communicate difficult news to employees? ⬇️

There are a lot of "doom and gloom" predictions about the global economy in 2023. Companies are trying to get ahead of this by tightening their belts and implementing cost-saving measures.  
 
While this may be the right thing to do, it is never pleasant for employees to hear, and it is often challenging to communicate.
 
When communicating bad news to employees, such as cost-cutting measures, leaders typically have two responses:
 
👉They play the ostrich and implement measures but don't tell people what or why they do it. The team implementing these measures is left to explain it.
👉They go into stealth mode – they communicate only to senior leaders, and people are informed on an "as needed" basis.
 
These techniques are understandable. I mean, why tackle something so unpleasant head-on? In the long term, however, such communication techniques can harm employee morale, and negative rumors about your business's health can gain traction, which is never good!
 
❓So, what can you do about it?

Communicating cost-saving measures to employees is indeed tricky. But it also presents a unique opportunity. If you do it right, you can:
 
✅ Gain leadership credibility and trust.
✅ Mobilize employees to put in that extra effort during hard times.
✅ Lay the groundwork for sustained engagement when the business returns to "normal."
 
💡How? Here are three ways:
 
1️⃣ Explain the reasons why.
Providing context will help people get on board. Be sure to balance your negative message with your vision for the future. If you can, position these measures as a way to safeguard your long-term vision and strategy (and remind people what that is).

2️⃣ Own it.
If leaders show transparency and confidence in their decisions, people will respect them for it.

3️⃣ Secure back-up.
Give managers the tools they need to support your message. An easy-to-use communication pack can go a long way. Bonus? Managers are best placed to understand employees' pain points and collect feedback.

We all hope the "doom and gloom" predictions will not come true. Regardless of what happens, when it comes to communicating bad news with employees, it's best not to play the ostrich or go into stealth mode.
 
By tackling complex topics head-on and applying key communication principles, you can avoid aggravating the already-negative impact cost-cutting, and other such decisions can have on employees.

What are the challenges you face when communicating difficult news to employees?