Got Bad News for Your Team? Here’s How to Handle It Like a Pro

Sometimes in business, things don’t go according to plan. And as a leader, you’ll eventually find yourself in the position of having to break bad news to your team. How you handle this delicate situation can make all the difference in how your staff sees you and the trust they have in you.

Whether it’s something big like layoffs or something more minor like a tough year, it’s important to approach your communication with care. That’s why we turned to nine experienced business leaders from the Young Entrepreneur Council (YEC). Here’s their advice on tackling this tough question:

As a business owner, I understand how challenging it can be to deliver unpleasant news to your team. However, there are effective ways to handle such situations and ensure that your staff reacts positively. So, what advice do I have for you on communicating negative or potentially troublesome information to your entire team? And how does this affect their response?

Let me share with you some wisdom from the YEC leaders.

1. Let Your Team Help Find Solutions

As a marketing agency, we sometimes face challenges like losing clients or a decrease in revenue. But before we break the news, we always remind our team that we’ve been through tough times before and we’ve always come out stronger. It’s important to be realistic, but also to involve the team in finding solutions. By empowering them, they become an active part of overcoming the problem instead of just receiving bad news. ~ Dan Golden, BFO (Be Found Online)

2. Be Clear and Straightforward

I think it’s important to be straightforward and honest when sharing information. It’s best not to beat around the bush or try to hide things, especially when it’s not-so-great news. Being direct shows that you’re being truthful and transparent with your team, and it can often lead to a more positive response. – Stephanie Wells, Formidable Forms

3. Share News Right Away and in Person

If there’s bad news, it’s crucial to communicate it as soon as you can and in person. Sending an email, text message, or using a messaging platform might seem convenient, but it’s not the best approach. Bad news affects employees personally, so they deserve to hear it directly from their leaders. You don’t want your team finding out about it on the news or social media. They should hear it from you first. – Baruch Labunski, Rank Secure

Step 4: Let’s Solve the Problem Together

If you’re in a situation where you have to tell your team something unpleasant, it’s important to start by letting them know that you’re on their side and want to make things better. Whether you have to announce layoffs or changes in management, reassuring your team that you’re committed to finding a solution will give them some comfort during this tough time. Remember, it’s all about working together to overcome the challenges we face. ~ John Turner, SeedProd LLC

Step 5: Be Prepared for Questions

I think the key to delivering bad news to your team is to be prepared. Before you make the announcement, take some time to think about what you want to say and anticipate the questions people might have. That way, you won’t get flustered when the questions start coming in. Planning ahead for these inevitable questions will help you stay calm, even in stressful times. It’s important to remember that communication is key in difficult situations.

Another tip is to pair the bad news with some form of compensation. For example, if the company is experiencing financial difficulties and had to cut bonuses, you can announce that if the team meets certain goals, the bonus amount will be increased by a certain percentage. This can help soften the blow and show your team that you value their hard work.

Step 7: Understanding the Cause and Making a Plan

Before sharing any bad news with your team, it’s important to take a moment to think about how you will deliver it. Your team will have questions and concerns, so it’s crucial to provide an explanation for what caused the problem and outline your plan to address it and prevent it from happening again in the future. If the news only affects a specific group within your team, make sure to inform them first before informing the rest of the company, so they aren’t caught off guard.

Step 8: Encouraging Dialogue Both Ways

Being honest and understanding is really important. Instead of just telling you what’s going on, I want to have a conversation with you. I want to hear about your worries, answer your questions, and listen to your ideas. When we do this, it makes you feel like a part of the team, like your thoughts and feelings matter. Even when things are tough, we can work together and stay strong. ~ Andrew Saladino, Kitchen Cabinet Kings

9. Pick the Perfect Moment and Location