Employees want to know the truth, but you don’t want the truth to send them into a panic. If your company is facing a possible merger that would create some duplicate positions, or moving towards downsizing due to economic realities, the “Yes, but” method can be helpful.
Here’s how the “Yes, but” method works: Be honest about the realities of layoffs, but pair it with some sort of silver lining.
So what do you say when employees ask if people will lose their jobs? Using the “Yes, but” method, the company response might be, “Yes, some employees will lose their jobs, but only a small percentage.” Or “but first we’ll offer volunteer retirement packages and that should substantially reduce the number of layoffs.” Or “but not for at least a year when the merger is expected to be finalized.”
The trick is to find some good news to pair with the bad. When employees hear that the company is taking steps to lessen the impact on individuals, whether it’s by offering an outplacement program or generous severance payments or even just by doing anything possible to reduce the number of lost jobs, it helps keep trust in management alive.
The irony of delivering bad news is that sometimes it can increase employee trust. Employees appreciate the company’s truthfulness, and in many cases they also will trust that if something even worse were to happen, they’d be informed of that too.
Knowledge is power. By letting employees know the bad news, the company gives them a chance to make good decisions in their own lives. An employee might decide not to buy that new house right now, or to encourage their high school senior to look at less expensive colleges.
Reference your values. Are you meeting resistance from the higher ups who are uncertain they want to share this bad news? Then you might point out that respect or integrity or honesty is one of your company values, and that this is an excellent opportunity to live that value in a way that’s highly visible to employees.
