Talking to employees about cost cuts is a difficult job for leaders and communicators, yet it is vitally important to get it right, especially now that it is such a big part of the way businesses function.
Scores of the Fortune 500 clients we’ve worked with at The Grossman Group are cutting costs, and often that’s not because of financial issues. Instead, cutting costs is seen as a smart business practice, designed to help a company prioritize so it can innovate, invest smartly and grow.
At the same time, poorly communicated cuts can severely damage employee morale, as well as a company’s ultimate results. In our experience, leaders who know how to communicate company changes ultimately succeed because high engagement levels are leading indicators of financial performance and other positive business results.
Drawing from case studies of leading businesses, our latest eBook, Cutting to Win: 6 Steps for Getting Employees on Your Side During Cost Cuts,offers 6 critical steps and strategies to help you navigate through times of change within your company, including:
Use a smart, well-planned and fair process
Build a strong business case
Emotionally connect with employees
Consider appearances/how change looks to your employees
Align all leaders on the message
Communicate specific direction and actions for employees
These strategies will help ensure you’re communicating your changes in the most effective way. By doing so, you’ll win more of your employees’ support, which is vital for inspiring and engaging employees though challenging moments.