Maintaining Morale While Delivering Bad News

This article was a response to a small business owner's question. Emily Maltby, a CNN Money writer, responded via blog about how to give bad news to your employees while trying to minimize any negative feelings. Richard Ryan owns a small restauraunt that was struggling to stay afloat during the heart of the recession. He only had six employees, but all six lived off of their job at Richard's southwestern grille. His problem was that he had to tell his employees that their hours had to be cut in half. Here's the advice that Emily had...

First, she says that no matter what bad news you are giving them, be sure to be confident when delivering the news. She states that employees aren't dumb. They probably already know that there is trouble brewing. They know the effects a recession has on a business. They also are likely to notice the decrease in customer traffic, so the chances are that they have put two and two together. So as an owner or manager you have to be open and honest.

You acknowledge what they already know and then tell them what changes have to be made in order to remain open. When delivering your message, it's a good idea to include a message of hope. Let them know that by taking these steps you don't anticipate having to close your doors. Most downturns in business that are caused by the economy are temporary. In the article Emily states, "You should try and spell out the expected duration, then paint them a clear picture of what this will ultimately mean for the business when it's over."

Finally, the key to keeping employees motivated is to emphasize to them that everyone within the organization is in it together. The employees should be involved in the planning phases of rebuilding/restructuring. Employees often times have the best ideas on how to contain costs and increase sales.

Delivering bad news is never fun, but as a leader you have to be confident and reassuring when delivering. It's hard to please everyone within an organization but if you effectively send the message your employees will understand the need to step up their game. Leaders just have to roll up their sleeves and assist employees and vise versa in helping the business recover.

Team Three
Sunny Shah