What are budget cuts?

Budget cuts can come in many different forms. Here are some common forms of budget cuts companies might employ:

• Closing manufacturing facilities or other company properties

• Moving office space to a less expensive building or region

• Downsizing office space size

• Attempting to streamline a company's supply chain

• Laying off employees at large or in specific departments

• Reducing employee pay or wages

• Eliminating or reducing the amount of outside professional services a company uses

• Implementing new forms of cheaper technology

If you are having to communicate budget cuts to your staff it is important to follow these steps:

• Make sure you take care of yourself first

While the concern of your employees is very important, it is critical not to forget about yourself. Budget cuts often affect large swaths of employees in a company, and this might include you. The better you can acclimate to the situation, the better you can communicate the cuts properly to others.

• Communicate with clarity and use data if possible

Budget cuts can stir up a lot of emotion and anxiety in the workforce. That's why it is important for you to deliver the information factually, clearly, and concisely. Also, you should try to be as prompt in your communications as possible to avoid rumors amongst the staff.

• Be calm, polite, and professional

The delivery of this information is very important in terms of the tone you communicate it in. Many staff members look to their leaders to understand how to properly react in a budget-cut scenario. You can influence the attitudes of the staff by keeping calm and delivering the news in a professional manner.

• Try to manage employee expectations

Many employees will immediately want to know what the budget cuts mean for them and the company as a whole. You should be honest about the implications of the budget cuts. This helps them process the information and keeps things constructive. You should also be clear about what you expect from them during this challenging time.