I read a parenting column the other day by a child psychologist who encouraged parents to be truthful with their kids about finances. She explained that children tend to have wild imaginations, and tend to make up worst-than-reality outcomes from bits and pieces they may overhear.

 

Employees can be like that, too. Between the daily dose of bad business news in the media and the trusty grapevine, workplace speculation could be unnecessarily derailing your company's productivity.

Manage Speculation with Truth

If business is down, it might be a good idea not only to share this with your employees, but also to tell them your plans to fix the situation and the adjustments needed going forward-even if drastic measures must be taken. Be sure to be clear about what information they are free to share and what should be kept confidential within the company. Chances are they already know or suspect what's going on, and the reality-check conversation might actually relieve their minds and allow them to focus on being part of the fix.

"Truth is generally the best vindication against slander."