Oftentimes in life, we will try and soften the effect that our words will have on the chosen recipient through careful wording and euphemisms, hoping that in beating around the bush enough we'll still manage to get our point across but in a way that doesn't upset the target party. Of course, usually, if the person you're speaking to is getting the point and the point is something that they should be upset about, they're just going to get upset anyway. This renders the entire thing to be a rather pointless and exhausting exercise and you're probably better off just being forthright from the outset.
This principle especially applies when giving your employees a demotion. You're giving them a demotion—there's really no point in trying to sugarcoat that fact and soften the blow of their impending reduction of income and stature. They're going to be upset, and rightfully so, and any attempt you make to ensure otherwise is just going to come across as being in poor taste. They might then decide to leave and cripple your operations at a pivotal moment of their project's delivery… You really should have seen that one coming.
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