12 February 2008
Weak business confidence likely to create job losses
Meet bad news with excellent communication.
The latest labor market outlook from the UK's Chartered Institute of Personnel and Development (CIPD) is looking grim. Nearly 40% of the 1,500 employers surveyed are planning redundancies over the next 3 months.
Last month, The Institute of Directors (IoD) 2008 economic forecast said the UK is entering a period of "stickyflation" (weaker growth and sticky inflation). Graeme Leach, IoD chief economist says: "The years of plenty look as though they are about to end."
Communicating bad news
Bill Quirke, (pictured, right) managing director, Synopsis Communication Consulting and the Hub's strategy and planning expert says communicating bad news is the acid test for an organization. "When the news is bad, communicators need to be at their best," he says.
"Organizations often make it harder by waiting until they think they've got something to communicate before starting to think how they'll communicate it. It's almost always a mistake." But don't do it fast at the expense of doing it well.
Waiting till all is clear – when there's so much uncertainty around – means you're almost certain to be too late. Quirke says employees consistently complain that managers only tell them the good news.
His advice is: "Begin communicating as soon as you can, and be proactive rather than simply reacting to rumor. Retain the initiative and build your credibility."
Employees who keep their jobs are often affected by ‘survivor syndrome’, the guilt of having escaped while colleagues have lost their jobs.
Who will be affected?
Looking at the 2008 predictions, many communicators will be handling news about job losses.
"Communicators have to consider what proportion of the workforce the figures represent," Quirke says.
What looks like a small proportion of the organization can be a cataclysm to employees in a local plant.
"Employees who keep their jobs don’t always feel the unqualified gratitude their bosses think they should," Quirke reminds us. "They're often affected by 'survivor syndrome', the guilt of having escaped while colleagues have lost their jobs."
What does it mean for me?
Employees cannot answer: "What does it mean for me?" if they don't know what "it" is. They're likely to fear the worst.
Managers need to be clear about bad news. "The straight facts of redundancy can be painful for managers, who then use abstract management-speak to soften the blow and conceal their blushes."
"Senior leaders often leave bad news to local managers," Quirke says. But senior leaders should do this type of communication themselves, preferably face-to-face. He does recognize face-to-face is not always feasible and so organizations should at least use "live" channels, such as videoconference or dial-in audio. In this way people can hear directly from the "horse's mouth".
Communicators must keep their promises to get back to people or their credibility is lost.
Communicate – and more
But it doesn't stop there. After communicating bad news, updates are vital. Quirke says: "It's important to keep a constant pulse of communication – and provide feedback channels."
Most important, communicators must keep their promises to get back to people or their credibility is lost.
"Communicators are also in the spotlight," Quirke observes. No one is assured a job at times like these. "Communicators can practically demonstrate how they can help the business."
Good times are over
Although we should not expect massive downsizing, the CIPD report suggests the UK is set for slower employment growth and less job security. Even dependable BP recently announced 5,000 job cuts by the middle of next year. The 2008 economy looks tough and business confidence is at a five year low, but a recession is unlikely say recent business surveys.
Bill Quirke’s forthcoming new edition of Making the Connections – using internal communication to turn strategy into action will be published by Gower in May 2008.
Have your say
Business reports are suggesting bad news is more likely to be waiting in the wings in 2008 – particularly about job losses. Are you well enough connected to your senior leaders to be ready with your communication plan? Or will you be playing catch-up to their bad news? How do you stay prepared? What do you do when you first hear bad news is on its way?
Discuss these issues with other comms practitioners by joining the Internal Comms Hub members' group on the Communicators' Network.
Related articles and resources:
How to communicate during difficult times.
Q&A: What can we do to boost morale when a large number of employees are made redundant?
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