It's tough times lately in the workplace. Colleagues come to meetings late, with tales of layoffs on their lips. One person's careless remark about a drop in sales causes a roomful of people to stiffen. I hear stories about managers who tell staff that "there is no reason to worry" on Friday followed by laying those same people off on Monday.
Lies and Fear abound.
I can understand the fear part. After all, when business drops off a cliff it's only natural to be fearful. Like any animal, we're all out looking for where our next meal comes from. With uncertainty comes a measure of wariness and worry.
While fear is understandable, I don't understand the lies. As management teams struggle with the issue of revenue and budgets, I understand the struggle to make good decisions but I don't understand the deceit. Why hide the fact that times are uncertain, or that revenue has fallen? Why hide those discussions under a cloak of secrecy?
When leaders are afraid to say the truth, and then they are forced to act on it later, people note the hypocrisy. They resent the false security that management creates for them, and their faith in leadership, already shaken, falters.
There are many that would call my call for honesty naive. After all, if employees knew how dire the situation was, wouldn't they be distracted? Too worried to work? Out of control?
The common thinking seems to be that there are two options for companies facing a layoff. Secrecy followed by sudden announcements, or full-scale chaos. This assumes that honesty is nothing more than an irresponsible dump of data onto a frightened employee population. There is another option.
Responsible and Honest Communication with your Workforce. It doesn't need to be that dramatic either. Here are some tips for maintaining your integrity in difficult times.
1. Develop Financial Transparency - Even in the most profitable times, it behooves you to have a workforce that understands the ebb and flow of your company's balance sheet. Each division should know what they are accountable for in revenues and expenditures, and they should be monitoring this. When people see the guts of the system on an ongoing basis, they are more likely to think about the bottom line as they go about their work.
2. Acknowledge the Challenges - The sooner your workforce knows about the challenges they face, the sooner they can become your partners in taking action. Something as simple as a CEO message like the following can be helpful.
"Customer purchases have slowed in light of the economic downturn, resulting in a 10% reduction in revenue compared to this time last year. We believe this situation is temporary, but because the length of the downturn is uncertain, we're actively looking for ways to reduce non-personnel costs along with increasing the marketing focus on our lower cost products. Every opportunity to save costs will reduce the likelihood of layoffs down the road, and we're relying upon each business unit to identify areas where we can save money without reducing quality or customer satisfaction."
3. If Reductions are Possible, Don't Lie. - It is natural to want to communicate about layoffs only once the final decisions are made, and to avoid unnecessary panic, but it is equally important not to lie. Be diplomatic, but don't stretch diplomacy into a falsehood. Here are some examples of honest diplomacy.
"The rumors about layoffs are only rumors. If there is anything official to report, I'll share it at that time."
"Will there be layoffs? I hope not. That's all I can say for now."
"I know our situation is tough right now, and that things feel uncertain. The only thing we can control is our own work. So let's keep focused and try to dig ourselves out of this hole as best we can."
"I know things feel a bit unsettled right now. I wish I could say what would happen one way or another, but we'll just need to live with the uncertainty until we have concrete news. Let's just rely on each other and be as productive as we can. We're not going to worry ourselves out of this situation, but we might be able to work ourselves out of it."
In short, whenever layoffs are happening it can be a scary time. It is tempting to respond to that fear by protecting others from the realities of the situation. Resist the temptation to protect others from the unavoidable. Instead, embrace your own integrity and treat others like the adults they are.
Dark times present a great leadership opportunity do they not? We will be remembered in brighter times for how we handle this difficult moment. Let's give others something good and noble to remember.
And eventually, the pendulum of commerce will swing, and things will be right again.