Mistakes to Avoid When Letting Staff Go

It is hard to open a newspaper these days andhaving another manager or supervisor there with
avoid stories about the instability in today's jobyou at the meeting. In the case of a lawsuit, you
market. Figures for the year ended December 31,have a witness. You also demonstrate consensus
2007 the Department of Labor's Bureau of Laborin the decision. If not addressed quickly, one
Statistics show that mass layoffs increasedemployee's termination can alarm the rest. The
approximately a 6% from 2006. However, thatgrapevine can exaggerate news in a heartbeat, so
figure only reflects those who claimedbe sure to communicate the reasons quickly and
unemployment insurance from employers whopositively. You don't want to cause any feelings of
cut 50 or more employees at a time. To makeinsecurity among your staff.
matters worse, employers don't seem to beDON'T AVOID THE MATTER.
hiring; the unemployment rate now stands atTime is money, and while the employee is sitting
4.9%, up from 4.4% at the end of the firstat the desk being a lousy performer, your
quarter. As companies adjust for what may becompany is absorbing the costs of paying for his
uncertain times that may lie ahead, lay-offs aresalary and benefits, as well as any related
obviously one measure that companies may takeoverhead costs. This would only be compounded
to cut costs. Unfortunately, letting staff go is onewith the severance pay, continued benefits,
of the most unpleasant and, sometimes,outplacement help, etc. that your company may
unavoidable parts of being a business owner.offer when he actually does leave.
No one enjoys the termination process. Firing anCONSIDER TIMING.
employee can be a painful, difficult, and aGenerally, it is not recommended that you fire
potentially costly task. Not only do you lose yoursomeone first thing in the morning, or on a Friday
investment of time, money, training andwhen a weekend would give the employee time
experience, but you can put yourself at risk forto become angry and resentful. A mid-morning
being sued. The highly emotional nature of themeeting gives him the chance to vent over lunch
process can turn any well-intentioned words orwith his co-workers, while a late-afternoon
actions into fuel for wrongful discharge suits andmeeting would let him slip out without having to
personal resentment.work amidst whispers of gossip in the office. Use
The best way to make sure that you're notyour best judgment.
setting your company up for a lawsuit is to handleAVOID PATRONIZING SYMPATHY OR COLD
the entire termination process effectively andPROFESSIONALISM.
without ambiguity. In short, plan. The following areOffering comfort by saying, "I know how you
seven tips for implementing a mess-freefeel" or "I feel awful" will most likely hurt your
termination:employee more than it will make you feel better
Avoid Small Talk. Starting the meeting off withabout yourself. As stated before, cut out the fluff
questions about the family or last night's game- it is only insulting in a situation like this. However,
delays the bad news only momentarily. It alsomistaking cold indifference for professionalism
sets an awkward tone for the not-so-small topicwould not help either. The best thing you can do
coming up next. Since this is a final decision andis to simply offer an explanation and sympathy in
not a discussion, all you really need is 10-15a manner that shows you still respect him. In the
minutes. Come prepared with a speech or ancase of protest or argument, be patient, hear
index card with bullet points listing key points thatwhatever he has to say, and firmly repeat your
you want to make clear. Friendly chatter onlyreasons, decision, and sympathy. Don't concede or
makes the news more painful - keep it short,show hesitation.
keep it professional.DON'T OFFER TO HELP AT THE END.
AVOID SURPRISES.Again, be careful not to say things that will only
Whether it's staff reduction or poor performance,provide you temporary relief from your guilt.
the employee should have been prepared by theUnless it is company policy to contribute to
time the final decision has been made. If it's aoutplacement services yourself, or unless you
performance issue, termination should be the finalreally, truly desire to make a commitment to help,
resort. For every meeting with or about anit will only be an empty offer that drags out what
employee, there should be notes describing yourwill soon be a non-existent employment
efforts. It would be a good idea for theserelationship. Not only would you be insulting him,
documents and any performance evaluationsbut this ambiguity could give him a basis for legal
administered by the company to be signed by theor other appeals.
employee. This provides proof that the employeeDON'T END THE MEETING OPEN ENDED.
was given recommendations and reviews, and inProvide a clear time period for departure. Bring
essence, guidelines for expected improvement.the final paycheck. Provide him with contact
With proof of fair warning, it makes it difficult forinformation of the person who handles these
a fired employee to argue unwarranted discharge.arrangements. For true finality, offer severance
"Managers need to prepare well before theypay, commissions, or outplacement in return for a
meet with the employee," explains Susan Herman,signed waiver of their legal rights. Check with your
author of Hiring Right: A Practical Guide. "Theycompany to find out the time limit employees
need to look at the employee's overall jobhave to consider these offers.
performance accurately and carefully, and makeTo maintain perspective, picture yourself on the
sure the company's personnel policies are in goodother side of the desk. Imagine how you'd want
shape. A team of managers should be involved into be treated.
the decision." Another form of "documentation" is