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101 on handling retrenchment leaks to the media: Not the worst thing to have happened

101 on handling retrenchment leaks to the media: Not the worst thing to have happened

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News around layoffs and retrenchments are taking over headlines, and leaving job seekers less confident, a study by Blind and Living Corporate has found. Here in Asia, the reports are no different from our Western Counterparts where brands such as foodpanda, to Happy Fresh have all had to cut certain segments of their teams to ensure survival. Of course Sea Group’s Shopee seems to have had to bear the brunt given the fragmented manner in which the news trickled out .

Overall, according to Blind’s tech layoffs tracker, more than 450 startups and technology companies have laid off more than 75,000 people in 2022. Coupled with the headline splashing news around freezing and rescinding job offers,  majority of professionals surveyed (53%) by Blind and Living Corporate also expressed that they feel less confident about their job security now compared to one year ago.

Yet, it is safe to say with the economy in such a turbulent state, such news will continue to emerge, if not dominate – and most of the time, the news will trickle out through unofficial channels.

Marianne Admardatine, CEO of Hill+Knowlton Strategies (H+K), during such periods, it would serve companies better to switch their mindsets to accepting that the media will get wind of the news before the company is ready to make an official statement. “We can’t control that. What we can control is the messaging and how we as a company behave from day one. So even if the news leaks, the media won’t focus on the negativity alone but write the story as is,” said Admardatine.

She added that while massive retrenchments might sometimes see third party agencies coming in to manage media relations and handle damage control, this might also come across impersonal and cold. Internally, the management needs have a complimentary initiative via possibly a townhall to outline remedies.

“Whatever is the reason for retrenchment, the company’s statement must carry the reasoning, empathy, and the solution or remedy. The remedy could be helping them find new jobs, write great references, or provide the right compensations,” she added.

Charu Srivastava, deputy MD of Redhill, shared a similar sentiment and said internal communications is an often-overlooked function in the region. “We live in a knowledge economy and people are increasingly the main assets of companies. It is then even more critical that companies handle any retrenchment or material organisational change impacting people with utmost sensitivity and respect for its employees,” she said.

Srivastava added that while the communications support can come from either in-house or from an external agency, there can be instances where the in-house team might be impacted in the decisions as well. Sometimes, the announcement can be so confidential that it is not possible to bring them into the planning on time.

In such situations, it is better to work with an external agency who can support the process with a neutral stance, shared Srivastava. “The most important thing is to remember that these are human conversations, and humans feel. Here are some things to consider when communicating retrenchment or similarly difficult conversations: be honest and factual, be empathetic and genuine in offering support (if any), and keep an open communication channel,” Srivastava shared.

She added that communications teams, be it in-house or external, should ideally be brought in to balance facts with empathy to minimise any backlash or fallout. While remaining prudent is necessary, companies need to prepare for leaks to happen. Moreover, leaks are not necessary the “worst thing to happen if the company is prepared to handle it, and most importantly, the internal communications is planned ahead and managed”.

“At the end of the day, the companies and stakeholders have to remember that the employees are the main audience in a retrenchment,” Srivastava added. As such a good communications person would prepare the internal stakeholders fronting the engagement with the employees with possible questions and in that process encourage decision makers to think through the reasons or motivations driving their decisions.

3 expert tips to take note of amidst retrenchment conversations:

Keeping an open communications channel is vital amidst a retrenchment exercise as it allows companies to manage questions and doubts internally. However when delivering the tough news, professionals must also be cognizant of the human needs of the person at the other end of the delivery. Here are some recommended tips from PR professionals.

  • Body language: Focus on the person, be sincere, be a good listener and make the convers two-way. Conversations are important.
  • Own the situation: Reduce the blame game. Don’t blame it on other factors and focus on why the retrenchment must happen.
  • Discuss remedies: Make time to listen and discuss remedies, solution, offers to help contact other place of work. Don’t show your company’s need to do this quickly and be done with.

 

Meet Asia’s top PR and communication leaders in-person. PR Asia sets the stage for the future of purpose-driven contemporary PR. Join us on 9 November as we gather Asia’s top PR and communication practitioners in-person in Malaysia. Deep dive into the next necessary steps for PR as we head towards 2023. Only at #PRAsia.

 

Related articles:

Shopee reportedly cuts employees in China
Shopee reportedly makes cuts to SG office, marketing team to be impacted
Shopee to reportedly cut 3% of Indonesia workforce
Shopee's woes continue as it pulls out of Argentina
Will all the news around Shopee’s job offer retractions damage its reputation?

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