As Microsoft, Google, and other major companies join the market for blogging software and services, Six Apart is forced to lower its prices to remain competitive. Unfortunately, lower prices mean the company will have to lower its operating costs if it is to remain profitable, and employee salaries are the single biggest cost. The management team has decided to enact a 10 percent salary reduction for the next six months and then reevaluate the company's financial health at that point. However, some of the executives are convinced that the salary reductions will have to continue for a year at least-and perhaps even be permanent. In light of this knowledge, which of the following communication strategies would best balance the needs of the company and the needs of the employees?
a. Tell employees that the 10 percent pay cut will last six months, without implying that it could last longer or even be permanent. If employees worry that their income could be reduced permanently, they'll start looking for other jobs now, which will be a big drain on worker productivity and make the financial situation even worse.
b. Tell employees that the 10 percent pay cut is scheduled to last six months, leaving open the possibility that it could last longer without stating so.
c. Explain that the pay reduction is likely to be permanent, even if you're not sure that will be the case; it's better to give employees the worst possible news and then offer a pleasant surprise if the situation works out more favorably than expected.
d. Tell employees that the pay cut will last for six months, at which point the management team will evaluate the situation and decide if the cut needs to be extended beyond that. Explain that you'd like to be able to provide more solid information, but the uncertainties in the market make that unrealistic. The best that you can do is tell employees everything you know-and don't know.