Rumors of potential layoffs rattle employees and can impact productivity even if they are not true.  

With what is being reported in the news about potential layoffs and cost increases, it is easy to understand how employee rumors might start. To dispel rumors, the first thing to do is to have a communication plan to give employees information that will help dispel worker’s anxieties. 

When you put the plan in place, understand employees have no idea about the financial stability of their company. They often don’t know the goals or the plans the company has.

Being transparent with employees and keeping them apprised of the vision of the company, its financial health, and the part they play in the success of the company can help you dispel rumors and retain employees. Make sure all leaders in your organization know how to manage communications.

When you put the communication plan in place make sure you do not tell your employees you heard a rumor you want to dispel.  If the company does end up laying people off, this will further erode employee confidence in management.