Dear Dr. Mimi:
My company recently suffered a big loss. We are a small firm (fewer than 30 people) and the effect will be felt by all. I am dreading breaking the news to all of my employees. I will not know if I have to lay anyone off for about 60 days. What is the best way to go about doing this? I do not like confrontation and was thinking about sending out an email.
— Dreading It

Dear Dreading:
The longer you wait to tell them the news, the harder it will be and the greater the chance for inaccurate rumors, which are often more destructive than the reality. Do not send an email, because they need an opportunity to react and ask questions of the source, not each other. Gather them together for a meeting. Be straightforward with your employees and tell them as much as you can. If there are certain things you are not permitted to disclose, be honest and say that. Be sure to differentiate between possibilities and realities. If you know who might be losing their jobs, speak with them later and give them as much notice as possible. Often people, when they know the circumstances, will rise to the occasion, make concessions and work with management to get through the crisis. If there were mistakes made, you have a great learning opportunity. Instead of placing blame, let people know what was done and ask them to brainstorm on how they can avoid something similar in the future and/or how they can work to improve the situation so that the same issues do not recur. You may be pleasantly surprised with the solutions that are offered. In other words, give people a chance to help!