Leading through a crisis: how to communicate bad news to the team?

So what do you do when you cannot pay payroll?

– Overcommunication is Key

Yesh, this is not something any CEO wants to have an issue with. Ever. Literally a CEO’s number one job is to consistently pay their employees. But as we can see from the last few days, anything can happen. But when it does, how a leader communicates these issues indicates the strength of their leadership skills and the health of their company. During times of crisis, the only thing a leader can do for their team is to be prepared to communicate, communicate again and again, and then take it like a champ.

Here are some tips on how to communicate with your team when you are uncertain about making payroll:

Communicate Now and Often: People get jumpy when you stop communicating, so it’s best to keep the emails consistent, and often. It may be all you can do to keep panic at bay. But also be honest about what is going on. It’s okay to open up a little visibility in certain situations, so be sincere and tell them what is going on and how you will fix it. Here is a template you could use. Set expectations immediately: You want to Underpromise and Overdeliver. It is best to ONLY provide a sustainable timeline of how you will correct. If you are unsure of the timing to meet payroll -eh hem to SVB- let your team know it and also be honest about the steps you are taking to fix and keep them updated. It’s okay to be uncertain. Be prepared to answer questions either way. Turn on your listening ears: If you have 10 employees, you may have to hear the same concern 10 different times. Be ready to actively listen without making excuses or belittling someone else’s situation over yours –even if you are not getting paid. They don’t care. Your job is to pay your employees; they need to know and believe it is your top priority, even though you may also need a hug. Stay positive: The best thing you can do is maintain a positive outlook, even with your managers. Because they may also be uncertain about their situation, so you may have to take one for the team and stay positive, motivating, and focused. What not to do: enter an all hands while rubbing the last few hairs off the top of your head. You may have to put a show on, but it’s the best thing for you to do. Be okay with negativity: People may not react well, but it’s to be expected. Prepare yourself immediately so that not everyone will be “cool” with missing a paycheck, even if it is out of your control. Be prepared for anger, frustration, and maybe even hurtful words from people. It’s best to create a script that you can go back to keep your comments consistent when answering questions or dealing with adversity in this way. Even when you are uncertain about all the answers, the best option for you and your team is to be honest, so you can keep the panic at bay. Panic creates confusion, and confusion well creates—chaos.