Nobody likes breaking bad news, but, if you do it well, you limit the damage to morale. Do it badly, however, and the impact can be far worse. So, how do you deliver bad news in the most sensitive and deft way possible?
Lay the groundwork
Many kinds of bad news — such as cutbacks due to poor business performance — shouldn’t come completely out of the blue. Rather, management should keep staff in the loop so they know when something is afoot. Even if the bad news only affects one individual, that person should know if their performance has been poor or if the company is considering eliminating certain roles. There will be exceptions, of course, but these should be rare.
Not all bad news is the same
Bad news is a spectrum, and you need to work out the scope and impact of the news you’re going to deliver. Often, it’s obvious. The cost of car parking rising 5% is relatively trivial, whereas “We’re closing this office in a month” is very serious. However, news that falls somewhere in the middle (such as underperformance) or affects individual employees differently can be tricky. An example of this might be telling two members of a team that they’re not getting a bonus while their higher performing colleagues are.
Be prepared
Before delivering bad news, rehearse what you’re going to say and anticipate any questions staff might have. You owe this to those you will deliver the news to. Remember that you are in a difficult position. You have to deliver the bad news to your people, but you are also looking after your employer’s interests, so ensure you fully understand the situation. Speak to those above you, HR, and any other relevant stakeholders so you can deliver the news confidently and accurately.
Giving an individual bad news
This is tough, not least because here it is often really personal and the potential for clumsy delivery and an emotional employee can be great. Again, be prepared. Think through your announcement and your explanation. Be calm and clear and stick to your line. Tell the person what the situation is, why decisions have been made, and what will happen for them going forward. The basic template here is the same for everything from a missed promotion to being made redundant.
Giving a group bad news
Informing a group about bad news can be difficult too, though it poses different challenges from delivering bad news to an individual. Making an entire team redundant, while unpleasant, does not feel as personal, although there is a sense of shared pain. Call a meeting and be honest and clear. Explain who will be affected and how. Use direct language rather than hiding behind management speak.
Give the group context for why this is happening to them and explain the process. Explanations can be particularly helpful if the wider economy is to blame (again, it feels less personal). Do not talk about yourself or your feelings because this can come across as insincere and self-serving. If the bad news is unrelated to performance, it may be appropriate to say that you regret that this is necessary and that the decision is no reflection on the group’s good work.
How to handle bad reactions
If anyone (members of a group or an individual) reacts badly, give them space to rant. Even if your news is not a surprise, it will still be a shock. Be ready for people to be upset and emotional. Give them time to let the news sink in, and acceptance will usually follow. If they react extremely badly and acceptance does not come with time, then you will need to speak to HR.
While it’s perfectly OK to sympathise with staff who have received bad news, don’t get dragged into discussions about unjust decisions. If you have delivered the news, the decision is not going to change. To pretend there is a chance of altering it gives staff false hope and creates future headaches for you.
Involve staff when you can
Often, the people you deliver bad news to can suddenly feel out of control. So, try and bring them on board. If, for example, you have to make budget cuts, you might ask for suggestions. It’s not great, but it’s better than dictating to them. Equally, there may be a choice such as relocation or redundancy — even if they’re not that appealing. Talk about support and options. Try to focus on the future as much as you can.
If you have to make some people redundant, you might start by asking if anyone wants to take voluntary redundancy. For those who are thinking of moving organisations anyway, voluntary redundancy can be a very positive thing — and a rare example of turning bad news into a win.
Pitfalls to avoid
Give people bad news as soon as possible — and do not let them find out from others. Rumours floating around for weeks reflect poor management and are demoralising for staff. Worse still is when staff discover from the news or social media that their jobs are likely to go.
When delivering bad news, avoid any ambiguity and dissembling. If you know jobs are definitely going, tell people, rather than saying you’re finalising details.
Wherever possible, deliver bad news face to face, rather than by email or text (as some companies have done). Doing that looks both callous and cowardly, and it is likely to rebound negatively on the company on social media. Finally, avoid ostentation when times are tough. Think of the Japanese tradition of senior managers showing solidarity with struggling staff by taking big pay cuts, rather than paying themselves bonuses and going on flashy holidays.
Showing employees you understand the consequences of bad news and empathising with their position can go a long way in bolstering morale and weathering its aftermath.
Rhymer Rigby is an FM magazine contributor and author of The Careerist: Over 100 Ways to Get Ahead at Work. To comment on this article or to suggest an idea for another article, contact Oliver Rowe at Oliver.Rowe@aicpa-cima.com.
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“Tips for Leading With Integrity From an Engineer Turned Finance Director”, FM magazine, 20 December 2023
