What Should You Tell Your Employees When Layoffs Are Imminent?

It's fairly easy to carry a clipboard and monitor processes, impose work rules, report results, and occasionally glower menacingly.

That's why almost anyone can hold the title of supervisor, manager, or even CEO. Managing is relatively straightforward.

Leading is often anything but straightforward. You really earn your leadership stripes when the right answer is, as often the case, also the hardest answer.

Why are some situations so challenging? Leaders don't just manage processes. Leaders manage people: people with hopes and dreams, flaws and skills, and most importantly emotions -- no matter how rational or justified those feelings may be.

So here's a tricky leadership challenge. Check it out, see what you think about how I would handle it... and then share in the comments how you would handle the situation.

The Challenge: You've been told not to share something important -- even potentially life-changing -- with your employees.

For example, say sales are down, financial results are poor, and layoff rumors are swirling. Your team knows you've been in several meetings to discuss options. Yesterday the decision was made to lay off 10 employees the following week... and you've been told not to say anything until the official announcements are made.

And some of the people that will be laid off work for you.

Then an employee comes to your office and says, "Hey, I know you guys have been talking about layoffs. I'm really worried. I can't afford to lose my job. Do you know what's going to happen?"

How do you respond? The simple answer is that you shouldn't tell. Shoot, you can't tell.

But you've built an excellent rapport with your employees. You always answer questions and give honest feedback. So how can you respond without breaking confidentiality... yet also without breaking the sense of trust you've built with your team?

Here's what I think: Hard as it is to do, you simply can't share what you know.

But you also can't just say, "I'm sorry, I'm not allowed to talk about it." That non-answer will hit the floor as, "I asked and he said he couldn't tell me. If there aren't going to be any layoffs, he would have just told me. So I know people are going to get laid off."

Clearly saying, "I can't tell you," doesn't work. You have to go a little deeper.

Here's what you could say:

"You know we've been struggling as a company. And we have had a lot of meetings to look at all kinds of options. I wish I could, but I really can't tell you anything at this point. I've been told not to and that's a good enough reason... but more importantly it wouldn't be fair to anyone else if I told you things I didn't share with everyone.

"But here is what I can tell you: Whenever decisions are made and I have permission to share those decisions I will immediately tell you and everyone else on the team. You guys will be the first to know. I promise. For now, just know that we're doing everything we can to make a bad situation work out as well as possible."

Will the employee go away happy? No. He might even get angry or feel betrayed, especially if you have shared things in the past you weren't allowed to share. (Admit it -- we all spill a few secrets from time to time, especially with employees we trust.)

But this is one situation you can't leak. Don't assume the employee will be able to keep the news to himself. (After all, you didn't keep it to yourself. Why should he?)

Bonus Tip: Any situation where you are asked questions you shouldn't answer is made more difficult when your lips were loose in the past. It's always tempting to share sensitive information with certain employees. Not only is it at times nice to have someone to talk to, sharing also builds a stronger relationship and bond... and makes managing a little less lonely.

But that "openness" also makes any, "I really can't tell you," situation that much more difficult -- and leaves the employee feeling suddenly shut out.

The best practice? Keep all sensitive matters to yourself and never share information you aren't allowed to share. Not only is that a good personal policy to follow, it makes this challenge much easier to deal with.

Now it's your turn: How would you handle this situation?

I also write for Inc.com:

• 12 Qualities of Remarkably Courageous Businesspeople
• 8 Things Truly Outstanding Leaders Do Without Thinking
• 10 Daily Habits of Exceptionally Happy People
  
• 20 Things to Say That Will Dramatically Improve Your Life
• How the Rich Say They Got Rich
  

(photo bigstockphoto.com)

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