Can I Ask Employees to Keep My Secret?

Rock, last year I sold all my production equipment. We’re running a skeleton crew, and I’m leasing digital equipment for short-run work. Everything else I’m jobbing out. My customers, I’m sure, think we’re still fully operational. I’ve done nothing to communicate otherwise. I feel like the finished product is still being “produced” by us, and customers are getting a fair price that they agree to. So a couple of questions. Is it unethical to hold that information back? If someone asked, point-blank, I would probably explain the situation, but for now, I just don’t want this gossip flowing. Second, is it wrong to ask my employees not to mention this to anyone? I have not explicitly asked for that favor, but I am thinking about it. I trust you, Rock, and have read your articles long enough to know that integrity matters. Where is the line in this situation?

Thank you for coming to me with this very delicate situation. To boil your question down, you are asking if it is ethical to withhold information from customers about how a job was produced.

Let’s walk along the line of integrity you’ve envisioned and look at where things fall.

1. Let’s say you sold only one piece of equipment and were jobbing out just a portion of something you previously produced in-house. Would you feel compelled to communicate that to customers?
2. What if you had a fire, flood, or emergency and were forced to produce all work elsewhere temporarily. Would you tell customers?
3. What if the printer you were using went around you and contacted your customer directly. How would that play out?
4. What if the printer you were using did a sub-standard job, and it affected your relationships with your customers?

These are all issues related to using a trade provider, and you have probably walked through these scenarios in your mind. I know many printers who use trade providers for some portion or all of a project, and they consider – as you do – that you are procuring the work on the customer’s behalf, and it’s part of getting the job done.

And yet, it somehow feels different when ALL the work is jobbed out, doesn’t it?

Next, the employees.

1. If you had, say, only family members working for you and no “outsiders,” would you be more likely, less likely, or the same as now in wanting them to keep your situation quiet?
2. If you thought you would quickly grow and re-buy equipment in the next 6 to 12 months, would that affect your thoughts about asking employees to keep things to themselves for now?
3. If you were planning to sell the business or accounts in the coming year, would that change how you viewed the need for privacy in your situation?

There is a gray line with no easy answers that fit every situation. That being said, put yourself in your employee’s shoes.

How would you feel about having to lie, withhold, omit information, or misrepresent the truth to protect your boss?

Would this make you worry about your job potentially being in jeopardy if you accidentally (or intentionally) let something slip? Could this cause stress in the workplace and in the employee’s home (as they’ve undoubtedly told their spouse)?

One of the main issues I see is that you consider this a secret – and an uncomfortable one at that.

Here’s what I recommend:

Start by drafting a letter to customers explaining your version of the situation. Controlling this story before gossip gets out is essential. If there are extenuating circumstances you can share, do so.

Next, don’t do anything with the letter for a few days. Let it percolate. Then take another look and make edits as needed. Word choice is important.

Send a well-written version to your attorney for review. Don’t waste money sending a rough draft that they play around with and charge by the hour. Get it up to snuff before sending it. But do run it past legal. The last thing you need is exposure or risk, so get legal guidance.

Once you have a copy that’s approved and good to go, you can decide whether to send it – or not. At the very least, you now have the correct phrasing to describe the situation.

When and if you decide to send it, communicate with employees beforehand so everyone is on the same page. Express appreciation for their loyalty, and try to bring everyone together at the same time to control gossip.

Ask employees to refer all questions from customers, vendors, and media to you. They should not make any statements, even casually.

Think about hiring a public relations firm to help you with the process, especially if you anticipate negative publicity or if you might have to deal with the media. Even if you think this will be a non-event, having an expert by your side makes a difference. If we at LaManna Consulting Group can assist, let us know.

Take a look at this resource from LCG,  “Code Red: 12 Seller Mistakes.” It’s not just for sellers; this guide has practical information that will help you make better decisions about your business.

I’m going to be blunt: Are you having financial problems? Will you be forced to sell your business? Reach out to us. This burden is not something you have to shoulder alone.

Good luck with your decision, and, yes, integrity matters!