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Company-wide pay reduction

Question
What is the best way to tell employees about a pay reduction due to business challenges? 
Answer
Whether through a meeting, a company wide notice or electronic communication, it's not easy to communicate this kind of news. But if the reason is due to company difficulty or challenges, and the impact is more or less company wide, then it's recommended that the company management thoroughly communicate all the reasons for the pay reduction. This includes plans to return compensation current levels.

A prior notice or warning to affected employees to explain the reasons is recommended. Take this opportunity to clearly communicate company pay policies. 
Brain Trust contributor: Author of Improving Performance Results
Related Categories: Human Resources, Management, Motivation
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