STRATEGY

Here's one of the more difficult workplace dialogues in this book. Reducing salary is a tough thing to do. There's bound to be a great deal of anger on the part of the employee so don't be glib or try to put too positive a spin on the situation. The great danger here is that the employee will take it as a sign they aren't appreciated and will look elsewhere for a job. That's why it's essential you do everything you can to impress on them that you'd like to keep them. But at the same time, you can't pull any punches. Don't imply it's only temporary if you know it's intended to be permanent, and don't promise to make it up to them in other areas if you can't. One secret is to go to the employee's office, rather than having them come to yours. That reduces some of the fear and also puts you more in the role of supplicant. Normally that's not appropriate, but in this case, you are a supplicant. You're asking them to stick around even though you're cutting their pay.

TACTICS

• Attitude: Accept that you're asking the employee to give up a great deal and a bit of fear and anger on their part is justifiable.
• Preparation: Make sure you understand the organization's rationale for the pay cut and can explain it succinctly. It's essential you use the same explanation with every person you speak with—mixed messages will imply a hidden agenda and that will destroy the already battered morale.

  
  

• Timing: Present the news as soon as you know it's official, regardless of the time of day, day of week, or status of any other activities. This may require dramatic action on the part of employees and they deserve as much lead time as you can give them.
• Behavior: Do all that you can to reassure the employee that their job is safe and their future with the company secure. Absorb anger—it's a legitimate response to these circumstances. Be as compassionate as you can but refrain from making promises you can't keep or sugarcoating the news.

ADAPTATIONS

This script can be modified to:

• Reduce staff, benefits, or perquisites.
• Increase an employee's contribution toward medical or pension plan.
• Transfer an employee.

KEY POINTS

• Be clear and direct, presenting this as an unavoidable and final decision that doesn't reflect on the employee's performance or standing in the organization.
• If the employee cites their own success in response, reiterate that the cut isn't linked to performance, it's across the board based on the company's needs.
• If the employee asks if it's temporary or asks what they'll be receiving in exchange, be honest.
• If the employee expresses fear about their position, reassure them that this isn't a question of performance.
• If the employee expresses fear about their finances, commiserate, but stress that there's no alternative.
• If the employee asks if you're taking a reduction, be truthful.
• If the employee threatens to look for another job, stress the company's desire to retain them, but accept that there's nothing you can do to stop them.