A number of companies have announced layoffs recently. One in particular had the news released because of a necessary regulatory filing. Marriott, the hotel giant based in Maryland, where it is the largest private-sector employer, is set to lay off hundreds of employees.
While layoffs are not unusual, the fact that staff learned about the upcoming job cuts through a news outlet that found the WARN Act notice – rather than an official communication from company leadership – is a notable and troubling development.
Being an armchair quarterback, we can’t know where the breakdown was internally, but someone didn’t get the memo that a WARN notice was going out as part of the larger communication plan.
There are a number of legal, governmental, and regulatory actions that force a business to reveal bad news: earnings statements, WARN Act notices, looming litigation, Congressional hearings, reporting from city councils or other government bodies, and so on. These disclosures serve to ensure transparency, protect investors, maintain market integrity, and comply with legal obligations. Which is great – it’s all purposeful and necessary.
But these actions rarely come out of thin air, and if and when they leak or a story is forced before a business has shared the information themselves, it reflects badly only on the business. While the publication of less-than-stellar news arising from public disclosure is largely unavoidable, it’s usually not a surprise and organizations have absolute control over how they manage messaging before and after public disclosures. That is, if the left hand knows what the right hand is doing.
At the end of the day, the manner in which this information is shared can mitigate damage or, if mishandled, exacerbate it.
So, if you want to avoid having your hand forced in having to share difficult or untimely news, remember the following: information that impacts employees, consumers, investors, stakeholders, and/or the broader public – even if it is negative (especially if it is negative) – needs to be handled with care. And that means internal and external communications regardless of who they come from or where they are posted, are planned for, drafted, approved, and disseminated before a regulatory notice makes the rounds or a story hits the newsstand. Here are some tips for managing that:
- Communicate strategically: In a world of instant communication through news outlets and social media, timing is crucial. Control your own narrative. Communicate to your stakeholders, who may require different levels of detail, support, and communication.
- Communicate with clarity: Be as transparent as possible, which will bolster credibility. Do this by first acknowledging the problem, explaining why it happened, and outlining steps the organization is taking to fix it.
- Communicate with empathy: Bad news will always hurt someone. Whether you’re communicating negative information like a round of layoffs, a faulty product that needs to be recalled, or a devastating financial setback – showing empathy matters, both to those impacted by the issue and those observing how your business responds.
- Communicate swiftly: There’s something to be said by employing a “rip the bandage off” approach in these types of situations. Delaying the release of messaging internally and externally can negatively impact how you’re perceived. It can make a business look like it doesn’t want to own up to a problem, that it doesn’t care about those impacted, and/or that it maybe even has something else to hide.
- Communicate more than once: In many cases, you will need to continue sharing information after your initial messaging, be it updates on a legal situation, data from any financial losses, or next steps for employees whose jobs are on the line. Continue to address your stakeholders’ needs and and concerns openly, with empathy, and in a timely manner. This will help you in the recovery process.
And then turn to the recovery process, where you work to rebuild your reputation and move forward. After all, it’s more important than ever to protect your reputation in uncertain times, isn’t it?
Here are a few thought starters you can discuss at your next team meeting to help your leaders and team see how your business would handle a forced truth:
- How would your business have handled this situation?
- What processes can be erected to ensure departments with overlapping inputs and responsibilities remain on the same page?
- How would you communicate to employees who receive sensitive news from a source outside of your organization?
Kith facilitates crisis preparedness workshops that will help your company attain the clarity, trust, and speed you need to respond confidently – no dithering! – to any crisis. We’d be happy to have a conversation about how we can help your company be ready to chart an effective course to reputation protection.
