In the Office: Workplace – Facts of Business Life

One of the most unpleasant managerial tasks is terminating an employee. I once read that a manager’s risk of a heart attack increases immediately after a termination. I don’t know if this is true, but there’s no question that terminating someone isn’t fun.

Since terminating employees cannot usually be avoided in the world of business, here are some important tips for reducing both the stress and the risk.
Sometimes a termination is necessary because an employee is unable and unwilling to perform as required. Other times, you find employees who are able, but unwilling. Perhaps the most difficult situation is when the employee is unable, but willing. In any case, the goal of a termination is to part ways with the employee respectfully and without liability. In situations related to poor performance, if you’ve done a thorough job of coaching the employee, a necessary termination shouldn’t come as a surprise.

One of the best pieces of advice I can offer you regarding terminations is to avoid misdirected compassion. Translation: Don’t keep a poor performer around because he or she is a nice person. Your actions send a strong and less-than-positive message to others (customers and co-workers) that you tolerate substandard performance.

Many business owners and managers think they’re doing an employee a favor by not terminating him or her. In reality, most people who aren’t performing well know it and the longer they underperform, the worse they tend to feel about themselves. Many times, what a person needs in order to grow is not something your company has to offer.

TERMINATION TIPS. So, how can you avoid this unhappy alliance? Take a look at these termination strategies:

Strategy #1: Evaluate new employees closely and address performance issues immediately. If a new employee is not working out, whenever possible, terminate him or her prior to the conclusion of the introductory period. Why? Because in many states if an employee is terminated for poor job performance during the first 90 days of employment, the employer’s account cannot be charged with unemployment benefits.

More importantly, the longer you keep a person, the harder it becomes to make a change. If you have reservations during the first 90 days, they are likely to be greater later.

Strategy #2: Regardless of when you make your move, prove the reason you terminated the employee was legal and nondiscriminatory. This applies to layoffs as well. While you may operate under an “employment-at-will” philosophy (which means you have the right to terminate an employee at any time, for any reason, with or without notice), you still must be able to establish that the reason was legitimate, business-related and not based on race, sex, religion, disability, age or any other protected class. In the absence of proof, if your decision is challenged by a government agency, there can be an automatic assumption of discrimination.

Strategy #3: If you are terminating an employee for poor performance, document issues leading up to the termination.
State the expectation. Ensure that the employee, without question, understands the performance expectation or job standard. If the expectation is outlined in a handbook or job description, refer to it. Remind the employee that he or she is personally responsible for meeting the expectation.

Strategy #4: Talk to someone knowledgeable about state and federal employment regulations and someone who has “business wisdom.” A trusted adviser can balance the risks with the rewards and can provide insight and information that is fundamental to the termination strategy. Then, ask yourself these questions:

• Have I terminated or retained other employees for the same conduct/infraction?
• Have I considered the employee’s length of service and overall performance?
• Is the “real” reason for the dismissal fully documented?
• Has the employee been given an opportunity to tell his or her side of the story?
• Have I taken precautions to avoid potential violence associated with the dismissal?
• If necessary and required by state employment regulations, have I made arrangements to provide the employee with final wages and pay for any accrued, unused benefits at the time of separation?
• Has the employee been given a fair chance to meet any different job requirements?

Strategy #5: If the issue is one of a “square peg in a round hole,” consider alternatives. Maybe the individual would excel in another area. Question whether other opportunities are available to him or her. In order for this strategy to work, you must have an understanding of the individual’s abilities, personality, interests and motivations. Transferring a problem will simply set you back further.

Strategy #5: If the issue is one of a “square peg in a round hole,” consider alternatives. Maybe the individual would excel in another area. Question whether other opportunities are available to him or her. In order for this strategy to work, you must have an understanding of the individual’s abilities, personality, interests and motivations. Transferring a problem will simply set you back further.

The author is president of Seawright & Associates, Inc., an H.R. management consulting firm located in Winter Park, Fla. She can be reached via e-mail at jpileggi@seawright.com or at 407/645-2433.