How to Terminate an Employee The Right Way

The circumstances may be different from company to company, but the end result is the same: you have decided to terminate an employee. This is a decision that is difficult on many levels (for all parties involved), and may have been culminating for a long time. Let’s face it – firing is sometimes necessary, and is part of management (whether we like it or not).

We have already discussed some signs to look for in 5 Telltale Signs You Are About to Get Fired. The employee may or may not know this day is coming, but how you handle it says a great deal about you as a leader, and your company.

The person responsible for delivering the termination message is often filled with anxiety. He or she will be delivering a life-changing blow to the employee, and feelings of guilt and uncertainty are very normal at this time. Employees are terminated for many reasons; most commonly for:

1. Elimination of a position
2. Improper personal relationships
3. Criminal activity
4. Poor performance
5. Absenteeism or continued tardiness
6. Continued violation of other company policies not mentioned above

Regardless of the reason, however, it is still imperative to ensure that a termination is handled with ethics and dignity.

What Do You Want to Avoid When You Terminate an Employee?

When releasing an employee from a position within your company, there are some key actions to avoid in order to make the situation tolerable for those involved:

You Don’t Have Proper Documentation

In most cases, letting a person go is not a split-second decision; it has come as the result of continued disciplinary action.

Have you put the person on a Performance Improvement Plan prior to the termination?

If so, what was the result? Did he or she make a conscious effort to improve?

Having a “paper trail” of consistent documentation provides evidence of your efforts to create accountability for your employee. Proving that he or she continued to violate policies and not improve behaviors provides a justifiable cause for the termination.

If you don’t have violations documented, it becomes a story of “he said, she said” and you are positioning yourself for legal troubles.

You Aren’t Compassionate

This is a slap in the face to any employee – and you could end up with a literal slap in the face if you approach a termination without respect!

Be honest. Calmly explain what is happening and why. Do not raise your voice, or make personal, demeaning comments to the employee.

Be conscious of your messaging. Be prepared with what you plan to say and how you are going to say it. Now is not the time to wing it, because you may say something you don’t mean. Given the circumstances, this could have a lasting effect.

Be sure you will be delivering the news in a private location, so that the person is not publicly humiliated.

Listen. Different people process emotions differently, so be prepared to be a listening ear if necessary.

You Are Not Prepared for Next Steps

When you deliver the news of a termination, documentation isn’t the only item you have to be prepared for. As mentioned above, you will have to be ready to handle the emotions that come with a life-altering event. There will likely be anger – directed at you. There may be tears. There may be denial.

The employee will begin a formal grieving process, and you need to be prepared to handle it.

It is a good idea to have another person present when delivering a termination message, but that may not always be an option. If possible, be sure that the person is taking notes about the conversation, and reactions on both parts.

Be prepared to answer questions about next steps. Your employee may not know what will happen next, so be prepared to provide some answers.

Since the event will be very emotional, the employee may or may not be able to process all of the information you are providing, so have a packet of information ready regarding what the next steps will be.

Explain whether there will be a Severance Package or Outplacement provided, and a contact name for more information.

If it is a downsizing, be prepared to provide some options for the employee: other companies to look at, contacts they may want to make. Your willingness to assist in the transition will make it easier to bear.

You Have Delivered the Message: Now What?

Almost everyone that has ever terminated an employee can tell you that it is never an easy task, and there are usually words or actions that they would do differently, if given the opportunity. Firing an employee is not only severing him or her from your company, but it is a tragic event in their lives, and must be handled delicately.

Once the Employee Walks Out the Door

The way that the employee exits the termination meeting (and then the building), will have a lasting effect not only on him or her, but the existing employees as well. This relatively small window of time can impact morale well into the future. There is a very real chance that the employee will have relationships with others in the company, and they will feel strongly about how this person is treated, even if he or she violated a policy, or behaved unprofessionally. Keep that in mind, and try to put yourself in the person’s place. How would you want to exit the company if you were losing your job?

Again – make sure you have either communicated or provided in writing, a clear explanation of when the employee will receive his or her last paycheck, information on health benefits, severance pay, and other insurance, if applicable.

Outplacement – If at all possible, I recommend providing outplacement service. Outplacement service can vary, depending on the provider, but will be an incredible source of support, guidance, and organization for a displaced employee at a very uncertain time in his or her lives. The Outplacement counselor typically stays with the individual until he or she lands in their next position. The service provides a neutral point of contact for questions and advice throughout the search process. Resume assistance, interview advice, and job offer negotiation are included under the outplacement umbrella. Providing outplacement for a terminated employee further reinforces respect and dignity, even after an exit.

How to Communicate a Departure to Other Employees

Every aspect of the termination process requires professionalism and dignity; communicating the departure to other employees is no different. There are different methods for letting other employees know such as:

• Gathering the group together at a small company to communicate an employee’s departure
• Emailing other employees with a consistent message
• Convening with small groups to communicate the news

Regardless of the method you choose, the message should be extremely professional, and not derogatory in any way. You should explain that the employee is no longer with the company, but hold off on the details. Other employees do not need to know whether the person has departed voluntarily, or was fired. Much like the termination, keep the message brief, direct, and professional. Others need to know that the employee is no longer with the company, and where the person’s responsibilities will be directed – nothing more. If he or she chooses to provide additional information, it is a personal choice.

How to Communicate a Termination to Customers or Vendors

The messaging you provide to customers or vendors regarding a termination should be very consistent with the communication you provided your employees. You will need to ensure them that their level of service will not be disrupted, and provide an immediate point of contact. Do not engage in gossip or negativity – the customer may not have been happy with the service provided by the employee, but he or she will remember the lack of professionalism on behalf of management long after that employee is replaced. Be sure that any issues or concerns are addressed and resolved, and move on.

Conclusion

Letting an employee go, regardless of the reason, is difficult for everyone involved. Preparing for a termination, and handling it humanely is the key to soften this very uncomfortable and awkward task. Always try to related to the employee being terminated, and determine how you would want the situation handled if the tables were turned.

Of the comments I have received, the one that most “firing” managers have mentioned has been related to improving the performance of an employee. My next article will outline just that: What to do When an Employee is Not Performing. We will discuss just what a performance improvement plan should entail, and how to follow up on accountability.

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Additional Reading:

Fix Them of Fire The: Managing, Evaluating and Terminating Underperforming Employees by Steven Shaer

Performance Management: Is it Time to Coach, Counsel or Terminate (Managing Employees Series)by Pat Brill

We’re Going to Have to Let You Go: A Guide for Effectively – and Professionally – Terminating Employees by Isaac Hammer